What Can And Cannot Be Considered As Income For Child Support

Posted by: Gerald A. Maggio, Esq.

child support attorney Orange County; The Maggio Law FirmDivorce is always a difficult period for the couple going through the procedure. The proceedings, however, are much harder if there are children involved. Children below the age of 18 are involved in the unpleasant business of divorce despite their unwillingness. Divorce settlements often do not proceed smoothly especially when there are issues revolving around child support. Debates often arise when it comes to calculating the percentage of an individual’s income that goes into child support. Confusions can also arise when it comes to determining the type of income that can and cannot be considered as child support.

Income considered as child support

Generally, income is a broad term that encompasses the monetary benefits an individual attains from work, pensions, dividends, rental properties, trust funds, and so on. When it comes to divorce settlements for individuals who own businesses in Orange County, California, income is calculated by subtracting the expenses incurred in the business from the gross revenue generated by the business. Courts may also extend the calculated income to include any monetary benefits that are instrumental in reducing the living expenses of an individual.

Recent laws also classify financial gifts received from an individual’s parents as income.

Details on how much of a person’s income actually goes into child support are explicitly stated under the California Family Code Section 4050. Usually, the amount that goes into child support is calculated by taking into account the incomes of both parents, the time the child spends with each of the parents, and any tax reductions that are applicable. An estimate for the amount to be paid can be calculated using the California Guideline Child Support Calculator that is based on California Child Support Guidelines.

Income that cannot be considered as child support

Deciding income that cannot be considered as child support is a difficult task. It varies according to state laws and sometimes according to what the court decides. Despite uncertainties, there are certain types of income that are not eligible to be considered as child support according to Orange County laws. Benefits arising from life insurance policies, any income that is speculative, stock options that cannot be liquidated, and settlements from disputes relating to personal injury cannot be considered as income for child support. Gifts like cars and household items that are not monetary in nature are not considered income. These are a few situations where the resulting monetary benefits are not considered an actual stable income. Each of these situations is subject to change depending on the final decision taken by the Court.

Getting divorced in California can be complicated!  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

Why Do You Need To Have An Agreement For Legal Separation?

Posted by: Gerald A. Maggio, Esq.

Orange County divorce lawyers; The Maggio Law FirmMany legal experts feel that when a couple decides to separate, they should have a proper agreement on legal separation. After an agreement is signed by a judge, the couple will get a temporary order from the concerned courts it is an order that mentions the responsibilities of both the parties while they live separately and prior to the finalization of their divorce. However, if the legally separated couple does not want to proceed with the divorce, either party can as, their divorce lawyer to keep the divorce on hold.  But even while being legally separated, the spouses can enjoy similar legal protections, courtesy to that temporary court order in states that allow legal separation. Here are some of the reasons why it really makes sense to have an agreement while being legally separated.

For setting up a schedule for child visitation

When you have kids from your marriage, it is imperative to fix a schedule for the visitation of the other parent though you live separately. An agreement for legal separation can define such a schedule and also outline who will have access to the kids when they are in the custody of your spouse, where the kids will reside if they are not given to you Andorra they can travel or not even though you will not give consent to do so. Thus, such an agreement can help you to protect your parental rights.

When you need child support

In case there are children, you can only demand the child support with the help of a court order. When the state where you reside permits legal separation, the calculation for the child support can be done as per the child support guidelines of that state and becomes a part and parcel of the legal separation agreement between you and the other parent.

When there is big conflict between you and your spouse

When your spouse and you are having high conflicts and it is not possible for both of you to have a healthy dialogue with one another, such an agreement will highlight what should be expected from both of you while you are legally separated. When such clauses are mentioned in your legal separation agreement, further conflicts can be avoided and communication between the two of you will be better.

Low trust factor

When you are not sure to trust your spouse’s verbal commitments, a legal separation agreement can come to your rescue. Such agreements can be witnessed and signed by an unbiased third party or even a judge and can be produced in a court if your spouse violates any clause therein.

Getting divorced in California can be complicated! Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

3 Things You Must Know About Child Support

Posted by: Gerald A. Maggio, Esq.

child support attorney Orange County; The Maggio Law FirmAs you and your spouse are all set to divorce one another, one crucial consideration that both of you have to make is how your kids will be looked after you part ways. Here are a few things that you should know about child support.

Financial support for the kids

If you have dependent kids, you and your spouse must support them financially according to the requirements made by the law. As long as parents live together in a marriage, both of them support their children together. But when the couple divorced, they often are in an arrangement according to which a kid lives mostly with only one parent.

