June 9, 2009
Child Support Payments Can Vary Greatly
Question of the Week: I have two children from two different relationships and I am paying $200 for the first child and $560 for the second. How is this possible? If one judge decided the amount that I can afford is $200, the other one shouldn’t have set a payment of $560. Can I ask for a modification of the second, more expensive order?
To answer both questions, yes it is common to have different amounts set by different judges at different times. And yes, you can ask for a change in the order in which you pay $560.00. Generally speaking, with any changed circumstances you can always modify your child support order.
However, I have listed some factors to consider before seeking a modification of the larger support amount:
1. If you are earning more money now than when the first order was made, or if the opposing parent is not working or making less money, your obligation can potentially increase and not decrease.
2. Additionally, the amount of time that you spend with the child also makes a difference in terms of how much money you will pay. So if you are spending less time with the second child, or if the other parent will say in court that you are spending less time than you originally agreed, you run the risk of paying more support than receiving a reduction.
3. Changes in the other parent’s income will impact the payment amount. Also, because our child support system is a tax based system, payments on a new mortgage payment will decrease your tax liability and increase your cash flow. So if you are now making interest payments on an mortgage, your child support obligation could increase!
So if one child is receiving more then the other child, then that is something that the court will take into consideration. It is possible that you might be able to secure a reduction. But it is unlikely that you’ll get the higher payment down $200, so your ‘savings’ are not going to be much. And it is possible that the judge may increase it!
It is really be important to discuss support payments with an attorney to see if a reduction attempt is going to be worthwhile.
By the way, it is likely that the first support payment amount of $200 is far lower than the court would now set – if the other party asked for a review. Be very happy that your exs don’t talk.
March 31, 2009
Divorce and Claiming the Kids on Tax Returns
My wife and I are separated and I want to claim the kids on my tax return because I am the higher earner. Can I do this??
It depends….normally the parent who has the children more than 50% of the time is the only one who can claim the child on their tax return and claim the Child Tax Credit.
However if the kids spend the same amount of time with BOTH parents, then it is probably more beneficial for tax purposes for the parent with the higher income to claim the children, therefore clearing more income for support.
Also, the ex-couple can decide to SHARE the tax exemption if there is more than one child. If there is just one child they can alternate years for using the tax exemption.
As I always tell my clients, where there’s a will there’s a way. If the time-share is pretty close it may be beneficial to share the exemption, or allow the higher earning person to claim the children and the other parent receive extra support.
Child Support in California 