Why Is Gross Income Important to my divorce – Child Support v. Alimony
It is important to remember the tax effects of child support v. alimony. As you can see from our last post "Gross Income Defined" alimony is specifically listed as a taxable event. However, child support is not.
It is important to structure child support and alimony to have the best net affect on the party. In many cases there is a balance between how much alimony is paid and how much child support is paid. The point is to have the best net effect, after taxes to you the client.