Virginia Support Calculations – Comparing Child and Spousal Support

April 23, 2012

Divorce is extremely expensive. For most people in Virginia, raising a family in two separate homes (as many divorced people do these days) will cost one or both of you and your children plenty in terms of ability to maintain lifestyle and, even, to simply pay the bills. One of the primary ways that Virginia families make this all work is by the payment and receipt of support: Child Support and Spousal Support (Alimony).

Below is an outline to help you understand how these two methods of support work in Virginia.

(1) Child Support Calculations represent barebones, bottom line child support based on gross incomes, number or children, cost for health insurance and cost for work-related childcare.

- Parents can always choose to have child support be more than the calculations, and often do.

- Many parents, too, leave the basic child support calculation as is and share the cost at an agreed upon ratio (or have the wage earner pay) for particular items necessary for the children, e.g., expensive out of pocket medical care/therapy costs, extracurricular activities, camps, back to school wardrobes, Christmas Gifts, etc.

- Many parents also choose to have child support based on the guidelines and any additional support necessary for the family to be in the form of spousal support (tax deductible to the payer – more on this later)

(2) Spousal Support Calculations (pendent lite) are designed to be temporary amounts of spousal support to help get the non/lower earning spouse through that time period between separation and the actual divorce. (Courts do not want to have a full evidentiary hearing two times – once before trial and one at trial). However, many people chose to use these calculations as their spousal support amounts, particularly since they are calibrated for Fairfax County proper (unlike child support, which is state wide).

(3) Spousal Support is considered income to the receiver. It is taxable. It is deductible for the payer. It is important to understand that, when a parent receives spousal support, that amount is considered as her/his income for purposes of calculating child support; and, the payer of spousal support’s income is reduced by the spousal support amount. Thus, when there is an award of spousal support, the child support number changes (goes down).

(4) Child Support is always reviewable by the courts based on a “change in circumstances”, e.g. incomes go up, incomes go down, children’s needs change. (“The courthouse doors are always open for matters concerning children.”), whereas . . . )

(5) Spousal Support/Alimony may be reviewable depending on how the Settlement Agreement is written. Spousal Support is usually awarded for a specified period of time.

(6) Children receive child support for the duration of their minority (until they turn 18 years old, unless still in high school at 18. (In that situation, children continue to receive child support until they graduate, but not beyond their 19th birthday unless they have particular special circumstances. Adult children who are not able to live independent lives, too, may receive child support well beyond their 18th minority.), whereas . . .

(7) There is no set time for duration of a Spousal Support award. The “Rule of Thumb”, however, in cases where circumstances are such that spousal support is appropriate, is that it is awarded for 50% the length of the marriage (but that is not the law)

This blog and its materials have been prepared by Graine Mediation for informational purposes only and are not intended to be, are not, and should not be regarded as, legal advice.  This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship.  Internet subscribers and online readers should not act upon this information without seeking professional counsel.

3 Golden Rules of Visitation

April 23, 2012

Check out The 3 Golden Rules of Visitation Vlog and learn what’s most important when spending time with your children.


What Factors Influence an Individual’s Willingness to Cheat?

January 26, 2012

There are four factors that seem to have the greatest influence over whether a spouse will cheat or not. These factors are pretty basic and probably won’t surprise many people. They are the same factors that probably influence caveman and women, too. Human nature just doesn’t seem to change!

Good Looks, Charisma & Wealth – Just like the peacock, men with beautiful plumes often get their choice of pea hen.  For women, those described as “sex-pots” and “hottie’s” are often sought after by men – ring or no ring.   No new information here. That’s why people tell you that, if your middle-aged hubbie is suddenly sporting a new look, you might want to start asking some questions; and same guess for a middle-aged women. Better to marry dowdy and shrek-like than dapper and gorgeous, charming, and rich no explaination needed here.

Opportunity and Free Time – Couples that lead fairly separate lives – social lives, careers, travel – are more likely to cheat than couples that spend most of their time together.  Of course, couples that spend every minute together can get awful sick of one another and may never grow as people.  Somewhere in between suffocation and total freedom is probably best.

