Whenever there is a change income, whether it is the party receiving child support or the party paying child support, it is that person’s responsibility to file to modify the support order. When someone is suddenly let go from work, even if they qualify for unemployment income, it is often necessary to file to modify support. Even though the wages are attached and the court receives their funds from unemployment, this still does not mean the court is put on notice. You must take initiative and file to modify the order. Even if it is temporary, you should do this in case you are out of work longer than you anticipate. Having to pay a support order based on income you no longer have can be disastrous. In addition, if you have lost health coverage, it is important that you notify the other party as soon as possible. If you are receiving support, likewise, you should file to modify your support order. Support orders are modifiable if either party experiences a change.
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If you have a charging support order in PA for either child or spousal support, you likely have to pay the first $ 250 in out of pocket medical expenses each year per person before the remainder are allocated based on a percentage. You need to keep good records in order to receive your remainder share. You should create a list per person of all medical bills per person that are received each month and keep a copy of the bill. You will also need to keep a copy of the check or credit card receipt showing that you paid the copay or bill. Once you have reached $ 250 for the year, you should provide the documentation showing that you reached this limit and then start keeping track of all bills that come in for the rest of the year and request the percentage the other side is responsible to pay. You will likely have to front the money and seek reimbursement. In all cases, if payment is not made by March of the following year, you will need to file contempt with the court in your Domestic Relations office and again provide proof of notice and payment. It pays to be organized and you should make this something you do in January of each year.
Normally a support order is retroactive to the date of filing. If, however, there was a reason someone was precluded from filing for support, say for a physical or mental disability, the support order could be retroactive to the date they could have filed if they had been able. If a party conceals their income, the court could find that they are in contempt of an order that requires material changes to be reported in seven days and the court could retroactively modify the support to the date that they concealed their income. This also requires that the other party timely file once they learn of the misrepresentation. In these cases, a Court can retroactively adjust the amount of arrears on a support order. If there is a change income after a support order is entered that would materially affect the amount of support, it must be disclosed to the other side.
When the parties are married, usually, one of the parties carries the health insurance for the parties and any minor children. The Court keeps the status quo as much as possible while the divorce is pending. If you are carrying insurance for your spouse, you cannot drop them until the divorce is final. Health Insurance is an issue that arises in support court through Domestic Relations. As long as health insurance is available at a reasonable cost through work, that parent will be required to provide health insurance for the children.
If both parents are working and both parents have health insurance available for the children through work, then the Court will look at the cost of the plans and the benefits provided to determine which makes more economic sense. If there is a plan that is relatively cheap but provides for a high deductible, this may not be the best plan if the children have routine issues. It is important to not only look at monthly premium, but the deductibles, the special medical needs of the children, the cost of the copays for a doctor visit, specialist visit, etc. in order to determine which plan is better.
Whichever plan is chosen is paid by the parent through their employment and a portion of the cost for the children is reimbursed through the child support order. If you are the parent who provides health insurance and are receiving child support, you will get this portion included in addition to your basic support amount. If you are the parent who provides health insurance and are paying child support, then it will appear as a credit off of the basic child support that you pay.
The party who receives child support will be required to pay the first $ 250 per year per child of unreimbursed, out of pocket medical expenses. Once the $ 250 dollar point is reached, the order will allocate any remaining bills to be shared in proportion to income. It is the responsibility of the parent receiving support to document and provide proof of expenses to the other parent. Failure to pay these expenses can result in a contempt order. If there are significant, routine medical expenses, you can request that they be factored into the basic support.
If you are getting a divorce and there are child or spousal support issues involved in your case, the Court can hold you to an earning capacity if you are not working or you are not fully employed. What this means is that Court can assess you with a potential income based on your work history, education, skills, or even possible earnings. For example, if you work 15 hours a week and earn $ 20 an hour, there is a good chance the Court can impute earnings of 40 hours a week at $ 20 and hour on you when they determine support. This does not mean you have to work 40 hours but it means that income will be used to determine how much support you will receive from the father of your spouse.
Sometimes a vocational expert may be hired to assess your abilities to earn a living and this person will testify and write a report on what they think is a reasonable earning capacity. This is not always employed due to the cost of hiring a vocational expert and bringing them to Court but may be useful when an employee has significant education or skills that should generate a higher income.
If you are self-employed, the Court may also impute an income to you that differs from what you report on your tax return. The Court will scrutinize you more closely when you are self-employed, reviewing tax returns, personal expenses paid by the business, your income and expenses form. If you attempt to testify that your income is less than what your expenses clearly seem to generate, the Court may decide your income is based on the expenses you pay out.
If you are disabled or you are receiving unemployment, the Court will use the disability or unemployment income as your income rather than assess you will a full time earning capacity. In some instances, a court may attempt to hold you to the minimal income you can earn while still collecting benefits, but you should never agree to this. If you are disabled and have children, you may want to also be sure you have applied for the benefit for the child. If you are disabled but you have not yet gotten approved for Social Security, the Court may hold you to an earning capacity. In those cases, you want to get a disability note and records certified from your doctor.