The parent with whom the child lives is referred to as having got the custody of the kid. Such an arrangement for children can be documented in a court order, which us known as legal custody at times or in their separation agreement. But the arrangement can also be decided without any court order or documented agreement. This is at times known as “de facto” custody. Whatever may be the way the agreement is done, the parent who has the custody has the primary responsibility for taking care of the child on a day-to-day basis and for incurring the ordinary expenses needed for bringing up the child. However, the other parent needs to help with such expenses. He or she can do so by giving money to the ex-spouse who has the child’s custody. This is what is popularly called child support.

Parents

A parent refers to biological father or mother, a step-parent or even an adoptive parent. A step-parent who once got married to a person with kids and has demonstrated an intention to consider those kids as members of her and his family is considered as a parent too.

Whose responsibility it is to pay for child support?

It is a legal responsibility of all parents to provide support for their dependent kids as much as it is in their capacity to do so. A parent who has been awarded the custody of the children by court typically had to incur a majority of the daily expenses for raising the kids. He or she may be eligible to get child support from the other spouse. The court may allow this child support to continue even in certain cases when the custodial parent decides to remarry or lives with a different person.

How much amount will be pride to the parent with custody is typically decided on the basis of the guidelines for child support. Sometimes both the parents may have the legal responsibility to pay for child support for the same kid. For instance, in case a parent who got the custody decides to separate from their common-law spouse who is not the biological parent of the kid or marriage, the other birth parent of the child and the said step-father could have a legal obligation to pay for the support of the child.

Getting divorced in California can be complicated!  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

What Role Does A Parent’s Income Play In Child Support?

Posted by: Gerald A. Maggio, Esq.

child support attorney Orange County; The Maggio Law FirmDuring a divorce that involves children, one of the parent ends up having custody over the children while the other parent pays a certain amount as child support. It is important that parents earn a substantial amount of money each year for child support. Parents with low income have often found themselves losing child custody battles. In some cases, child custody has been awarded to a third party due to low income by both parents.

Calculating the amount for child support

It is very important that parents calculate the amount of child support they need to pay. Parents should first work out where and with whom the children will live. Once that is sorted out, both parents should decide on a certain amount that must be paid for child support. The parent who loses custody battle usually become the primary child support payer. It is usually the parent with the higher income.

To calculate the gross annual income, parents need to look at their income tax return and the amount that is given. It will give a fair idea of what each parent earns in a month. Additionally, they should contact the Department of Child Support Services to help them chalk out the best plan for child support if they want their county to help seek and enforce a child support order.

During a shared parenting arrangement where the child has lived with both parents equally for a year, the paying parent becomes one who earns more. The child must have spent at least 30% of his/her time with each parent before the parents can be termed as joint custody.

Split parenting can occur when there are more than two children involved and when each parent becomes the primary caretaker of each child. In such cases, it becomes the duty to each parent to contribute equally for child support. But that again it depends on the annual income of each parent.

There are many child support calculators available online and the best ones are DissoMaster and XSpouse.

Conclusion

Parental income is very important for child support decisions because it determines how much each parent should pay for supporting their child. A child support calculator considers important factors like annual salary and expenses and determines the exact amount for each parent.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

The Concept Of ‘Jackson Credit’ For Child Support In California

Posted by: Gerald A. Maggio, Esq.

best divorce attorneys in Orange County; The Maggio Law FirmThere have been instances in California divorces where one parent has ended up giving 100% of his/her time for child support despite having child custody. Usually, the parent who takes care of the child for the majority of time should pay less but in some cases the reverse took place.

The ‘Jackson Credit’ became applicable after the famous Jackson v. Jackson case.

The Jackson v. Jackson case

In the Jackson v. Jackson case, the mother charged the father with child support defaults when the child had been living with the father for 100% of the time.  Initially, the trial court supported the mother saying the father attempted to change court orders for child care support. However, when the father appealed, the court said that even though the law does not allow an individual parent to make changes in child care support rules, the father fulfilled his obligations for child support.

What is a Jackson Credit?

A Jackson Credit is granted to noncustodial parents who prove that during their custodial time, they paid their share of the custodial support. Courts allow child support credits to parents who take care of the child and provide child support as well. It saves one parent from substantial financial damage that can be incurred.

When can a Jackson Credit be claimed?

During arrears calculation, a non-custodial parent can claim a Jackson Credit for the time he/she spent with the child when he/she was not supposed to. Parents who can provide evidence that the child was under his/her protection for 100% of the time, are eligible for Jackson Credits. In many cases, parents who have failed to show proper evidence have been barred from receiving a Jackson Credit. Knowing how the credit system works can help save unnecessary financial loss. It is therefore important to talk to an attorney first before proceeding with the Jackson Credit.

