venice divorce

How is child support calculated?

Florida Statute 61.30 governs child support. The statute details what amounts are the full obligation for a parent when you look at combined monthly net income of both parties. For example, if the mother and father earn, after taxes are deducted, an income of $2,000 per month, the total child support obligation is $442 for one child. The table details amounts up to 6 children.

In paternity and divorce cases, the Circuit Court typically handles establishing a child support obligation considering the parties' parenting plan and schedule. In these Circuit Court cases, both parties' gross incomes (before taxes and deductions) are looked at. Then, allowable deductions, including dependency exemptions, the parents' health insurance payments, the parents' mandatory retirement contributions, etc., are taken from the gross income. After, we are left with both parties' net income (after taxes and deductions). The Court considers if either party is paying for the children's child care expenses, uncovered medical and health expenses on an ongoing basis, and the children's health insurance. The Court also uses what's called a "gross up" method to account for overnights of the parties. At the bottom of the calculation, we are left with both parties' child support obligations.

This blog post is informational and not intended to provide legal advice in any way whatsoever. This post does not create a relationship between the reader and Bouchard Law, P.A.

Tax consequences of divorce: Alimony

Alimony

For those who may be on the hook for on-going alimony payments, the word "alimony" may seem like a dirty word. However, many overlook the tax benefit of classifying payments as "alimony" versus something different, such as a property distribution.

Alimony is currently considered a taxable event meaning the recipient of the alimony is receiving taxable income. The alimony as paid is tax-deductible to the paying party, provided the settlement agreement does not state otherwise. This has been in the tax code since 1942.

But buyer beware! Tax changes are on the horizon. "Because of the new tax law, spouses paying alimony won’t be able to take a deduction while spouses receiving alimony will no longer have to report it as income..." reports the American Bar Association. Come 2019, alimony will no longer be a taxable event, which means no more tax deduction and more money flowing to the government due to the payers of alimony mostly being part of higher tax brackets.

Source: http://www.abajournal.com/news/article/new_tax_law_affects_alimony_could_spur_divorce_surge/

This blog post is not intended to provide readers with legal advice or tax advice in any way. This does not create a legal relationship or agreement between the reader and Bouchard Law, P.A. Bouchard Law, P.A. and its attorneys and staff do not claim to be experts in tax matters.  Bouchard Law, P.A. recommends consulting a tax professional to fully evaluate your tax implications and consequences of your particular position.