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Category: Financial Support

Financial Support

Divorce Mediation for Division of a High Net Worth or Complex Financial Estate  

In Nebraska, pursuant to the Nebraska Parenting Act, parents are required to attempt mediation to agree to a Parenting Plan for their minor child(ren) in a divorce or custody action.    So, while many people are familiar with the mediation process as it relates to children, custody, and parenting schedules, people are less familiar with the idea of divorce mediation for financial issues.  One myth about divorce mediation is that you can’t use the mediation divorce process for large or complex financial estates.   This myth is not true.  You can mediate all of the terms of your divorce, including division of
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Advanced Child Tax Credit Monthly Payments: Important Information for Divorced Co-parents

On July 15th, the American Rescue Plan’s expanded child tax credit program will take effect. Under the expanded program, qualifying families will receive a monthly payment of up to $300 per month for each child under 6 and up to $250 per month for each child 6-17 years old. The expanded program also allows for half of the child tax credit for next year to be paid in advance to whomever claimed the dependent in 2020. For divorced parents, this expanded program raises many concerns, especially for those who alternate the tax years for which they claim their children as
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Private Education Expenses

We know there is stress and confusion regarding the start of school this year for families in Nebraska.  What may be adding stress to some divorced parents is the decision to send their children to public school or whether to enroll them in private school depending upon each schools’ coronavirus precaution and procedures. The Nebraska Supreme Court Child Support Guidelines have no specific provisions regarding the expense of private education.  However, both parents can agree in a divorce decree that they want their children to attend private school and agree upon how the education expense will be paid.  Previously, the
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What Divorcing Women Need to Know About Alimony

For many women who face a divorce, the prospects of having to live on half of what used to support you both is frightening — especially for women who have stayed at home to raise the children and now face the prospect of having to look for outside employment. Alimony is not a given in any divorce.  In Nebraska, the court will look at a number of factors in making a decision about the need for alimony and the amount to be awarded.  Under Nebraska Revised Statute 42-365, these factors include: the financial circumstances of the parties the duration of
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What is the Tax Dependency Exemption and Who Should Get It?

The federal government allows taxpayers to exclude from their income an exemption amount for each person who is a dependent of the taxpayer for that taxable year. You can claim a tax dependency exemption if you are a parent who provides support to a dependent minor child. But what happens after divorce when you no longer file joint returns? In Nebraska, the tax dependency exemption is considered an economic benefit similar to an award of child support or alimony. If the parents do not agree how the exemption should be allocated, the judge hearing the divorce case has the power
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Divorce Tax Tips: 5 Most Common Divorce Tax Questions in Nebraska

Do I have to pay income tax when my ex-spouse and I transfer property or pay a property settlement per the terms of our divorce decree? No.  The transfer of property (or payment of a property settlement payment) pursuant to a divorce decree is not taxable.  However, you’ll want to keep in mind the future tax consequences of a subsequent sale, withdrawal, or transfer of assets that you received in a property settlement. Does the payment or receipt of child support impact my taxes? No.  Child support is not taxed as income to the parent who receives it nor deductible
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How to Modify Your Child Support Order

In Nebraska, once a child support order is entered, it remains in effect until the minor child reaches the age of majority (19 in Nebraska), dies, remarries, becomes emancipated, or until further order of the court. “Until further order of the court” means that child support orders are modifiable, that is, they can be changed. The Nebraska Child Support Guidelines sets forth rules as to when the court can modify child support. First, the parent must show to the court that there has been a material change in circumstances that affects the child support calculation. This will usually be a
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Tips for Payment and Reimbursement of Childcare and Uninsured Medical Expenses for Children

The Nebraska Child Support Guidelines recognizes that both parents have an equal duty to provide financial support to their children in proportion to their respective net incomes.  There are three main types of financial support for children that will be addressed in a divorce. Child support Childcare expenses, which are due to the employment of either parent, or to allow the parent to obtain training or education needed to obtain a job or enhance earning potential Reasonable and necessary uninsured medical expenses Pursuant to the Nebraska Child Support Guidelines, payment for childcare expenses and uninsured medical expenses for children is
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How to Pay or Receive Child Support in Nebraska

Once the judge signs an order or decree that sets forth a child support obligation, the order/decree is then processed by the Clerk of the District Court.  The Clerk’s office will then notify the Nebraska Child Support Payment Center (NCSPC) that a child support order has been entered.  This process can sometimes takes up to two (2) weeks. Once the Nebraska Child Support Payment Center receives and processes the child support obligation, the NCSPC will assign each party (the party ordered to pay support and the party receiving support) a unique Agency-Related Person Identification Number.  This is known as your
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Divorce and Financial Aid for College: 5 Factors for Parents to Consider

During the divorce process, spouses are required to make many decisions, especially considering their children and the future of the family’s finances.  One of the benefits of hiring an experienced divorce attorney is to assist you in the decision-making process.  An experienced lawyer can help you avoid potential unintended consequences of the decisions that you make during your divorce.  One consideration that often gets overlooked is how the divorce may impact the ability for children of divorced parents to qualify for college financial aid.  Although the college financial aid process can be complicated, a well-thought-out strategy addressed during the parents’
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