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DIVORCE HEADQUARTERS NEWSLETTER Issue #9, March 2001 Thanks to you, our loyal visitors, Divorce Headquarters is growing by leaps and bounds. We strive to continue to make DivorceHQ.com the best site on the Internet for divorce information and resources. Know someone else going through the process? If you think they could benefit from this newsletter feel free to pass it on to them. No problem lasts forever. No matter how permanently fixed in the center of our lives it may seem, whatever we experience in this ever-changing life is sure to pass. Take one day at a time, don't fret over things you can't control, and believe it or not, you will one day wake up and realize that you made it through and you have moved on. In this Issue:
1. New Bankruptcy Law Passes House and Senate By now you have probably heard about the sweeping legislation passed by the both the House and Senate last week. President Bush supports the legislation that would drastically change the bankruptcy laws, as they now exist. You may be wondering if this can affect you. Yes, it can. It would make it harder for people to erase their credit card and other debts in bankruptcy court. It applies new standards for deciding whether people filing for bankruptcy should be forced to repay their debts under a court-approved reorganization plan, under Chapter 13 of the Bankruptcy Code, rather than having their unsecured debt dissolved under Chapter 7 of the code. In other words, if a debtor is found to have enough income to repay at least 25 percent over five years, a reorganization plan generally would be required. Bankruptcy judges would have less discretion than they do now. According to a press release issued by the nation's top divorce and matrimonial attorneys, it will adversely affect child support payments across the country. Child support payments currently receive priority in bankruptcy proceedings. Under the new bill, the deferral or relief from credit card payments, technically known as their dischargeability, would be limited, so that children and credit card payments would have the same priority, and payments would be split between them. The following is an excerpt from an article submitted by one of our professional members. For full text of all articles visit http://Divorcehq.com/articles.html 2. Alimony and Child Support by Carol A. Butler, PhD and Dolores D. Walker, M.S.W., J.D. In many divorces, alimony and child support create the most anxiety for couples about to begin negotiating a settlement, but in reality they are often the easiest issues to resolve. Expectations or fears about alimony are usually unrealistic, and the minimum amounts required for child support are quite specific and easy to calculate for most families. In this section we will explain what goes into making a decision about alimony, and we will define the three types of alimony (permanent, temporary, or rehabilitative) which it may be appropriate to consider. We will also explain the role of the child support guidelines provided by every state, and how you can make your own decisions in mediation about child support. The word alimony describes support payments made by one ex-spouse to the other. In some states this is called maintenance or spousal support. Few states have legal guidelines about alimony. Some states continue to grant long-term alimony if there has been a long marriage and there will be a significant disparity in earning capacity, but in recent years the trend has been away from providing life-long income for the former spouse. In most states, alimony is paid if there is a significant imbalance in income, and only to allow the less-moneyed person to become self-supporting over a specific period of time through education or special training. Spousal support is also sometimes provided for a specific period of time so that a parent can stay home to care for a very young child. Unlike alimony, each state does have guidelines which describe what child support must include. In this section, we answer several questions about how child support payments are calculated. Your own agreement may vary from the guidelines in your state, but only in rare circumstances is it permissible for the total amount spent on your child to be lower than the guidelines' minimum. In most situations, couples find that the minimum amounts described in the guidelines are affordable, and we have found in many of the divorces we have mediated that parents were willing to commit more than the state requires so that they could provide "extras" for their children. If there is very little money or income, child support will be considered first. The best interests of the child is an important principle in divorce law, so alimony can only be discussed after provisions have been made for the children's needs. The IRS treats child support and alimony very differently. For the full version of their article including a list of commonly asked questions about alimony and child support, go to: http://www.divorcehq.com/articles/alimonysupport.html ABOUT THE AUTHORS Dolores D. Walker, M.S.W., J.D. is an attorney and psychotherapist specializing in mediation with a practice located at 153 Waverly Place, Suite 1111, New York, NY 10014 Dolores can be contacted by phone at (212)691-6073 or or Visit Web Site 3. Divorce Terminology Child Support Guidelines - Sometimes, when you're new to the process of divorce you hear certain phrases and you wonder what they may need or how they will affect you. Many times you may have heard the term child support and child support guidelines. When your attorney talks about child support guidelines he or she is referring to the amount of child support to be paid, under normal circumstances, according to a schedule established by the state, based upon income. It is federally mandated that all states establish guidelines for child support. The way in which a state determines the amount of child support is often very confusing. Keep in mind that the states establish their guidelines based on many things, including the earning ability in your area as well as the cost of living. * * * * * * * * * * * * * * DivorceHQ.com is about to launch our latest addition to the site. We will be adding a free child support calculator that will assist you in determining your child support obligation. 4. HUMOR I'd live life in the fast lane but I'm married to a speed bump. |
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