What does unallocated support mean?

Unallocated support (sometimes called “family support”) allows you to combine child support and alimony together so that the entire payment of both becomes a tax deduction to the payer and the recipient must pay taxes on the support.

What does unallocated mean in court?

Unallocated support, in the context of family law, refers to a total amount for maintenance and child support, that doesn’t specify a specific amount for either.

How are family support payments treated in California?

The term “Family Support” is a strategy supported in California based upon IRS tax code. Spousal support however is taxed for the recipient, and tax deductible for the payor. If the Court orders “Family Support” the entire amount is taxable to the recipient, and tax deductible to the payor.

What is family support in California?

A California family support order consists of child support and spousal support. In other words, a family support order combines child and spousal support into one payment. The court makes no distinction between the two payments.

Is Family Support considered alimony in California?

Memo. 1998-2, the United States Tax Court ruled that family support, which under California law is defined as an “unallocated combination of child support and spousal support”, is not “alimony” for purposes of Internal Revenue Code (hereinafter “IRC”) 71(b), and is therefore not deductible to the payor under IRC 215.

Is child support taxable in California?

People who agree to family support typically do so for tax purposes. Family support can be treated as 100% taxable/deductible like spousal support, or it can be treated as 100% non-taxable/non-deductible like child support.

Can spousal support be modified in California?

Unlike child support, a court order can terminate a previous jurisdiction over spousal support in California. In other words, the court can modify a spousal support order at any time in the future. This power includes the court’s ability to terminate support upon changed circumstances.

Is alimony in California for life?

If either spouse requests a change, California courts can review and modify these alimony orders indefinitely, or at least until the supported spouse remarries or dies. There is no “Ten Year Rule” that entitles the supported spouse to alimony for life.

Is CA A 50/50 divorce state?

Every state utilizes different property division laws. Because California law views both spouses as one party rather than two, marital assets and debts are split 50/50 between the couple, unless they can agree on another arrangement.

Unallocated support, in the context of family law, refers to a total amount for maintenance and child support, that doesn’t specify a specific amount for either.

Should I Opt for a California family support order?

Opting for a family support order may be in your best financial interest if you or your spouse are paying or receiving both child and spousal support. What is a California Family Support Order? A California family support order consists of child support and spousal support.

What are the child support laws in the state of California?

California law requires courts to follow statewide guidelines when establishing support orders; however, both parents can always reach their own agreement about a child support, spousal support or family support order.

Is family support in a California divorce taxable?

Furthermore, payments made under a California family support order in divorce are also reportable as taxable income by the recipient. This is because family support in a divorce is an unallocated award of spousal and child support.