When filing for divorce, it is important to be aware of the tax rules regulating spousal support and child support:
This is not included on a recipient’s tax return. It is also not deductible on the return of the ex-spouse paying child support.
This must be reported on the recipient’s tax return as income. It is deductible against the payer’s gross income.
If an ex-spouse pays less than the alimony and child support amounts ordered under the divorce degree, the excess over the total child support required will be what is considered alimony.
Variables to think about when negotiating child support and alimony terms:
· Your children’s age and how many years they will need to be supported with payments · Whether your spouse will want to petition you later on to lower support payment fees · How many years you were married · Which parent will be responsible for paying for your child’s education · Life and medical insurance payments
In California, child support payments are usually calculated based on established guidelines. A court, however, must still approve the support terms.
Payment guidelines include:
· Each parent’s income.
· How many children there are.
· Tax filing status for each parent.
· Whether there are other sources of support for the children.
· Education costs, daycare costs, other expenses.
· Health insurance.
For spousal support, each California county has its own formula for determining temporary support. A judge has to consider a number of matters when issue the final judgment for alimony, including:
· What each person needs.
· How much each person is capable of earning.
· How much support a person can pay.
· How long the couple was together.
· Any debts owed and property owned.
· Whether one parent must stay home to care for the children.
· How much one person contributed to building the other person’s career.
At Sagaria Law, P.C., we can help you in family law matters relating to divorce, child custody, child support, alimony, legal separation, grandparent visitation, adoption, division of property, paternity, and domestic violence. To schedule your free consultation, Contact Sagaria Law, P.C. today. We represent clients in San Jose, Monterey, Fremont, Carmel, Berkeley, Oakland, Los Gatos, Palo Alto, Foster City, Morgan Hill, and other cities in Monterey County, Santa Clara County, and Alameda County.
Divorce Settlement Scenarios, Monterey Herald, February 21, 2007
Related Web Resources:
Child Support, California Department of Child Social Services
California Courts: Self-Help Center