Aside from the emotional impact of a failed marriage, finances usually top the list of concerns when you’re getting a divorce.
There’s much more to consider than how you’ll divide your debts and assets. There’s also the question of alimony and, if you have children, paying child support.
What’s the difference between child support and alimony? Are they interchangeable, or do they mean two different things? We’ll answer these important questions below, so keep reading!
What Is Alimony?
To help clarify alimony, here’s another term for it: spousal support. It’s a court-appointed payment amount that one spouse pays to the other following a divorce.
The general intent behind alimony is to help the spouse maintain a similar lifestyle that they were accustomed to during the marriage. Alimony is never granted automatically — the spouse has to ask for it during the divorce proceedings.
The judge will look at a number of things to determine alimony payments, including:
- The employment situation and income of each spouse
- The length of the marriage
- The age of each spouse
- Each party’s individual living expenses
- The division of assets during the divorce
It’s good to know that alimony can be altered after the divorce is finalized. For example, if one spouse loses their job or the other spouse’s cost of living increases, they can petition the court to adjust the payments.
Alimony may qualify for a tax deduction (if you’re the one paying it) or taxable income (if you’re the one receiving it). You’ll want o talk with your attorney or an accountant to ensure you understand the tax laws that apply to your situation.
What Is Child Support?
While alimony is paid to help support the spouse, child support is paid for the benefit of the children. The payments should help to cover necessary living expenses including housing, food, clothing, and medical care.
How can you estimate what your child support payments might look like? You can use a child support calculator to get an idea of what you should expect to receive or pay after the divorce is final.
It’s also important to know that every state has different laws regarding child support. If both parents earn similar incomes and share equal custody, the judge may not order child support payments. Otherwise, the state will award payments based on the number of children and the non-custodial parent’s income.
Child support laws also differ when it comes to duration. Some courts may order payment to continue until the child turns 18. Others mandate that the paying parent continues to contribute towards their child’s college tuition.
A major difference between child support and alimony is that child support payments are not considered tax-deductible or taxable income. There are no reporting requirements for either parent, although it’s still best to clarify with an attorney or accountant about claiming your children as dependents.
Understanding the Difference Between Child Support and Alimony
The two terms get thrown around a lot, but most people don’t understand the difference between child support and alimony. If you’re at the beginning of a divorce, we hope this article has shed light on this very important topic!
Child support vs alimony isn’t the only topic we’re discussing today. Keep browsing our site for more informative articles like this one.