The best method for wading through support obligations is with the assistance of a professional divorce mediator. Although they cannot give you individual legal or financial planning advice, they can assist you both in become familiar with the ins and outs of child support, spousal support and other debts payment obligations that may be an issue in your marriage.
In the case of spousal support (previously called alimony), it is important to understand why and when such payments can be necessary and how they work in practice. Colorado has a new law effective January 1, 2014 that may affect your case. Your divorce settlement will detail the structure of monthly contributions to spousal support, child support and debt payments. These payments can be essential in allowing spouses to maintain a standard of living that is possible given the finances available to the parties.
When exploring the option of spousal support, it is important to consult the provisions and laws as well as understanding the tax impacts of spousal support. The knowledge you gain from taking the time to read the law and evaluate your financial situation will help you determine your financial needs, your eligibility and your spouse’s ability to make payments. It might also be helpful to get in touch with a tax professional who can help you familiarize yourself with the tax ramifications and the impact on your particular situation.
When divorces involve children, complexities arise that require careful thought and attention to laws regarding child support. What is most important to consider though, is the preservation of a healthy family life and financial future for you children. Child support is generally determined by a formula and is an “enforced legal obligation.” Thus, it is important to be diligent in recording payments.
A professional divorce financial mediator can help you evaluate the impact of all of these issues on your individual situation.