Financial Planning for Parents After Divorce
Many changes come with a divorce, and adjustments to your finances are part of that. Although you and your ex-spouse are no longer together, this does not mean you’re left to handle your family’s financial hurdles alone. Despite any animosity that may be present between you and your ex, it is essential to determine who is financially responsible for various aspects of raising your children. If you cannot resolve these issues on your own or through mediation, you might consider arbitration.
Child Support
Depending on your custody arrangement, you may have been granted child support. The child support agreement is determined based on factors such as the amount of time your child spends with you, your income, the cost of your child’s health insurance, childcare costs, and sometimes the additional cost of living expenses. Child support payments are paid by the non-custodial parent and are typically enforced until the child reaches the age of 18 and graduates from high school. You can try using a North Carolina child support calculator, but keep in mind that this is only a guideline.
College Plans
Past the age of 18, there is no legal requirement for a spouse to pay child support. This can be a tricky situation if your child intends to go to college. However, many parents voluntarily agree to assist with college expenses. This is an agreement that must be reached between you and your ex.
Yearly Considerations
When parents share custody, there is often a question of who claims the children as dependents. The Internal Revenue Code states that the parent who keeps the children for the majority of overnights should claim the tax exemptions. Also, The North Carolina Child Support Guidelines state that the parent receiving child support should claim the exemptions. (Read more about taxes after divorce.)
Although your divorce is rooted between you and your spouse, the result impacts your children. If at all possible, planning for your children’s care and financial security should remain a team effort even after you and your spouse have parted ways.
If you need more information about planning your budget after divorce, check out these related blog posts or visit us during our next workshop, held on the second Saturday of every month.
