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Do I have to pay child support out of a cash for keys settlement?
11-09-2012, 06:11 PM
Post: #1
Do I have to pay child support out of a cash for keys settlement?
I am receiving a cash for keys settlement to move out of my marital home. It has been court ordered to pay all 32% of all income to my ex wife. I understand this will be taxed under "other income". With that being said do I have to pay her child support out of this since I will have to pay taxes and include it as income next year?

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11-09-2012, 06:19 PM
Post: #2
 
Income is income, regardless of where it comes from. You have been court ordered to pay child support to the tune of 32% of ALL INCOME. It doesn't matter that it's a cash settlement. You have to pay 32% of it to your ex-wife. If you don't pay, and she finds out about it, she can sue you, and then you'll be out 32% plus lawyer/court fees, and whatever additional amount she decides to sue you for.

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11-09-2012, 06:19 PM
Post: #3
 
It has been court ordered to pay all 32% of all income to my ex wife. I understand this will be taxed under "other income"
Sounds like you might have it CORRECT since the order does not mention any amounts that you could exclude from INCOME for this purpose.
Hope that you find the above enclosed information useful. 06/21/2012
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11-09-2012, 06:19 PM
Post: #4
 
What is it about "32% of *all* income," that you fail to grasp? You pay taxes on ALL of your income unless certain income is exempt from taxation. That's really irrelevant to the matter of the support since ALL income means ALL income.
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11-09-2012, 06:19 PM
Post: #5
 
child support is not deductible by you nor taxable to the parent(the child support is for the support of the child)
if your payments to the ex are labeled Alimony they are deductible by you and are income to the ex
you can use the money any way you like
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11-09-2012, 06:19 PM
Post: #6
 
Sorry you don't want to support your former family, but your child deserves to benefit in any way he or she would if you were still with the mother.

You said this is income. You said 32% of all income. Where's the confusion?
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11-09-2012, 06:19 PM
Post: #7
 
http://ChildSupportRights.org/WhatPayersNeed2Know
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Federal Child Support Enforcement Handbook for Non-Custodial Parents
http://childsupportrights.org/
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For 22 years, I have volunteered my time working with divorced/single fathers dealing in family law issues, such as child support, teaching them about what the states are not telling support obligors.
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