For many couples in Florida today, splitting retirement account assets is a common thing during a divorce. Whether these accounts are still young with many years left to grow in value or they are mature and have been growing for decades, this can be a hard reality for spouses. Letting go of large amounts of saved assets is never easy. However, what can be even harder is watching a good portion of that money be lost to unnecessary taxes or fees.

Fortunately, it can be possible for spouses to prevent the need to pay some taxes or fees when splitting 401(K) accounts as part of a divorce settlement. The U.S. Department of Labor explains that the use of a Qualified Domestic Relations Order is essential to making sure this can be done. A QDRO lets tax entities and retirement plan administrators know that specific financial transactions are approved as part of divorce agreements.

Typically, money is not allowed to be withdrawn from retirement funds except by the fund owner and only for retirement purposes. Specific criteria such as age must be met. Distributions that fail to meet all criteria may be subject to penalties and taxes. Distributions of money to a non-account holding spouse would fall in this category. The use of a Qualified Domestic Relations Order, however, can provide the assistance needed to legally approve the transfer sans penalties or taxes.

This information is not intended to provide legal advice but general information for Florida residents about how to protect against unnecessary asset loss during a divorce.

Divorce has the potential to completely change a person’s life, for better or worse. One of the most significant changes you will experience to some extent after divorce is a change in your finances.

in order to ease some aspects of the financial transition between marriage and divorce, Florida laws allow you to pursue spousal support, or alimony. The more financially secure person pays this money to the financially disadvantaged spouse. However, whether or not alimony will be awarded in your case will depend on several factors.

Generally speaking, the factors that will be considered in assessing an alimony request can be grouped into three categories: financial status of the potential recipient, financial status of the potential payer, and the details of your marriage.

If you are requesting alimony, the courts will look at:

• Your education level and training
• Your earning capabilities
• Your child custody responsibilities
• Your need for support

If you are being asked to pay alimony, the courts will assess:

• Your available income
• The tax implications of paying alimony
• Your financial resources outside of income
• You ability to pay support

The courts will also examine the following elements of your marriage:

• The length of the marriage
• The lifestyle enjoyed by both parties during the marriage
• Each person’s contribution to the marriage
• The reasons why the marriage ended

Based on these and other factors, the courts will decide if alimony is appropriate. If so, they will then determine how much alimony will be ordered and how long it will be paid.

With all this in mind, you may be able to get an idea of whether or not alimony might be awarded in your situation. If there is a need and means available, it could certainly be a factor in your divorce. However, every divorce is different and no two petitions for alimony are the same.

In order to more specifically evaluate your situation and the potential for alimony, it can be crucial that you discuss your case and your post-marital financial concerns with your attorney.

While every divorce case can be complicated, high-asset divorces can be particularly complex. This is because there can be huge sums of money, sophisticated investment portfolios and multiple properties that can be eligible for distribution. When there is a significant amount of money involved, an otherwise amicable divorce can get quite contentious.

People generally prefer an amicable divorce to a lengthy, bitter courtroom battle, but it isn’t always possible when divorcing spouses are trying to get as much money as they believe they deserve and don’t see eye-to-eye on who deserves what. This is likely something that Elon Musk and his soon-to-be ex-wife are trying to avoid. The two recently announced they have filed for divorce.

Musk is a well-known billionaire who has co-founded and started numerous companies and has invested in some of the most talked-about technology. In 2010, Musk was already an established businessman when he also married Talulah Riley but had yet to make his first billion.

Despite his existing financial resources, Musk and Riley decided against a prenuptial agreement. This means that all marital assets could be divided between the spouses. Not surprisingly, Riley is seeking spousal support in this divorce.

At this point, reports indicate that the divorce is amicable and the two intend to remain friends. However, there is the potential that things could take a turn if problems arise with the process of distributing assets.

For instance, Musk’s earnings from various investments over the years could be considered separate property, which would make them ineligible for distribution. This would have a significant difference on the money that Riley is awarded in a settlement.

While it is certainly a good thing when two people try to keep a divorce amicable, there are situations that are complicated and frustrating which can make it very difficult to work toward a peaceful resolution. However, with legal support and guidance, it can be possible to pursue the desired outcome while also working to avoid costly disputes.

Source: Fox News, “Elon Musk’s wife files to divorce billionaire,” March 22, 2016

Cutting ties with an ex after divorce can be much more complicated than you may realize. This can be especially true when it comes to money.

After your divorce, you can still have several financial ties linking you to your ex, particularly when there are significant assets to consider. In some cases, you are linked by property you are trying to sell; in other cases, you are linked by monthly child support payments. While these may seem reasonable or simply inevitable, there are other links that can be much more difficult to accept. Spousal support is one such link.

Spousal support is often a contentious issue. People ordered to pay it often feel it’s unnecessary or unfair; recipients can feel like it’s not enough. These two wildly different perspectives can make the fighting between spouses even worse than it already may be.

However, you should understand that orders for alimony are not arbitrary, even though it may seem like it. In fact, the courts will only order alimony payments if they can determine there is an actual need for the support and that the person ordered to pay actually has the ability to do so.

After considering several factors, the courts will then assess the type of alimony that may be ordered. In some cases, alimony is only ordered for a brief period of time; in other cases, an order will be in place until a specific event — including death — occurs. In other words, the payments may be temporary or permanent.

There are three things we hope readers take away from this post:

1. Spousal support is not ordered in every case.
2. If ordered, alimony amounts should be reasonable and reflective of the individual circumstances.
3. The type and duration of alimony that is ordered varies and depends on the nature of support needed.

With all this in mind, you should have a basic understanding of what you might be able to expect in terms of spousal support in your own divorce. However, for more details and an examination of your specific situation, it can be best to discuss alimony with your attorney.