Family Law Economics, Child Support, and Alimony: Ruminations on Income. Part Two.
Florida Bar journal, Vol. 78, No. 6, p. 34, 2004
6 Pages Posted: 11 Jul 2010
Date Written: June 10, 2004
Family Law economic issues involve complicated matters of accounting, finance, and tax law. This article - the second in a two-part series - focuses on Florida issues involves alimony and child support.
Readers may want to think of Family Law from the perspective of a Tax Lawyer. In tax law, practitioners plan transactions to save approximately 35 cents on the dollar. The same kinds of planning techniques - from income deferral to expense acceleration - apply to family law matters; however, the consequences are much greater. If a person reduces his or her income by a dollar in a base period, he may save up to ten cents of child support - for many years. The present value could easily be more than one dollar. The same is true of alimony. Hence, while tax planning saves 35%, divorce planning may save 200% or more - just considering the alimony and child support issues.
A later article will focus on similar issues involving property distribution.
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