For additional information, see:com/Family-Law-Divorce/Divorce-Involving-Business-Owners-the-Self-Employed/
It is important to take a very close look at the finances of a self-employed party in a support case. Generally, actual earnings will be utilized to accurately measure the income available for support and ability to pay. However, in a few circumstances, including at times the case of a self-employed party, earning capacity may be used instead to effectuate economic justice. For example, a self-employed party may reduce the salary they pay themselves in order to try to reduce the support obligation. Additionally, many self-employed parties claim a lot of deductions on their tax returns before reporting their net income. A portion of these deductions may be added back when the court is trying to determine a more accurate figure for income.
Specifically, the courts may consider all the personal perks provided at the expense of the company such as cell phone, car payments, entertainment, meal, or travel expenses, country club dues, and other comparable expenses that primarily benefit the individual. These expenses may be still be permissible deductions for tax purposes but the court should consider the amount and nature of these expenses in a support case. In Commonwealth v. Gutzeit, the Defendant owned his own business and claimed entertaining, maintenance and repairs of automobiles, life insurance for himself, and even gas for his Wife’s car as business expenses (180 A.2d 324 at 327). The court acknowledged that while the total sum of these deductions should not necessarily be added back in at least a part of them should be as determined from all the circumstances of the specific case to arrive at a reasonable earning capacity.
One asset in equitable distribution or support that parties should consider when getting divorced is worker’s compensation awards. Depending on what state the worker lives, there may be a component not only for lost wages but also an award comparable to a personal injury award. In these instances, the lost wages should be calculated into any support award and the again, you will need to decide whether you want to lump sum the award portion as either income for purposes of support or as an asset for purposes of equitable distribution. In the event that it is considered as income, you cannot double dip and claim it as an asset. If, however, the award is for an injury that occurred outside of the marital period, either before or after separation, you will need to include it as income as you cannot include it as an asset. Your support order should be very detailed and specific and identify exactly what portion of any worker’s compensation is included in the calculation of the income. Whether to have the worker’s comp treated as an asset or income really depends on how the court will treat the asset. In some instances, the court may award the majority of that asset to the injured party and it may be better to then include it income if you are also eligible to receive support. Speaking with your attorney about the expected amounts would be wise to do before you make that decision so that you can decide whether it is better as support or as an asset.
For more information see:/Family-Law-Divorce/Division-of-Marital-Property/
Oftentimes when getting divorced, an asset the generates income can either be considered in equitable distribution or in support. For example, if you receive stock options as part of your employment, they are considered an asset for purposes of divorce. If you cash them in during the divorce, it will either be considered an asset for income, but not both. If you have a pension that accumulated during the marriage and it goes into pay status during the divorce, or if it is already in pay status at the time of the divorce, it may be considered an asset or income but not both. You need to be careful that if you have a support order that the income from that pension or the stock option is not considered into the incomes if you want to have that asset considered an asset for equitable distribution. You need to be very careful that any support order entered specifically states whether any of the income was included, and if so, how much.
Sometimes, an asset may be a hybrid of a marital asset and non-marital asset. For example, a pension may include a portion of non-marital years and a portion that is marital. In that instance, you need to weigh whether it is better to include the entire pension income, or whether you want to include the non-marital portion income and include the marital portion as an asset for equitable distribution. Since you often receive more in equitable distribution than you do in support, oftentimes, the person who is entitled to a share of the pension or a share of the stock option will want to consider it in equitable distribution instead of support. Either way, be very clear in any agreements or order, which is so that there is no double dip if you are paying and that there is no argument it was already included if it was not considered.
Child support is a remedy afforded to the parent who has the majority of time with the children or who has equal time but makes less money. Child support may be filed either in the county where the child lives, the defendant lives or the defendant works. In Pennsylvania, child support is based on guidelines so no matter what county in Pennsylvania you choose to file, the amount should be the same and the money is all funneled through the PACSES which is located in Harrisburg. The difference may be procedure, time and how many steps it takes you to see the Judge. For example, in Bucks County, PA, you will attend a lower level conference and if not resolved it will be scheduled for a Judge within a few weeks. In Philadelphia and Montgomery Counties, however, you will first go to a conference, then to a Master’s Hearing and then to a Judge.
You should file for support as soon as you know that you will not be living with the other parent and about six weeks prior to the date you will separate. There are no filing fees for support in any of the counties and it is one of the few times you will not have to pay a filing fee. Most counties have pre-printed forms that you can fill out to file on your own or you can hire an attorney to file it for you. Domestic Relations is the office that handles support matters and you will want to contact that office to find out the hours and location to file in your county.
The putative spouse doctrine provides an equitable remedy where one or both spouses believed in good faith they were married and subsequently discovered the marriage wasn’t valid. The spouse that is unaware of any impediment to the marriage is the putative spouse. The equitable remedy provided more or less mirrors the relief that would be available if the parties were divorcing from a valid marriage. The purpose of the doctrine is to protect those who have an honest belief that they are married from being denied the economic and/or status related benefits of marriage including potential property division and support.
The doctrine is recognized in many states across the country as long as the key elements are met. First, there must be a proper marriage ceremony. Second, one or both parties must have a good faith belief the marriage is valid. Good faith is defined as an honest and reasonable belief. If either spouse receives information concerning the validity of the marriage, they have a duty to investigate further.
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