Why You Need to Understand the Difference Between Child Support and Alimony
It is a dream of every individual to have a successful marriage on earth, however that might not be possible under some circumstances. However, before things get worse while married, make sure you know your rights. Since more problems have been reported with legal issues, read more now. Be aware of the resulting issues, before separation as a couple. This website explains more some of the problems that might accompany you. Indeed a lot of the problems will be concern with financial dealings. To be on the right consider this article as it explains everything that you need to understand between child support and alimony payment.
The purpose of payment is the first thing you need to understand. There is a profound difference between alimony and child support and you need to understand them. Child support is a payment done to support a child after divorce and not for any other support purpose. Child support intends to provide food, housing, medical care, and any other basic needs, discover more here. How the money is spending should be within the budget. The report is made to secure the money from unintended purposes. 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. As discussed on this page, no penalties on how the money will be used by the receiving party.
Tax policy. It is key since each citizen has to pay tax, however the amount to be taxed is key. Since the money is intended to support the child, no taxation should be done. The income received by the second party is subjected to taxation because the money is treated as a regular salary.
Legal terms of payment. Through this website you will understand the terms of payment between the two parties. 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 Termination can only be done when the child is independent and not in college. Concerning the alimony payment, termination can be done any time anywhere. Both parties are allowed to agree when how the termination should be done. The law court can end such terms, if each partner is having the same income or if the paying party losses a job.