1. THE HOUSE TRAP - YOU STILL OWE ON THE MORTGAGE AFTER A DIVORCE!

Many people believe that signing a quitclaim deed giving up ownership of the house relieves them of responsibility for the house. This is not true! If your name is still on the mortgage after the divorce, you are responsible for the mortgage payments. The mortgage company or bank will sue you even if you no longer own the property! Therefore, if you must give up the house in a divorce, have your former spouse agree in the dissolution of marriage agreement to refinance the mortgage.

2. THE PENSION RIP OFF - WALKING AWAY FROM EASY MONEY

Many people have pension plans at work that entitle them to hundreds or evens thousands of dollars a month upon retirement. If your spouse has pension plan at work, you may have valuable rights to the pension plan under federal law. Specifically, if you can get the court to issue a QDRO (Qualified Domestic Relations Order), the pension plan must give you part of the money when your spouse reaches retirement age. Don't be ripped off by giving up these valuable pension rights.

3. THE CUSTODY RIP OFF

Don't assume you can always ask for custody later. Many people believe it is easy to go back to court and obtain custody of children. This is generally not true. In order to regain custody of your children after giving them up in a divorce, you must show that something "substantial" has changed that would entitle you to custody. Don't be "ripped off" because you thought you could always go back to court to get custody.

4. THE ADULTERY TRAP

When does adultery matter in getting a divorce? The fact that a spouse has committed adultery is relevant if alimony is requested by either the husband or the wife. (See Florida Statute 61.08). As a practical matter, most courts won't punish a spouse for adulterous behavior unless he has wasted income or the assets of the marriage. Therefore, do not fall into the trap of spending large sums of money on someone else without your spouse's consent. Also, be aware that adultery is a crime under Florida Statute 798.01. The punishment for this crime is 60 days in jail!

5. WATCH OUT FOR THE DAY CARE SCAM!

In a little known change in Florida's child support laws, the Florida legislature changed the child support statute (Chapter 61.30) to require that ¾ of day care cost be added to a child's "basic needs". This can increase child support substantially. Therefore, always monitor the cost of day care by getting receipts. Also, make sure that income, payroll taxes and unemployment taxes are being paid on nannies if you are paying for day care in your home.

6. WATCH OUT FOR THE INCOME TAX RIP OFF

There are several ways that a spouse can rip off another spouse by crafty use of the Internal Revenue Code:

• Never give up the right to deduct your children on your tax return (Form 8332) unless you get something in return.
  
  
• When you buy a house on credit, make sure your social security number appears on the loan documents. This way, you can take the mortgage interest deduction, not your spouse.
  
  
• Never agree to file a joint income tax return with someone who doesn't make tax payments or have taxes taken out of their paycheck! Since people who file returns together are jointly and severally liable for taxes, the spouse with "W-2" earnings and income tax withholding gets "ripped off" by the self-employed spouse who doesn't pay taxes through the year. If you file jointly, you're responsible for your spouse's taxes even though you've already paid taxes on your own income.
  
  
• Pensions. If you receive part of your spouse's pension in a divorce, you'll owe taxes on the money. (Don't turn down the pension because of this but keep in mind that you owe income tax on any money you get through a pension plan.)
  
  
• If you receive rental property for which a deduction for depreciation has been taken for tax purposes, watch out. You are responsible for tax on "depreciation recapture" when you sell the property.
  
  
• Also, if you receive raw land or another asset (such as stock) that has appreciated in value since it was purchased, you must pay a tax on the gain when you sell the property. Moral? Always consider the tax implications on any property or stock you receive in a divorce settlement.
  
  
• Beware of credit card companies that offer to write off your balance. Under the law (26 U.S.C. §6050P), you will receive a Form 1099 for the amount written off and must include this amount on your income tax return.
  
  
• In a major victory for the Internal Revenue Service, the U.S. Supreme Court, in the famous case of United States v. Sandra Craft, ruled that the Internal Revenue Service can place a lien against "tenancy by the entireties" property owned by a husband and wife even if only one spouse owes back taxes. Moral? Always make sure your husband's taxes are paid in full if you own a house with him.

7. BANKRUPTCY/DIVORCE RIP OFFS (HOW BANKRUPT PEOPLE DUMP DEBTS ON UNSUSPECTING SPOUSES AFTER THE DIVORCE.)

• Watch out for the number one bankruptcy trick: Agreeing to pay for credit cards and other debts in a divorce settlement agreement and then declaring bankruptcy after the divorce. This causes the debts to go right back on the innocent spouse.
  
