Articles Posted in Child Support

Trump’s administration has recently made several changes to current tax laws and among many other areas, the tax implications of divorce have been greatly affected. If there has ever been a time to “hurry up and get a divorce” it may be now.

A change in the new tax laws will eliminate a major break that many often took into consideration when contemplating divorce. That is the ability to deduct alimony or spousal support payments on your taxes. Any divorces finalized after December 31, 2018 will no longer receive the benefit of this tax deduction, which is why countless lawyers and financial advisors are warning clients who are contemplating divorce to act fast.

Agreements signed before the end of the year will still qualify for this deduction, but this can have huge financial implications when one party earns significantly more than the other. For decades, individuals paying alimony or spousal support to a former spouse were able to deduct the payments from their taxes, which often prompted the paying spouse to pay slightly more than they normally would agree to. This could have a huge impact on the paying spouse especially when there is a large gap in income between the two parties. According to the IRS, a staggering 600,000 Americans claim this deduction.

There are many costs to divorce, including the obvious costs of attorney fees, court filing fees, support payments, etc. However, many people often overlook the significant costs associated with maintaining two households, versus one. A recent article on SF Gate addressed the significant costs associated with physically separating including obtaining at least one or two new residences, furnishing those residences, moving, and maintaining the costs for said residence, without the benefit of two incomes. In some cases, given the extremely high cost of living in California, and particularly the Bay Area, this can be almost impossible. As such, it appears that many people are choosing, or being forced, to remain living together, despite a separation or actual divorce.

https://m.sfgate.com/mommyfiles/article/live-in-divorce-San-Francisco-separation-cost-12770531.php

The costs associated with living separately can have a significant effect on a couple’s divorce case and can be a factor when determining spousal support, child support and property division.

When going through a divorce, the best case scenario is that everyone remains amicable and the need for litigation is avoided.

However, if litigation is inevitable, both sides at least want to try to come out of the process financially secure. These are common mistakes, all of which are avoidable, but all of which almost always end up costing you when going to court:

1. Going to court without a lawyer

President Trump’s tax reform bill, which was recently signed in to law, includes many changes to the United States Tax Code.

Some of those changes will in all likelihood directly affect California Family Law cases including divorce cases, custody cases and support cases. Child support and spousal support are two of the significant areas of Family Law likely to be affected by the new tax changes. Specifically:

Child Support: Currently the California guideline child support calculator uses a number of factors, including each parent’s tax bracket, filing status, deductions, including mortgage interest and property tax deductions, and personal exemptions to determine the amount of child support owed. Under the new tax laws, nearly all of those factors have been modified. The tax brackets have been revised such that many people will enjoy a lower tax rate. Additionally, the standard deduction has roughly doubled for all taxpayers. However, the personal exemption for the taxpayer, his/her spouse and children, has been eliminated. Additionally, the amount that can be deducted for mortgage interest has been reduced to include debt of up to $750,000, down from $1M. All of these changes may affect how much a supporting parent could have to pay for child support.

Becoming a single mom in your 30s might sound like everyone’s worst nightmare.

You have married the man that you thought would be your partner forever, you have a young child or even several children at this point and you are faced with the prospect of a divorce. All of the usual thoughts run through your head: How will I raise a child on my own? How will I explain to my young children that mom and dad no longer want to live together, how will I meet someone new?

While all of these questions can be very daunting and scary to face, as one single mom put it, she was no longer stuck in the “birdcage” that had become her marriage and was able to discover her own happiness in the face of divorce. This was not only incredibly important for her, but for her child as well. She was able to become the best mother she could be to her young toddler without worrying about the unintended consequences of a high conflict relationship. She could face her 40s and a new relationship without all of the pressures many feel throughout their 30s to get married and have children. That gave her a sense of peace in raising her son and taking her time to find an ideal partner before committing to a new partner

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