Discussion Board

M em o to file

T o : File

F ro m : Paul P a n th e r

C lie n t: Ben

S u b je c t: D iv o rc e d e c r e e

Facts

"Ben and Jennifer were divorced tw o years ago and the decree stated th a t Ben was to make

m onthly payments to Jen. The court designated $500 a m onth as alim ony and $600 per month

as child support. Ben was unemployed fo r a q u a rte r o f the year and paid Jen $ 9,900 during the

tim e he was employed. He said $5,400 was fo r child support and $4,500 was alimony. In

addition, Ben transferred home theatre equipm ent to Jen w ith a FMW o f $ 3,300 and a basis o f

$6,000 in exchange fo r her promise not to pursue any claim against him fo r unpaid child

support and alimony. During his three months o f unem ploym ent Ben collected $3,000 o f

unem ploym ent benefits. He earned $72,000 in salary fo r the nine-m onth period o f

em ploym ent."

Issue and Conclusion

Can Jennifer accept the home theatre equipm ent as paym ent fo r the unpaid child support and

alimony?

Yes, if she agrees w ith the m ethod o f paym ent then it is possible.

Analysis of conclusion

A fo rm e r spouse can agree to receive prope rty as a fo rm o f alim ony paym ent over a w ritte n

agreement o f promise. If Jennifer is com fortable w ith the o ffe r and does not plan to pursue any

claim, she can use the w ritte n agreement as p ro o f to the IRS the m ethod o f payment.

Issue and conclusion

W hat if Jennifer were to disagree w ith th a t o ffe r and decided th a t Ben made more than enough

money over the year to give her the remaining unpaid child support and alimony. W ould it be

possible to pursue any claim against him?

Yes, because his income is above the threshold and being unemployed fo r 3 months does not

give him the right to not pay.

Analysis of conclusion

Alim ony is calculated based on the spouse a b ility to pay and the need o f the depending spouse.

Since Ben made $72,000 in salary fo r th a t year, he therefo re qualify to pay the unpaid am ount.

Issue and conclusion

Can Ben decided w hat portion o f the money is child support and w hat is alimony?

No

Analysis of conclusion

If paym ent are required fo r both alim ony and child support by the court decree, then payments

are firs t applied to child support and the remaining is alimony. The law says th a t when a m inor

child is involve in a divorce, the need o f the child come firs t over all else. Therefore Ben did not

have the a u th o rity to decide w hat portion o f the money goes to what.