Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Alimony and Child Support

This is the eleventh installment of “Divorce. What You Need to Think About from a Financial Perspective“, which can be downloaded for FREE from makara-assoc.com.

Alimony versus child support. In terms of cash flow and taxes, these two terms alimony and child support can’t be any more different.

Child support is paid until the child reaches emancipation. Emancipation is defined in most cases as the age of 18 or graduation from high school, before the age of 19. This support is based on each party’s income and can be contested every 3 years in most states.

The amount of child support is determined by a standard calculation that factors in the following variables:

  • Mother’s income
  • Father’s income
  • Number of overnights the child has with each parent
  • Daycare and insurance costs

Alimony, on the other hand, can be for a fixed amount and/or fixed time period or continue for life of the paying individual. The issue of determining how much and what type of support you will receive in a divorce is beyond the scope of this eBook. This should carefully be discussed with a legal professional, along with all relevant facts available and knowledge of your State’s statutes.

Unlike child support, there is no formula to calculate alimony in the State of Florida. Alimony calculations are left up to the Court’s discretion. There are rules the Court must abide by, which are outlined in Florida Statute 61.08.

However, these rules are open to broad interpretation. Alimony may be granted to either party, and it may be rehabilitative or permanent. It  could be a lump sum, payments, or both.

BDivorceefore initiating the divorce process, it is important to consult with an attorney, as well as your accountant, so you are prepared legally and financially. If you would like to learn more about us go to www.makara-assoc.com and follow us on Twitter.

To read more about divorce planning click the eBook on the right and download it FREE from our website.

Have a happy and safe Halloween, watch out for the spooky ghosts and goblins.

Remember that divorce, alimony and child support can be pretty scary too! When you need assistance please feel free to contact us online or call (239) 384-9688 in Naples or (239) 768-5008 in Fort Myers.

-Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

 

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