It’s That Time of Year! Truing up child support and maintenance
It has become increasingly more common for parties to be required to “true-up” child support pursuant to the Judgment for Dissolution of Marriage entered in their case. Typically, after year-end income information is available, the parties share their respective earnings for the year and calculate the total amount of child support that should have been paid pursuant to their Judgment. This allows bonuses, raises and other variations to be considered to determine the correct amount of child support to be paid. Each person’s exact income is then used to calculate any additional child support that must be paid, or in the case of overpayment, credited or refunded to the payor. The details of the timing of the true-up and the exact procedure should be set forth in the parties’ Judgment for Dissolution of Marriage.
While less common, sometimes parties also true-up maintenance (also known as spousal support or alimony). Sometimes this is done instead of requiring payment at the time the payor receives a bonus or other discretionary income. It is also sometimes done when one person’s income may significantly increase in the near future, such as when one party is switching from part-time to full-time employment.
The attorneys at Collins Family Law have significant experience in calculating true-ups, including ensuring that the correct tax calculations are used. Contact Collins Family Law, LLC to ensure your maintenance and child support true-ups are calculated properly.