When it comes to buying a car, one of the most important considerations is the loan. And, while many focus on trying to qualify for the best rate while paying the least amount out of pocket, those with poor credit simply focus on trying to qualify for funding period. In most cases, borrowers with poor credit have to rely on high risk lenders in order to secure the funding they need to make a purchase of this size. However, if they are either making or receiving child support payments, the qualifying process can be significantly different.
How Income is Viewed by Lenders
Before beginning the loan process, it is important to understand how lenders view income. When a borrower decides to borrow money from a lender, the lender begins the process of underwriting the loan. This process allows the lender to look at the loan from a risk perspective. The main risk, of course, is that the borrower won’t repay the loan. In order to offset this risk, the lender looks at a number of things: a borrower’s credit history, the amount of money they earn and how long they have been with their current employer, the number of existing debts they have, and a few other items.
Borrowers with a strong history of repaying their debts on time, have a low number of existing debts and an adequate income to pay for their monthly obligations represent a lower risk than those who have had a few late payments or charge offs or who have recently changed jobs. This means that they not only qualify for the loan, but usually wind up getting the best interest rates and are required to pay less down.
Written by Jordan Bourland. To read the full article, click here. For more information on family law and divorce matters in San Diego and/or Riverside county, please visit our website at www.jwbrookslaw.com, and follow us everywhere @jbwrookslaw.
Some child support payments in Maryland could soon go up – a change that state Human Resources Secretary Brenda Donald called “long overdue.”
For the first time in two decades, lawmakers are poised to revise the guidelines that courts use to set child support when divorcing or unmarried parents cannot agree on an amount. Those guidelines are based on household expense data from the 1970s, and although they accommodate rising incomes, advocates say they don’t account for the escalating costs of raising a child.
Human Resources officials estimate there are about 500,000 child support orders in Maryland – a mix of private agreements and court cases.
Written by Julie Bykowicz. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com
In two recent cases, the Tax Court ruled on the validity of a dependency exemption release to a noncustodial parent. Taken together, the cases illustrate how a properly executed and filed Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is the key to releasing a claim of exemption and outweighs state court orders.
In Armstrong, the court denied the deduction and child tax credit to a noncustodial father who did not attach Form 8332 to his 2007 tax return. The taxpayer, Billy Armstrong, did attach a copy of an “arbitration award” indicating he would be entitled to the dependency exemption for one of his and his ex-wife’s two children if he stayed current with child support. Upon audit, he also provided a 2003 state court order that incorporated the arbitration award and a 2007 state court order signed by the ex-wife that explicitly required the ex-wife to provide him with an executed Form 8332 or its equivalent if his support payments were current, which they were. The IRS rejected his claim because the award and orders were conditioned upon current payment of child support. The majority opinion of the Tax Court agreed that the state court orders did not unconditionally declare that Armstrong’s ex-wife would not claim the exemption and therefore could not substitute for Form 8332.
Written by Karyn Bybee Friske and Darlene Pulliam. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com
There are several changes from the current guidelines to note, including:
The 2013 guidelines calculate each parent’s percentage of total available income up to $250,000 per year and a “combined support amount.” This is a different method of looking at support as a total obligation of both parents.
The 2013 guidelines now clarify what is to occur when the combined income of the parties’ exceeds $250,000 per year. The guidelines are applied on the first $250,000 in the same proportion as the Recipient’s and Payor’s actual income compare to the total combined income. There is now a space on the form to list how much income remains available to either parent above the $250,000 combined total.
Written by Robin Lynch Nardone. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com
I attended a social gathering in Denmark hosted by a successful businessman with two teenage daughters. “Their mom didn’t want custody,” he explained, “so I’ve had them since the youngest was four years old”. The mother had initiated the divorce, but had not sought any contact with the kids other than an optional twice/month (every other weekend) visit. “It isn’t the life that I expected to live, but it is a good life.” The Americans at the party were shocked by this. What about the maternal instinct? Was it different in Denmark than in the U.S.? “Most middle class parents who divorce simply split the children 50-50,” explained a Dane. “Children aren’t cash cows in Denmark, except for lower class people with six children, for whom state subsidies and child support from the other parent can be a significant source of income. The previous government tried to limit this by paying only for the first two children. But they watched Muslim women in black burkas rioting across the bridge in Sweden so the new government restored the benefits for an unlimited number of children.” Child support payments in Denmark can continue until a child turns 24 (if the kid is still in school, which of course he or she is likely to be in Europe, the original home of infinite adolescence). Our host’s income was easily high enough that in Massachusetts he would have been tapped by a divorce lawsuit plaintiff for $50,000 tax-free dollars per year in child support (roughly $1 million over 20 years; see worksheet). Could it really be the case that children who supposedly cost $1 million to rear in Massachusetts would yield only minimal child support in Denmark, where the cost of almost everything is far higher?
Written byPhilip Greenspun. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com
President Obama’s Father’s Day speech included one provocative, yet very declarative, sentence: “We should reform our child support laws to get more men working and engaged with their children.” Obama didn’t elaborate, but we can build on what he said because, yes indeed, child support laws urgently need “reform.”
Many fathers work long hours and make incredible sacrifices for their families. Child support formulas are based on the ridiculous notion that a father would make those same sacrifices for an ex-wife who is living with her new husband or boyfriend and for children he never or seldom sees.
Many fathers would happily do more to support their children if they got to see their kids more and were more engaged in their lives. But current child support laws have reverse incentives: The more the mother prevents such contact, the more child support she receives.
Written by Phyllis Schlafly. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com
As an accomplished mountaineer who has scaled many of the world’s highest peaks, including Mount Everest, Annabelle Bond has found herself in some dicey situations.
Now she finds herself in a very different sort of predicament — a nasty legal fight between a former lover and her current one.
Her boyfriend, Andrew Cader, a former Goldman Sachs executive and part owner of the Tampa Bay Rays baseball franchise, is accused of conspiring with Ms. Bond to hide her true financial condition so that she could secure more than $50,000 a month in child support payments last December from the Wall Street financier Warren G. Lichtenstein, who has a 5-year-old daughter with the British socialite.
Written by Peter Lattman. To read the full article, click here. For more information on family law attorneys, visit our website http://www.jwbrookslaw.com