Conclusion

The Jackson Credit is applicable for parents who have paid for child support despite giving 100% of their time for child care. The credit system has been established to help parents save themselves from financial losses. The Jackson credit was created after a famous case that involved a mother demanding child support from a father even when the father had been taking care of the child the entire time.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.

What To Know About Child Support While Divorcing Your Spouse

Posted by: Gerald A. Maggio, Esq.

best divorce attorneys in Orange County; The Maggio Law FirmIrrespective of whether the parents were legally married or not, they have a responsibility to support and look after their kids. If a marriage or a marriage-like arrangement has come to an end, the custodial parent is supposed to get paid by the non-custodial parent by the order of the court.  Both parents have the obligation to support their children.

Custodial and noncustodial parents

A custodial parent refers to that parent with whom the kids live for all the times or for a majority of the times post the divorce. On the other hand, a non-custodial parent is awarded access or visitation rights that may or may not include a specific number of night’s stays every month or week as decides by the judge,

Guidelines for child support

When there is only one custodial parent, which usually means that the kids stay with the parent for over 60 percent of times, the concerned state determines the child support’s base level for one or multiple kids. These guidelines aim to cover essentials such as public education, healthcare, clothing, shelter and food of the kids a parent is taking care of.

Both the parents may come to an agreement on payment of certain special expenses apart from the amount awarded as per the guidelines of the child support for the state where the kids are residing.

These extra expenses must be regarded as reasonable and essential by both the parents; essential since they should be in the best interests of the kids and reasonable with respect to the incomes of both the parents.

How long should the noncustodial parent pay for child support?

Child support is typically payable till the time the kids complete their school level education or are considered emancipated, The latter could mean attaining the age of getting married, becoming an adult, drop out of their school or leave home. Child support usually continues in case the children will go to a college and until they get their college degree. There are some instances where the judges directed to continue child support until the child obtained the Master’s degree. You should ensure that your divorce agreement clearly mentions until what time the child support should continue.

If the divorced parent has a special-needs child from their marriage who has to reside with one of the parents for the rest of their life and is dependent on that parent, the court may order the non-custodial parent to provide permanent child support. Situations like these could be complicated ones. So, you should ensure to avail sound financial and legal suggestions prior to getting your divorce agreement finalized.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.

Calculating Child Support And Alimony In A Divorce

Posted by: Gerald A. Maggio, Esq.

Orange County divorce attorney; The Maggio Law FirmManaging finances during divorce is a skill every individual who is heading for a divorce needs. It’s better to be mentally prepared for a financial loss than be unprepared at all. First there is the question of property. If you’re someone who has accumulated a lot of wealth during your marriage, then brace yourself for some financial damage unless you claim most of them to be a separate property. Next, if you and your spouse have considerable difference in terms of earnings, you might end up paying a certain amount as alimony. And lastly, if you have children and you lose the custody battle, then you will have to pay for child support too.

Managing finances can be a tough job and that is why you need the help of an expert divorce lawyer. To try to limit financial hardship, calculate your expenses prior to the divorce proceeding.

Calculating child support

Child support is the money you pay for your child’s education and welfare till he/she turns 18. In few cases, the support can continue till the age of 21. The amount that you need to pay for child support depends on many factors. Your annual income plays a deciding factor and so does your ability to take debts. If you’re the non-custodial parent, then prepare yourself to pay more than your spouse. Other important factors which the court will look at is the age of your child and who is paying for the health insurance.

Calculating Alimony

Usually alimony is calculated after child support. The court will look at your financial capability to support your spouse after you have paid for child support. Unlike child support which is based on what is good for the child, alimony calculations are based on how much you can provide to your ex. Factors like income, property and child support is taken into consideration while calculating alimony.

Conclusion

It is important to manage your finances during divorce. It should be done through an experienced divorce lawyer because it not unusual to lose a lot of money during divorce and only a lawyer can help you take the best decision. Calculating your alimony and child support expenses will help you make good decisions regarding finances. Bankruptcy is one of the major pitfalls of divorce and good financial management is only way to survive it.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

Child Support Payments After Loss Of Employment

Posted by: Gerald A. Maggio, Esq.

Divorce attorneys in Orange County; The Maggio Law Firm, Inc.A divorce is in itself a complicated process and becomes more complicated when children get involved. The first issue that arises is child custody. Since, only one of the two parents can become the primary caretaker of the children, it becomes a dilemma. The next issue that arises after the custody of children has been established is that of child support. Usually, the other parent pays more for child support than the one who is taking care of the children. In maximum cases, the two parents consult a lawyer and establish a parenting plan that also includes the amount of child support the supporting parent must pay. However, life can take unexpected turns and sometimes it’s for the worst. There are supporting parents who have lost their job after their divorce. If you are one such individual, then keep reading to find out the best way you can tackle your situation.