Risk Taking Personalities – People who like a thrill tend to get themselves involved in extramarital affairs more than homebodies and cautious people. If you’re married to one of those adventurous types, better look into couple’s sky diving or bungee jumping… or you might be in for a sad surprise.

High Sex Drive – Obviously, if you don’t like sex, you will be less likely to seek it out!  People who love sex, and those that have an “addiction” to the excitement, thrill and titilation of “the kill” are at great risk of cheating.  No matter how wonderful the sex life of a married couple, it can be hard to compete with the “new” (for some people!)

Feeling Neglected, Unappreciated – Of course, unless the cheater feels somehow entitled to a harem or stable of studs, most individuals engaged in extramarital sex are truly unhappy in their marriage.  They often feel neglected, both physically and emotionally.  They talk of being unappreciated, misunderstood and unloved. This is open door for extramarital affairs. Love the one you’re with!


Keys to Greatness

January 13, 2012

Many people choose, when they get divorced, to reassess their views on life, their personal priorities and their ways of relating to other people. There is no shortgage of self-help books to guide you in that undertaking.  But, I have often found  that the best way to learn new skills and habits is to first see how great people (e.g. leaders, thinkers, artists, writers, philosophers that you admire)  have lived their lives. 

Jacob Abbott, in his classic autobiography of Alexander the Great, made a wonderful list of Alexander’s personality traits that allowed such a young man (Alexander was only 20 when he assumed the throne of Macedononia and a mere 32 years old when he died after having conquered much of the known world at that time) to rise, so quickly, to greatness.

These Keys to Greatness — or personality traits, habits, mannerisms and relationship skills, are:

  • Being full of ardour (feelings of great warmth, intensity) and enthusiasm for all you do
  • Being calm, collected and considerate in emergencies requiring caution
  • Being thoughtful and farseeing regarding consequences of your actions
  • Being able to form strong personal attachments
  • Being finely formed in physical attributes
  • Being prepossessing (to make a positive impression on someone beforehand) in manners
  • Being athletic and active
  • Being grateful for all kindnesses shown you
  • Being considerate of other people’s feelings
  • Being faithful to friends
  • Being generous toward foes

I guess nice guys don’t always finish last. :-)


Why You Should Not Expect Your Bank to Voluntarily Rewrite Your Loan

January 4, 2012

Many divorce clients are looking for ways to restructure their finances so that they can move on with their lives with a clean financial slate.  In this economy, that is tough going.  From what I have seen, loan modification applications get “lost” more than is statistically appropriate and there is little chance of  being forgiven or renegotiating  just about anything when it comes to banks.  In other words, “Bank Wins” is the norm.  I could not have expressed what is going on in the world of bank loan remodifications better than the following article.  See the link below for a great article to read in case you are thinking about a divorce which is based, in part, on some type of refinance/loan modification on your upside-down residence:

http://www.bankruptcylawnetwork.com/why-you-should-not-expect-your-bank-to-voluntarily-rewrite-your-loan/ via


In a Bind? A Few Ways to Get Money from an IRA Penalty-Free

December 12, 2011

Lost your job?  Unexpected HIGH expense?  Unless you have a good nest egg put away for a rainy day, you might be scrambling for funds to cover unexpected expenses, and your IRA might be a place to look for that needed cash.

Are you aware that funds withdrawn from an IRA are taxable, and if you are under 59-1/2, you will pay a federal penalty of 10% and possibly a state penalty too?

Withdrawing funds early from your IRA will affect your standard of living when you retire.  We hope that you never have to do that, but if you do, here are a few ways to beat the early-withdrawal penalty.  (Of course, you still need to deal with the IRS and income taxes – no way to get around that)

·       Annuitize: Under IRC Sec. 72(t) you can avoid penalties by taking a series of substantially equal periodic payments until you are 59-1/2 (but not less than five years). To estimate how much you can withdraw each year, use the 72(t) calculator at Bankrate.com (See:: http://www.bankrate.com/calculators/retirement/72-t-distribution-calculator.aspx

·      Buy a Home:  If you have been renting, had alternative living arrangements, and have not owned a home for at least two years, you can withdraw up to $10,000 to buy a house in your name or in the name of a spouse, child or grandchild.

