Income at time of Divorce

Asked almost 2 years ago - Mountainside, NJ

Is it important to mention annual income in a Settlement Agreement for divorce when alimony is awarded? Do you mention just one year of income or more? Why is annual income included in a settlement agreement? How important is it when one pays child support?

Attorney answers (5)

  1. Howard M Lewis

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    Contributor Level 20

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    Answered . Yes, it is very important and it is the benchmark by what you will follow now and in the future should things change. Take care.

    Legal disclaimer: The response given is not intended to create, nor does it create an ongoing duty to respond to... more
  2. Kenneth A White

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    Contributor Level 20

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    Answered . The primary reason the income may be stated is so that everyone understands what the "status quo" was at the time the terms of the Agreement were confirmed. Ultimately, one may refer back to this information if a party in the future makes an application to modify support (alimony or child support), indicating that the income was $x in 2012 and now it is $y in 201?, accordingly there has been a "change of circumstances."

    The Answer provided was based on the limited information provided, and represents information based on the law in... more
  3. Thomas S. Durst

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    Contributor Level 14

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    Answered . Stating each parties income is critical for a number of reasons, all of which require more information and more discussion than this forum allows. You should consult with an attorney to decide to how best present this information and protect yourself in the PSA.

    This post is not legal advice and does not create a confidential attorney-client relationship. It is being... more
  4. Carrie Susan Schultz

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    Contributor Level 4

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    Answered . Yes. Depending in the circumstances, you can mention one year of income, more than one, the average over several years, etc. Mentioning income is important to know how the parties arrived at the figure initially and if the agreement calls for potential modification in the future of alimony (and especially child support that is always modifiable based upon a sign change) those figures will become critical in that analysis.

  5. Geraldene Sherr Duswalt

    Pro

    Contributor Level 8

    Answered . Income of each party should always be included in any settlement agreement even if the agreement provides that no support is being paid and absolutly when there is support, either child support or alimony. Both child support and alimony are determined by the parties income although alimony may be determined by income earned in prior years and child support is generally based upon current income. It is important to be clear as to the numbers that were used to make the determinations for a number of reasons, but the most important being any attempts by either party to alter the terms of support. These concepts get complicated and it is often better to have an attorney draft the settlement agreement and work out the child support numbers.

    Disclaimer: The information you obtain at this answer is not, nor is it intended to be, legal advice. You should... more

Related Topics

Divorce

Divorce is the process of formally ending a marriage. Divorces may be jointly agreed upon, resolved by negotiation, or decided in court.

Alimony

Alimony is the regular monetary allowance one ex-spouse may be required to pay the other after a divorce.

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