Alimony, child support, and taxes

Been a busy day, so I only have time to write a quick note.

Don't forget that, when drafting your marital settlement agreements or when in mediation, alimony is considered income and is taxable. Child support, on the other hand, is not considered income. So, if given the choice of whether you want a lot of child support or a lot of alimony, and all else being equal, go for the child support. You won't have tp pay taxes on it.

Of course, all else is never equal. Alimony may end when you re-marry, and you might be planning to re-marry soon. (About 75% of men and almost as many women re-marry within a year after divorce.) Child support may end when the kids graduate high school, for example. Bear these kinds of things in mind when deciding how to structure a settlement.

But definitely don't forget the tax man, either.