What Is 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. However, before things get worse while married, make sure you know your rights. It is important since many legal matters have caused more harm to people, click here for more. For instance, before you divorce your spouse make sure you are aware of the consequences. Some of the problems that can result are outlined on this homepage, hence be informed. Indeed a lot of the problems will be concern with financial dealings. Therefore, make sure you know the differences between child support and alimony as outlined in this article, hence keep reading.
Understand the reasons for paying. There is a profound difference between alimony and child support and you need to understand them. The money given to support a child is absolutely meant to support a child only. Child support intends to provide food, housing, medical care, and any other basic needs, discover more here. The paying party should therefore get all the expenditure details, as stipulated in 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. There is no restriction on how the money will be spent by the receiver.
How taxation is done pertaining to the two systems of payment must be clear. It is key since each citizen has to pay tax, however the amount to be taxed is key. The money allocated to support the child is not subjected to taxation. However, in alimony the paying party might claim some taxable benefits, and the receiving party will get the money as normal income hence, most of them will have to pay usual taxes like any other worker.
Legal terms of payment. Through this website you will understand the terms of payment between the two parties. Child support is mostly controlled by the state laws and failure to adhere to it; one can take legal actions. If a child is 18 years, the support can be terminated but it can be extended under some situations. Termination can only be done when the child is independent and not in college. No specific date for termination in case of spousal payment. As partners, both of you are allowed to terminate alimony after a common understanding. Such termination can also be done by a court when each party stable or the paying party loss his or her job.