When divorce happens and there are children involved, the court may order the "non-custodial" parent to pay a portion of his or her income as child support. This money is used for care in the upbringing of the child or children. This is very important because about 50% of all marriages end in divorce and about one-forth of children are born to unmarried parents.
Upon the court issuing a support order, the amount is automatically taken from the payer's paycheck. If the child support payments become delinquent, there are agencies that can withhold monies from tax refunds, or actually seize real estate or personal property.
Child support orders are issued by the family court under the state’s child support guidelines. The guidelines determine the amount of support that must be paid, based on the non-custodial parent's income and the number of children involved. Under the law, children have the right to benefit from both parents' incomes.
If an unmarried mother is looking for child support, the first step should be to determine if the man in question is in fact the father of this child. A paternity test should be done immediately. Once paternity is established, the court will issue a child support order.
If the non-custodial parent moves to another state, the custodial parent can depend on the Revised Uniform Reciprocal Enforcement of Support Act. This law will make sure payment of child support occurs -- A support order issued in one state can be enforced by the courts of another state.
When a married couple gets a divorce, the court may award "alimony" or spousal support to one of the former spouses. The purpose of alimony is to provide for any economic effects of the divorce by continuing to pay income to the former spouse who does not work or has a lower wage-paying job.
Unlike child support, alimony is not always awarded. The courts use The Uniform Marriage and Divorce Act to determine the amount of alimony to be awarded, if it should be awarded, and if so, for how long. The following factors are considered:
· The age, physical and emotional state, and the former spouse’s financial situation
· How much time does the recipient need to become self-sufficient
· How the couple lived while married
· The length of the marriage
· Will the payer spouse be able to support the recipient and himself or herself
Temporary alimony is given when the parties are separated, but the divorce is not final. The divorce is final, but it need not be.
Rehabilitative alimony is given to a spouse to rehabilitate her or himself in order to become self-supporting. This support can also be given to a parent who is helping raise the child at this time. It is expected that the parent should work outside the home when the youngest child is going to school full-time.
The order regarding alimony is usually subject to review. If the recipient wants the alimony to be reviewable in order to continue it, words to that effect should be in the divorce decree. If the payer does not want alimony to be continued beyond a certain time, this should also be written into the divorce decree.
Alimony should only be paid until the recipient spouse can become self-supporting. If there is no termination listed on the divorce decree, the payments will continue until the court orders otherwise. Most awards end if the recipient remarries. Today, it is not always the ex-husband who pays; sometimes the ex-wife must pay the ex-husband.
Courts sometimes award permanent spousal support. This happens when the spouse cannot become independent or self-supporting. The most common reason for this is when the recipient has a chronic illness and cannot provide for a reasonable standard of living without this support. This support will stop if the payer no longer can pay or the recipient’s status changes by remarrying or living with someone.
In some states, a spouse may pay the alimony obligation with a lump sum payment equal to the total amount of future monthly payments. If you accept a lump sum payment, you may be required to pay taxes on it if it is referred to as “alimony” in your divorce decree. However, if the same payment is called a "settlement," you may not be taxed. Do not sign any documents until you've consulted an attorney or accountant who specializes in divorce issues.
Alimony payments are tax deductible if the following requirements are met:
· You do not file a joint return with each other
· You pay in cash (including checks or money orders)
· You and your former spouse do not reside in the same home when you make the payment
· You are not liable to make any payment after the death of your former spouse
· Your payment is not treated as child support because child support cannot be deducted.
· Property settlements do not qualify as alimony.
· You do not have to itemize deductions to claim your alimony payments.
§ You may claim the deduction on line 34a of Form 1040.
§ You must provide the social security number of the former spouse receiving the payments. If you don't, you may have to pay a $50 penalty and your deduction may be disallowed.
· If you are the spouse or former spouse who is receiving the alimony, you must report the full amount as income on line 11 of Form 1040.
§ If you do not give your social security number to your spouse or former spouse who is making the alimony payments, you may have to pay a $50 penalty.