During your divorce, you may have discussed the subjects of alimony and child support with your divorce lawyer. Both of these are types of financial support one spouse must pay another, but there are several key differences between them that you should know about. As you are working through your divorce proceedings, it is important to understand the following three differences between child support and alimony.
The Purpose of Each
Child support is a type of payment from the noncustodial parent to the custodial parent to help him or her financially support their children children. If you have kids and you obtain custody rights of the kids, your ex-spouse will most likely be required to pay you child support each week or month. The court calculates this amount based on both of your incomes, and it can often be garnished from a person’s wages to make sure it is paid. This money is designed to help you provide food, shelter, and clothing for your children.
Alimony, on the other hand, is a type of support designed to help provide for a spouse who earns significantly less than the other spouse. This money has nothing to do with the kids involved, and it can be awarded when a couple does not have children. It is harder to convince a court you need alimony in comparison to child support, and you will not even be eligible for collecting alimony if your marriage was short lived and if you earn about the same income as your spouse.
Tax Consequences of Each
The second big difference with alimony and child support involves the tax consequences of each. Child support payments you receive are not considered taxable income. This means that you do not have to report them on your tax return, and you will not have to pay taxes on this money.
Alimony is taxable income. When you collect alimony payments, you will have to report all of them on your income taxes, and you will have to pay taxes on the payments. Because of this, you may end up with larger tax liabilities at the end of each year.
You should also realize that your ex-spouse will not be able to write child support payments off on his or her tax return, but he or she will be allowed to write off alimony payments made to you.
Length of Time Each Must Be Paid During
The third difference to understand is there can be differences in the length of time your ex must pay each of these to you. When it comes to child support, most states require payments to be made until a child turns 18 to 21 years old. Each state has different rules, and the rules are different for kids in college and kids that are not in college. In either case, you can expect to receive child support payments until your children reach the age of 18 or so.
With alimony, there may not be a set amount of time a person must pay it, and every state has different rules. In most cases, alimony is a temporary form of support. It may last until you have had enough time to receive training for a better job, or it may only last until the divorce is finalized. Your ex may also have the right to ask the alimony to stop if you get remarried or have a significant positive financial change in your life.
Receiving alimony and child support can be helpful during and after a divorce, but these forms of support will not typically last forever. If you have questions about this subject, contact a divorce lawyer like Andrew H P Norton in your area to schedule an appointment.Read More