In awarding alimony, the court shall consider the tax treatment and consequences to both parties of the award. In Tarkow v. Tarkow the Florida Court of Appeal stated that: “Unfortunately, the GM’s calculations fail to take into account the effect of federal and state income taxes on the Former Wife’s needs. The Former Wife raised this issue in her exceptions to the Recommended Order. Along with her exceptions to the Recommended Order, the Former Wife submitted a ‘FinPlan Schedule’ that she asserted reflected ‘the necessary amount of alimony needed to pay the State and Federal Income Tax liabilities attendant with the investment and retirement incomes found by the [GM].’ The Former Wife also raised the income tax issue in her motion for rehearing.
The circuit court did not address the issue of the Former Wife’s expenses for income taxes either in its order approving and ratifying the Recommended Order or in its order denying the Former Wife’s motion for rehearing. Section 61.08(2)(h) requires that ‘in determining the… amount of alimony…, the court shall consider all relevant factors, including, but not limited to: [t]he tax treatment and consequences to both parties of any alimony award.’ ‘It is error for the trial court to fail to consider tax implications of an…award when such evidence is presented.’ Farley v. Farley, 800 So. 2d 710, 712 (Fla. 2d DCA 2001) (citing Miller v. Miller, 625 So. 2d 1320, 1321 (Fla. 5th DCA1993)). Here, the Former Wife presented appropriate evidence to the GM and to the circuit court concerning the income tax implications of the alimony award and her need for continued support in an amount sufficient to enable her to pay her obligations for federal and state income taxes. In calculating the Former Wife’s current needs, both the GM and the circuit court failed to account for the income tax consequences of the award to the Former Wife and the Former Wife’s expenses for the payment of income taxes.”
To speak with an alimony attorney in Palm Beach Gardens, FL, contact Matthew Lane & Associates, P.A. at (561) 651-7273.