Will the fiscal cliff changes affect your child support payments? As divorce mediators, we can tell you – the short answer is probably, but not quite yet. And having a clear support agreement in place will minimize any potential problems.
You may have already seen changes to your take home pay. Currently, Social Security is financed by a 12.4 percent tax on wages up to $113,700, with employers paying half and workers paying the other half. So your maximum share in 2013 is $7,049. Our government reduced the share paid by workers from 6.2 percent to 4.2 percent for 2011 and 2012. However, this benefit expired on December 31. So, if you are first determining child support using the current child support guideline program, until the new guidelines are released for 2013 (sometime in the spring), the program will underestimate the employee portion of taxes (the old 4.2% instead of the updated 6.2%). Parents can consult with a divorce mediator to help calculate child support for this and any future years. A divorce mediator can help save you time, money and decrease stress when addressing child support, as well as other areas such as issues of parenting (child custody), division of assets and liabilities, and spousal support (alimony).
Written by Randi M. Albert, JD and Michelle Weinberg. To read the full article, click here.