·      Pay for Education: You can go back to school, or withdraw funds for college tuition and related expenses (books, materials, fees) for your spouse, children or grandchildren.  Be aware that certain income limits apply.

·      Cover Medical Expenses: If your medical expenses (for you, your spouse or dependant) exceeds 75% of your income, you can withdraw from your IRA penalty-free.

·      Pay Medical Insurance Premiums: If you have been unemployed for at least twelve (12) weeks, and receive unemployment compensation, you are eligible to withdraw funds to pay for your medical insurance premiums.

·      Pay Back Taxes to the IRS:  If the IRS has placed a levy against your IRA, you can withdraw funds to pay the back taxes.

·      Disability: If you are “totally and permanently disabled” by IRS definition, you can take distributions from your IRA without penalty.

·      Death: Did you know that when you die, your beneficiaries must begin taking distributions from your IRA, and there will be no penalty to them.

This blog is written based on my observations and experience.  I am and not a CPA, tax planner or tax attorney.  I am a mediator and former family law attorney. All data and information provided on this site is for informational purposes only. wpthemesplugin.com makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.



GOOD NEWS – I am Divorced and Can Still Claim My Ex-Spouses Social Security

December 2, 2011

There can be good news a about divorce!  Did you know that if your marriage lasted at least ten years, you can claim social security benefits on the entire earnings history of your ex-spouse?

Here are a few important qualifiers you need know:

  • You must be unmarried. If you remarry, you cannot collect benefits on your former spouse’s record until your later marriage ends (whether by death, divorce or annulment).
  • You must be 62 years old or older.
  • Your ex-spouse must, him or herself, be entitled to Social Security retirement or disability benefits.
  • Your own personal social security benefit, based on your own work, must be less than the benefit you would receive based on your ex-spouse’s work.

It’s an either-or situation – you’ll get your own Social Security benefits, or one-half of your ex-spouses benefits (“derivative benefits”), whichever is greater.  Of course, the amount of benefits you get has no effect on the amount of benefits your ex-spouse or their current spouse may receive. (Their benefits are not reduced because you get ½ of your ex-spouse’s benefits!)

How you ask?  Below are a few answers to questions you may have:

1. How many ex-spouse’s can claim derivative benefits?
As many ex’s as there are, as long as each marriage lasted 10 years.  Mickey Rooney’s seven ex-wives got left out since none of the marriages lasted more than 10 years, but three of Johnny Carson’s marriages lasted over 10 years and all his ex’s were eligible for benefits.

2. If my ex-spouse dies, do my derivative benefits end?
This has good news and bad news. The bad news: If he/she dies, the derivative benefit ends. The good news is that now you can collect survivor benefits, which are 100% of his benefits, not just 50%.

3. Can I receive both public employee benefits and social security?
Under the Windfall Elimination Provision (WEP), benefits received from a non-Social Security covered job (teacher or other civil service job) may cause Social Security benefits to be reduced by several hundred dollars. The Government Pension Offset (GPO) applies to derivative benefits, which will be reduced by 2/3 of the pension benefits received by an employee from a job not covered by social security.  (This is where you really need to talk with a knowledgeable representative at the Social Security Administration.)

4. Can I receive benefits on my ex-spouse if he/she has not yet filed for benefits?

If your ex-spouse has not applied for retirement benefits, but can qualify for them, you can receive benefits on his or her record if you have been divorced for at least two years.

As in any case where government benefits are involved, these rules are subject to change. So, when you are ready to claim social security benefits, be sure to let the Social Security Administration know that you were married for more than ten years, and be prepared to furnish your ex-spouse’s full name and social security number.

The Social Security Administration will be able to calculate what benefits will give you the highest monthly payment, and will recalculate those benefits if your ex-spouse dies while you are collecting benefits.

For more information visit the page “If You Are Divorced at the Social Security Administration’s website.

All data and information provided on this site is for informational purposes only. Graine Mediation and its owner, Robin Graine, make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.

 


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