Not every relationship ends well and 40-50% of all end in divorce. Whilst this means your communal life together may have ended it doesn’t mean that your financial life together ends as well. Often there are things in place that mean you have to continue to pay things together, for example, a mortgage until the house is sold. If you have children together then you will always be in each others’ lives for the benefit of those children, whether that be making the right decisions for them or ensuring they have the best upbringing.
Money is usually the main conversation and it’s important to understand the difference between child support and alimony.
What Is Child Support?
Simply put, child support is a payment made to help raise children when parents become separated. The parents that have main custody of their children is usually the one that will receive the payment as they spend more time with them and will have more need for things such as childcare. Child support payments will end once the youngest child has reached a certain age, which is usually 18 or 21. There is no tax deduction for child support and the person receiving the payment won’t have to pay income tax on this money either.
What Is Alimony?
Alimony is also known as spousal support and consists of a payment made regularly from one to the other after a divorce is final. This is to ensure the same standard of living is maintained after divorce. This form of payment is usually involved when one person makes more money than the other, the higher earner will pay alimony.
Unlike child support, the person paying alimony is usually unable to claim this form of payment as a tax deduction, and the person receiving is generally not required to report them as a taxable income.
What’s The Difference?
The main difference between the two is the intention of use from each payment. Child support is designed for the benefit of the child. It’s used for things such as child care, medical care, housing, food, and clothing, whereas alimony is used for the benefit of a spouse.
However, both child support and alimony are in place as components to help both parents become financially separate from each other which is why it’s essential to understand them and how they help. As it’s a long and often difficult road to navigate it’s always best to get advice from a professional. When talking with a Rock Hill divorce lawyer they explained that this might be the first time you’ve needed the support of an attorney and you might not be informed as to the information you need to help you through. This is why it’s imperative to hire someone that specializes in the field and will help you get through your divorce in the best possible way and help you avoid any potential obstacles.
How Much Child Support Should You Pay?
This is dependent on if child support is court-ordered and the amount will be decided through state law and finalized custody agreements. In some cases, if both parents earn a similar amount then there might not be any need for child support payments. It can also be based upon the number of children you have together and the income of the non-custodial parent’s income.
The length of time someone will pay child support is also dependent on state law and each parent’s income status. Some states may order child support until the age of 18, and in some situations, it could be ordered that college tuition is paid for.
How Much Alimony Should You Pay?
Because this is paid for the upkeep of a person’s lifestyle it can change dramatically due to the situation. The courts will use a number of different attributing factors to help decide how much will be paid. Usually, this will include the income of both parents, their individual living expenses, the assets given to each post-divorce, the length of the marriage, and both their ages.
If the situation changes in the future then the alimony payments can also change. Loss of job is a common change of situation and can result in alimony payments being reduced or terminated.
Divorce isn’t an easy situation and it’s one of the most stressful things you can go through in your lifetime. The best thing to do is hire an attorney to help you through the situation and ensure that your children have the best life they can and that you aren’t out of pocket. Don’t suffer by not understanding.
