When tackling a divorce, you might worry that some of your top priorities might get swept under the rug. For instance, balancing your future financial independence might conflict with fairness toward your spouse and his or her own financial future.
Tackling child support can also make people uncomfortable during a divorce. Trying to decide on how much is enough and how much might create financial difficulties can feel frustrating. Here are a few considerations Forbes recommends keeping in mind.
Tax consequences
Recent tax changes in the past few years put child support payments outside of the tax system. Payors no longer have the opportunity to deduct child support payments from their taxable income. Similarly, the parents receiving child support may not need to pay income on this money.
Relation to other payments
Courts treat child support as more important than spousal support. Because of this, if you owe money on both child support and spousal support, the courts generally attempt to collect on the child support payments first. Similarly, when calculating spousal support and child support payments at the onset, child support gets prioritized.
Potential for modifications
Under some circumstances, you have the opportunity to modify child support orders. These attempts are not always successful, but the option is available. One reason you might want to have the courts recalculate child support is a change in the living arrangements. For instance, you might have taken on more parenting responsibilities while the other spouse goes back to school or the child may have chosen to move in with you instead.
Child support payments help ensure that both parents contribute to the expenses necessary for raising happy and healthy children. During a divorce, keeping this in mind might help to quell any feelings of resentment toward the receiving spouse. However, it is also important to remember your own financial health for the years ahead.