Family support and unallocated alimony are support or alimony payments, usually made at regular intervals by a spouse or former spouse to another during and/or after divorce, dissolution or legal separation. Family support and unallocated alimony are payments that are intended to aid both parent and child. Unlike spousal support and child support payments family support and unallocated alimony do not specifically label all or part of the payment as “child support”.
Sample Family Support or Unallocated Alimony Orders:
- Husband shall pay $2,500 monthly “for and toward the support of wife and two children”
- Wife shall pay Husband $2,500 monthly family support
- Husband shall pay Wife $3,000 monthly unallocated alimony
Like traditional alimony, spousal support and maintenance, family support is not gender based and may be awarded to men or women. A man or woman’s right to receive family support or unallocated alimony also is not guaranteed and is awarded on a case-by-case basis. Judges, attorneys and divorcing couples generally consider a number of subjective factors before establishing family support including, but not limited to:
- Age
- Health
- Education
- Income
- Skills and employability
- Assets or property received or owned
- Alternative sources of income
- Contributions and sacrifices made during marriage
- Children’s ages and special needs
- Length of the marriage
- Reasons for the dissolution of marriage or legal separation (in fault states)
- Marital standard of living or lifestyle
- Cohabitation
A couple’s marital standard of living or lifestyle can have a significant impact on the amount of support awarded in a case. For example, if a married couple lived lavishly with expensive houses, cars and boats, and the husband was the higher earning spouse, he may be ordered to pay his wife family support or unallocated alimony payments in a sum sufficient to maintain the same standard of living for wife and child during and after the divorce, dissolution or legal separation. Establishing or proving that a lavish lifestyle existed and should be maintained during and after divorce, requires a detailed financial analysis of the couple’s finances, which is usually prepared by a forensic accountant or financial analyst. The cost and time required to prepare a marital standard of living analysis can be great and therefore, may not be worthwhile if the costs outweigh the potential benefits.
Family support may be awarded or accepted in a divorce, dissolution or legal separation in lieu of child and spousal support payments, however it may not be used to avoid payment of adequate child support. Unlike child support, family support is tax deductible and, depending upon the spouse’s individual tax brackets, may be an attractive alternative that could result in significant savings. For example, if you are the payor and fall within the 34% tax bracket, every $100 you pay in family support costs $66 because of applicable tax deductions or tax savings. If your ex-husband is the recipient and falls into the15% tax bracket, which means he receives $85 after-tax dollars for every $100 of family support paid, you save $19 for every $100 paid. Alternatively however, if you are the recipient of family support instead of nontaxable child support, and you fall within the 15% tax bracket you will only receive $85 monthly and lose $15 for every $100 paid. Therefore, if you and your husband are negotiating a marital settlement agreement, it is very important that you clearly understand the tax consequences associated with alimony, spousal support, maintenance, child support, family support or unallocated alimony payments and plan accordingly. Speak with an accountant or tax lawyer to determine which type of support that is best suited to your case and life circumstances.
This article is not legal or financial advice. You should contact a lawyer, accountant and/or financial professional in your state to discuss the specifics or your case and applicable laws.
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