Law Office of Joanne Kleiner

Amicable Divorce Attorney

Archives for January 2019

Jan 18

Common Reasons for Child Support Modification Orders

Why a Judge Would Modify a Child Support Order

On average, a noncustodial parent pays $430 per month in child support, but this amount could be higher or lower. It would depend on various factors such as your income, the number of children you have or whether a child has special needs. If your financial situation changes, it’s also possible that your payment could increase or decrease.

A Modification Could Occur If a Parent’s Employment Status Changes

Losing your job could be grounds for having a child support order modified. This may be true regardless of whether you are the custodial or noncustodial parent. In such an event, a judge might look to see whether you have any other assets that could be liquidated in an effort to make payments as currently ordered.

Conversely, if you were to see an increase in your pay, it may be possible that your child support obligation would be increased. If the other parent got a new job that came with a higher salary, he or she could be asked to accept more of the financial burden of raising a child. In that case, your payment could be decreased.

Unexpected Medical Expenses Could Result in a Modification

If you were to become ill, it could mean thousands of dollars or more in out-of-pocket medical expenses you didn’t budget for. That cost could have a negative impact on your ability to provide for your child. While you should still make an effort to provide to the best of your ability, a judge may nevertheless agree to modify an existing child support order due to your circumstances.

 

A child support attorney may be able to further explain how medical bills could impact an existing order. In the event that your child becomes ill or has medical needs that must be paid for, you could be asked to contribute more money each month until those needs subside.

Child Support Can Be Modified If Parental Roles Change

In the event that you start spending more time with your child, it may be possible to ask to pay less in child support. This is because the state generally recognizes that housing and feeding a child and otherwise meeting immediate needs are valid forms of support.

Of course, there is no guarantee that this will be true in your given case. As with any other matter pertaining to child custody and support, the best interests of the child are the primary concern. Therefore, if a child needs the additional financial support, he or she will be allowed access to it.

If the Other Parent Receives a Financial Windfall

In addition to getting a job with a higher salary, there are other ways in which the child’s other parent could see a positive change in financial circumstances. For example, he or she could receive an inheritance from a parent or win the lottery. This could mean that you will be granted the opportunity to pay less in child support each month. In some cases, a personal injury award could also have an impact on child support payments, and your family law attorney can help answer any questions you have on that topic.

Alterations When the Child Is About to Turn 18

Assuming that a child does not have any special needs, your obligation to pay child support generally ends when your son or daughter turns 18. In Pennsylvania, you typically have to request that a support obligation be terminated at least six months prior to this taking place. You should be aware that you may be obligated to help pay for college tuition or other costs in certain cases even after a child reaches the age of majority.

If you need a child support attorney to help with your case, contact the Law Office of Joanne Kleiner today. This can be done by calling our office in Jenkintown at 215-886-1266. You can also send a fax to 215-886-2670.

Jan 15

What to Know About Alimony in 2019 and Beyond

How Alimony Will Change in 2019

When alimony is involved, separating partners spend an average of $17,700 to settle their divorces. This is a sizable amount of money that can help keep one spouse afloat while putting a significant dent in the checkbook of the other. However, it’s important to know that there are many tax-related factors to consider beyond alimony payments when creating a divorce settlement.

How Does the Tax Change Impact Alimony Payments?

Starting on the first day of 2019, recipients won’t be able to declare alimony payments as income on a tax return. While this means that you don’t have to pay tax on the money, you also don’t get to use it to contribute to an IRA. Furthermore, it can’t be used as qualifying income for a loan or line of credit. If you’re the person paying alimony, it no longer qualifies as a tax deduction. Therefore, you may be less inclined to make as large of a payment because there is no benefit in lowering your overall tax burden.

There Is No Change for Those Who Divorced Before 2019

It’s important to note that if you divorced before the start of 2019, you’ll consider alimony received as taxable income. If you make alimony payments, you’ll still get to take a tax deduction for making them. If you have a prenuptial agreement that was created before 2019, it may be possible to use the old rules when accounting for spousal support. However, be sure to consult an attorney prior to determining how these or other exceptions may apply in your case.

 

How Could Tax Changes Influence Other Parts of Your Settlement?

Your attorney will likely point out that changes to the tax law related to alimony won’t necessarily prevent you from getting a positive settlement. Instead, it means that it will be necessary to craft a new strategy to obtain the financial resources needed. For instance, you could ask for a greater portion of a marital asset such as money inside of a retirement account. You could also ask for a greater share of the proceeds from selling a home or other valuable assets.

Don’t Forget About Tax Credits Available

Even if you receive less in alimony than you would have by finalizing a divorce in 2018, other changes to the tax code could help make up for that loss. For instance, the child tax credit could result in up to $2,000 per qualifying child going to your bank account. Since a credit reduces your tax liability for each dollar the credit is worth, you could obtain a refund if it results in a negative tax balance.

Other credits or deductions may be available for parents who claim head of household status. Head of household is generally available if you contribute more than 50 percent of the cost of running a home that a child occupies more than 50 percent of the year.

Compromise Is Key When Crafting a Divorce Settlement

It is important to know what you need, what you want and what you can live without when it comes to negotiating a divorce settlement. This can work to keep your divorce costs to a minimum. Furthermore, it can keep relationships strong between ex-spouses who may work together or have kids.

Your divorce attorney may be able to help when it comes to creating a list of priorities prior to the start of settlement talks. Recipients should know that alimony is partially based on your ability to pay or your ability to provide for yourself on a single income. Therefore, it is important to structure alimony payments in a manner that both sides can be content with.

If you need assistance negotiating a divorce settlement involving spousal support, get in touch with the Law Office of Joanne Kleiner today. This can be done by calling our Jenkintown, PA, office at (215) 886-1266 or by sending a fax to (215) 886-2670.