Child Support 101 in Your Divorce
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It is possible, and actually pretty easy, to calculate the amount of child support you will receive or pay. Simply go to this website and fill in the answers. There are some exceptions and nuances, but this will give you a good starting point.
http://www.courts.state.co.us/chs/court/forms/domestic/electronicworksheets.htm
There are some frequently asked questions about child support. This is not meant to be an exhaustive list, however.
“Is child support income taxed?” Child support is not a taxable event, it is not taxable income to the receiver or a tax deduction to the payor.
“I’m afraid to work because the child support will go way down.” It is constructed so that you are not severely financially penalized for working. It you earn $1,000 more per month, you child support might only be reduced (for example) $100.
“How does maintenance affect child support?” Notice that the more maintenance you receive, the less child support you receive, and vice versa. Maintenance is a taxable event.
“How does the number of overnights affect the amount of child support?” When the non-primary parent has 93 and above overnights, “Worksheet B” is used. For Worksheet A, the amount of child support is the same whether the non-primary parent has 1 overnight or 92 overnights per year. For Worksheet B, the number of overnights affect the amount of child support but sometimes in surprising ways. The only way to tell is to plug in the numbers and let the worksheet calculate it for you. “Worksheet A” is for 0 to 92 overnights.
“What if my spouse quits their job to avoid paying child support?” If you or your spouse could be making more money, the Court can “impute” income. This applies to cases of unemployment or underemployment. That is, say your spouse was the CEO of Totolinks, Inc. and made $150,000 per year. As the marriage is breaking up, he/she decides their true calling is being a cashier at the local health food store where they will make $24,000 per year. The Court could choose to use the $150,000 figure to calculate the amount of child support they owe. This is something for your lawyer to handle as it depends on employment potential, probable earnings, recent work history, prevailing job opportunities and earning levels in the community, etc.
“I’ll file a motion for child support when I get around to it. Is that okay?” If you want child support, be sure to file a motion or get an agreement as soon as possible. The Court doesn’t go back and order “retroactive” child support in marriages.
“Are their tax efficient ways to alter child support?” Child support is paid in after-tax dollars; this can be expensive money. One way to minimize this is to have the higher wage earning spouse pay some of the children’s expenses through maintenance.
Sat Tara Kaur Khalsa, M.S., L.P.C., copyright 2007 (303) 530-7080 divorce-success.com