Why You Need to Understand the Difference Between Child Support and Alimony
Every person has an intention of having the best marriage in life, but such thoughts might not be achieved due to some reasons. On account of marriage, anything can happen, therefore ensure you know your rights. It is important since many legal matters have caused more harm to people, click here for more. Always be informed of the outcomes; before making a divorce. The issues that can affect you more are of great significance and you need to be careful about them. Indeed a lot of the problems will be concern with financial dealings. It is, therefore, very important to know the difference between, child support and spousal payment as discussed below.
Why you are making the payment should be understood. Alimony and child support has significant differences and knowing them is pivotal. After spousal separation child support is made to assist the child and not any other purpose. Any essential support such as housing, health care, and food should be provided to a child. The paying party should therefore get all the expenditure details, as stipulated in the budget. This will make sure the money given out is not going for any other activities apart from the ones highlighted in the budget. On the other hand, alimony is payment made to one party after separation and the main reason is to maintain the standards of living amongst the partners. There is no restriction on how the money will be spent by the receiver.
Tax policy. The amount of tax should be considered when paying taxes, even though it is compulsory for each member. Since the money is intended to support the child, no taxation should be done. In spousal payment, one can claim for some relieves, but the receiving party will pay the usual tax since the money is treated as general income.
The rule governing the payment should be well understood. It is very critical when it comes to legal matters, hence read more here. You can get sued in case you fail to provide money for child support as a paying party. In most cases child support should go beyond 18 years amongst the children; however it cannot end if the child is needy For instance, if the child is joining college or university the payment can be extended until when the child is independent. No specific date for termination in case of spousal payment. You can just agree among yourselves if it is good to end such terms. Such termination can also be done by a court when each party stable or the paying party loss his or her job.
Citation: wikipedia reference