  
• Many spouses get possession of a home in a divorce and then declare bankruptcy. This rip off is one of the worst as the spouse who has no access to the house is nevertheless forced to pay the mortgage because bankruptcy stops all actions to collect against the spouse in the house. (There are exceptions to this rule. See us for details).

Moral to the story: Watch for signs of bankruptcy filings and if in doubt, tell your lawyer about it. There are several easy steps your lawyer can take to immunize you from the bankruptcy rip offs. For example, since child support and alimony are not dischargeable in bankruptcy (this means the debts have to be paid no matter what), ask the judge to give you alimony or child support. Always assume your spouse will breach his agreement to pay bills. Protect yourself.

8. MORE DIVORCE RIP OFFS TO AVOID

• Title insurance rip off. Always get title insurance on any home or property you get in a divorce. This will insure that you own the property and can sell it to someone else. Don't wait until years later to correct title defects!
  
  
• Watch out for Income Deduction Orders. They are now mandatory. Income Deduction Orders (requiring money come out of a person's paycheck) are now mandatory under Florida Statute 61.1301.
  
  
• All payments for child support should go to the Clerk of the Court or the State of Florida Disbursement Unit. Do not make direct payments as you might not get credit.

9. WHAT TYPES OF JOBS ARE CHILDREN NOT ALLOWED TO HAVE?

People under 18 cannot work in the following jobs: near radioactive materials or explosives, on roof or ladders over six feet tall, around toxic substances, in mines, near electric woodworking or metal forming machines, in meat packing plants, around electric baking equipment, around printing machines, in logging or sawmills, in fire fighting, working on electric devices or wiring, lawn mowers with 40 inch blades, driving a vehicle except farm tractors (under the law, 14 year olds can drive tractors!), in oiling or cleaning any machinery, in repairing elevators or working in freezers, spray painting, alligator wrestling or working in snake pits, door to door sales of magazines (See Florida Statute 450.061).

10. INVESTMENT HINT

• Always fund your IRA (Individual Retirement Account) early: you'll earn thousands more in interest over time. Your 2002 IRA should be funded NOW, not next April. This gives your money that much more time to compound and pay for your retirement.
  
  
• Beginning in 2002, the IRA contribution limit for people under age 50 is $3,000.00. For those over 50, special "catch up" rules allow additional contributions.

Remember the social security trust fund has no money in it. Instead, the fund consists of non-marketable federal bonds. Social Security will be in a deep crisis long before most baby boomers collect a dime.

11. WHAT ARE THE MOST IMPORTANT THINGS PEOPLE LOOK FOR IN A LAWYER?

• Promptness in taking care of matters.
• Interest and concern about client problems.
• Honesty in dealing with client.
• Explaining matters fully to client.
• Keeping their client informed of progress of the case.
• Paying attention to what the client has to say; and
• Fair and reasonable fee.

We at Fisher's Law Office, P.A., always strive to meet these goals. Service is our business.

12. FLORIDA RULE OF FAMILY LAW PROCEDURE 12.285 MAY NOT BE THE LAW!

Generally, parties have a mandatory requirement to file Financial Affidavits even in simplified divorce cases. However, in the famous case of Varrieur vs. Varrieur, 775 So.2d 361, the Florida Appellate Court ruled that "a party may waive the filing of a Financial Affidavit in a simplified proceeding for divorce under Rule 12.105 by failing to object at trial." The court went on to state that such a waiver will be upheld where there is no showing of prejudice and the record demonstrates competent substantial evidence that supports the final award. Citing Vaccaro v. Vaccaro, 677 So.2d 918 (Fla. 5th DCA, 1996).

In the Varrieur case, neither party had requested a Financial Affidavit or objected to a trial taking place where none was filed. In addition, the distribution of assets was considered fair and under such circumstances, the Appellate Court found that Financial Affidavits could be waived. In another case cited as Salczman v. Joquiel, 776 So.2d 986, (3rd DCA, Jan. 17, 2001).the Florida Appellate Court held that if a court is not called upon to award any permanent financial relief to a party, Financial Affidavits are not required and are irrelevant to the proceeding (see Salczman, page 988).