Modification of child support

The best course of action in such situations is to talk to your ex about a modification in the child support payments. The modification can be temporary or permanent depending on your situation. You can request your ex to take some load of your shoulders till the time you become financially stable again. However, if your ex. is also someone who has a hard time managing his/her finances, then some other alternative must be thought of.

Temporary arrangements for the child

If both you and your ex are tight on finances, then an arrangement can be made to have your children taken care by someone else like your grandparents. Such arrangements can be made only on a temporary basis and must be approved from the court.

Pool in from other sources

If you’ve lost your job but are financially secure, then pool in some money from other sources. You may have other assets like stocks, bonds and even property which you can sell for a certain amount of money. Use that money to pay for child support until you get a new job.

Conclusion

Getting a divorce where children are involved is a complicated issue and depends on many factors. After custody gets established, child support must be determined for each parent. However, it becomes a serious issue when the supporting parent loses his/her job. Luckily, there are ways to keep the cash flowing for child support. Out of all the options available, modifying the child support plan works best.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

The Concept of ‘Jackson Credit’ for Child Support in California

Posted by: Gerald A. Maggio, Esq.

Top Orange County divorce attorneys; The Maggio Law FirmThere have been instances in California divorces where one parent has ended up giving 100% of his/her time for child support despite being granted equal child support in the court. Usually, the parent who takes care of the child for the majority of time should pay less but in some cases, the reverse has taken place.  The ‘Jackson credit’ became applicable after the famous Jackson vs. Jackson case.

The Jackson vs. Jackson case

In the Jackson vs. Jackson case, the mother charged the father with child support defaults while the child has been living with the father for 100% of the time. Initially, the trial court supported the mother saying the father attempted to change court orders for child care support. However, when the father appealed, the court said that even though the law does not allow an individual parent to make changes in child care support rules, the father fulfilled his obligations for child support.

What is a Jackson Credit?

A Jackson Credit is granted to noncustodial parents who prove that during custodial support, they paid their share of the custodial support. Courts allow child care support credits to parents who take care of the child and provide child care support as well. It saves one parent from substantial financial damage that can be incurred during child care support.

When can a Jackson Credit be claimed?

During arrears calculation, a non-custodial parent can claim a Jackson Credit for the time he/she spent with the child when he/she was not supposed to. Parents who can provide evidence that the child was under his/her care 100% of the time are eligible for Jackson Credits. In many cases, parents who have failed to show proper evidence have been barred from receiving a Jackson credit. Knowing how the credit system works can help save unnecessary financial loss. It is, therefore, important to talk to an attorney first before proceeding with the Jackson Credit.

The Jackson credit is applicable for parents who have paid for child care despite giving 100% of their time for child care. The credit system has been established to help parents save themselves from financial losses. The Jackson credit was created after a famous case that involved a mother demanding child care support from a father even when the father has been taking care of the child the entire time. If you are faced with a similar situation, it is vital that you speak to an experienced lawyer.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

What Role Does Parent’s Income Play In Child Support?

Posted by: Gerald A. Maggio, Esq.

Top Orange County divorce attorneys; The Maggio Law FirmDuring a divorce that involves children, one of the parent ends up having custody over the children while the other parent pays a certain amount as child support.  It is very important that parents calculate the amount of child support they need to pay. Parents should first work out where and with whom the children will live. Once that is sorted out, both parents should decide on a certain amount that must be paid for child support. The parent who loses custody battle usually become the primary child support payer. It is usually the parent with the higher income.

To calculate the gross annual income, parents need to look at their income tax return and the amount that is stated. From that amount they must minus union dues if present. It will give a fair idea of what each parent earns in a month. Additionally, they can contact a Child Support Services officer to help them chalk out the best plan for child support.

A split parenting can occur when there are more than two children involved and when each parent becomes the primary caretaker of each child. In such cases, it becomes the duty to each parent to contribute equally for child support. But that again it depends on the annual income of each parent.

There are many child support calculators available online. Such online calculator which has been created by the state gives an relatively accurate idea about the amount each parent need to spend each year for child support.

Conclusion

Parental income is very important for child support decisions because it determines how much each parent should pay for supporting their child. A child support calculator considers important factors like annual salary and expenses and determines a guideline amount to be paid.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.

 
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