Florida's Equitable Distribution Law and Your Home
This is often the most emotional and also the most expensive joint asset of divorcing couples. Consult with an experienced Tampa divorce and equitable distribution attorney who can help you to negotiate the process of dividing the assets from your home. Generally, if you sell the home, property taxes are paid by the seller. If one or the other spouse wishes to keep the home, determining whether either spouse will be able to uphold the financial responsibility should one or the other keep the home is often warranted. If you sell the home before your divorce is finalized, then at this point, the expense of the taxes and other expenses associate with selling your home can be divided. You may be subject to some assistance with taxes under the Mortgage Debt Relief Act of 2007.
To find our more about how property and assets can be divided, please contact our Tampa family law firm at (813)879-4600.
Filing Taxes When Divorcing in Florida
Sometimes divorced couples will neglect to negotiate how future filings will be handled in the final dissolution of marriage. The filing status of Each spouse should list whether the spouses will itemize or use standard deductions if filing separately and both must agree to use the same method. It should be clear which spouse will be entitled to claim certain deductions or exemptions. (both must use the same method), and which spouse will be entitled to claim certain deductions or exemptions.
Filing Status For Separated Spouses - Understanding and determining how spouses should file taxes until the final divorce decree is entered is important. Higher tax brackets or unallowable credits and deductions may actually impact you negatively. An accountant with experience in income tax preparation should be able to help both spouses determine which filing status will be most advantageous.
Tax Deductions and Dependency
One of the most asked questions of divorced parents of minor children is "Who gets to claim the dependency deduction for the children in Florida?" Without an order, the law generally allows for the parent with primary residency to claim the children. Allowing the non-custodial parent to claim the children will actually increase their net income, and can increase the amount of support that they are obligated to pay. If your earned income and adjusted gross income is less than the threshold sets by the IRS, you may be eligible for the earned income credit. You should consult with the IRS and their updated publications to learn more about the Earned Income Credit for the current year as this may frequently change.
Child and Dependent Care Credit
If you are paying for child care and have an order to pay child support, you should consult with an accountant to see if your contribution for day care under your order can be claimed. You must have one qualifying child. If you are married or filing separately you cannot claim this child care credit.
IRS Qualifiers for Child Tax Credit
Is claimed as your dependent (and)
is your son, daughter, adopted child, stepchild, grandchild or Frost child (and)
Is a US citizen or resident alien
Was under the age of 17 a the end of the tax year
There are other ramifications that can effect the overall benefit or detriment to your future income or that of your spouse. Alimony or spousal support, additional child support and other factors can apply. A tax attorney or specialist can help you to determine if it is the best choice to claim this credit, even if you qualify to do so.
Other Areas Covered Under the Equitable Distribution Law
Other assets that may need to be divided when divorcing in Florida:
Stocks
Bonds
Mutual Funds
Portions of retirement funds
Portions of IRA's
Other Items that have appreciating value
If you are considering hiring a Divorce Attorney near Tampa, it is wise to make sure he or she has a good deal of experience in family law, but also in equitable distribution law in Florida. Nilo J. Sanchez and Associates has specialized in Florida divorces for 30 years in Tampa Bay.
