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. On account of marriage, anything can happen, therefore ensure you know your rights. Since more problems have been reported with legal issues, read more now. 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. 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 party receiving the money should have a budget and report on how the money was spent. This will make sure the money given out is not going for any other activities apart from the ones highlighted in the budget. Spousal payment is mead if the living standard of one individual is compromised, view here. 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. All citizens of a particular state must pay tax to the government, however the mode of payment matters a lot since tax relief is important. The money allocated to support the child is not subjected to taxation. The income received by the second party is subjected to taxation because the money is treated as a regular salary.
Legal terms of payment. It is very critical when it comes to legal matters, hence read more here. One party can take legal measures in case another party fails to make the payment. If a child is 18 years, the support can be terminated but it can be extended under some situations. For instance, if the child is joining college or university the payment can be extended until when the child is independent. Spousal payment can be ended any time, check it out! You can just agree among yourselves if it is good to end such terms. In case the paying party loses a job or if each individual is stable, the termination can be done by a court.