Written By: Lenorae C. Atter, Attorney
Wood, Atter & Wolf, P.A.
Florida divorces require that assets, including all accounts (IRAs, Mutual Funds, etc.) be divided equally by the parties. Once the assets are divided equally, the income available to the parties may be construed differently and impute certain monthly allowances to a party when determining if alimony will be awarded. In a recent Florida case, Neiderman v. Neiderman, 36 FLW D927 (Fla. 4th DCA May 4, 2011), the court found that the Wife could be imputed income from the division of an IRA. While IRAs do have a penalty for withdrawals made before age 59 and 1/2, there is a provision under IRS Regulation 72(t) that allows equal periodic payments from an IRA without penalty. This is done only if the payments will be for more than five years; the life expectancy of the party; and if there is a reasonable rate of return. Under this provision, the wife in Neiderman could withdrawal $9,000 per month without invading the principal. Therefore, the wife was imputed $9,000 per month income only from the IRA as imputed income for determining her alimony award since her husband made $500,000 per year and she made $35,000 per year.
Given market changes, she may be able to apply for a modification of alimony if there is a deviation of at least 15% in her available income.
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If you divorce and were married for at least 10 years prior to the divorce, then you may be entitled to receive social security benefits equal to those of your spouse. You can qualify for this election at age 62, if you are divorced for at least two years from the person; not married at the time you reach that age; and your ex qualifies for social security benefits. If your ex is at retirement age and entitled to receive benefits, but has not done so yet, then you may still apply for the benefits. However, if you remarry and are still married by the time you reach social security age, then you cannot opt for your ex’s benefit amount. By opting for the benefits of your ex-spouse, it does not impact what s/he may receive in
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Retirement and pension accounts are often a source of of issue in a Florida divorce case. When divorcing, the law states that marital assets, including bank accounts, mutual accounts, pension and retirement accounts, must be