Skip to content
  • Maryland
  • Virginia
  • Washington, D.C.

Divorce Lawyers

Thyden Gross and Callahan LLPCounselors and Attorneys at Law

301-907-4580

 

Maryland Divorce Legal Crier

News and comments about divorce, child support, child custody, alimony, equitable property distribution, father’s rights, mother’s rights, family law, laws on divorce and other legal information in Maryland.

Posts Tagged ‘Child Support’

Depreciation as Income

Wednesday, February 4th, 2015

In the Mumma case, the wife called the court’s attention to the depreciation deduction that the Husband was taking for his business.  She pointed out that depreciation is a non-cash flow event and so the money is available to the Husband.

The argument on the other side is that equipment really does wear out and needs to be replaced eventually.  When it does, it will take cash flow to purchase new equipment.

Taking a look at the Maryland Child Support Guidelines in Section 12-201 of the Family Law Article, we see that income from self employment means gross receipts minus ordinary and necessary expenses.

However, the statute goes on to say that ordinary and necessary expenses do not include accelerated depreciation, investment tax credits, or any other expenses the court determines in not appropriate to subtract.

So what about straight line depreciation?  Does the fact that the law expressly disqualifies accelerated depreciation but not straight line depreciation mean you get to deduct it from income?  Or does the catch-all provision at the end allow the court to decide?  In the cases I have tried, the trial judges have included straight line depreciation as income.

Are Gifts Income?

Tuesday, January 27th, 2015

Albert  Mumma married Jean in 1952 and they had three children together.   Albert supported the family as an architect.  He had an office in Georgetown.  In 1968 the parties had a violent altercation and they decided to divorce.

The judge awarded $200 a month in alimony and $500 a month in child support to Jean, plus attorney fees and costs.  Albert appealed complaining that he was ordered to pay support of $8,400 a year, while his income was only $9,422 in 1968 and $12,726  in 1969.   Jean countered that, among other things, he received gifts from his parents.

The DC Court of Appeals reversed the trial court, holding that “gifts do not constitute income” and suggested that Albert’s income tax returns would be an appropriate guide to his actual income in the absence of affirmative evidence otherwise.

Mumma v. Mumma, 280 A.2d 73 (1971)

Teen Sues Parents for College Money

Tuesday, March 4th, 2014

by Nelson Garcia

An 18 year old teenager from Lincoln Park, New Jersey has filed suit against her mother and father.

She claims they tossed her out of their home and cut her off financially.

She is suing for immediate support, current private-school fees and future college tuition.

She would not have a case in Maryland and Virginia, where parents are obligated to support children until age 18 unless they are still in high school, in which case it’s to 19 or graduation from high school, whichever comes first.  But that would be it.  In DC child support is to age 21.

Tax Planning for Divorce (Part 5-Payments to Your Ex)

Wednesday, February 27th, 2013

Guest Post by John Ellsworth, Esq.

If you’re paying alimony, you can take a tax deduction for the payments, even if you don’t itemize deductions.

Keep in mind, though, that the IRS won’t consider the payments to be true alimony unless they are spelled out in the divorce agreement. This is another rule for you to memorize: unless the divorce decree spells it out, it’s probably not going to be accepted by the IRS as alimony.

Your ex, meanwhile, must pay income tax on those amounts. Be sure you know your ex-spouse’s Social Security number. You have to report it on your tax return to claim the alimony deduction.

The opposite is true for child support: You don’t get a deduction for paying child support and the recipient doesn’t pay income tax.

Negotiation Tip: Segregation

Thursday, January 17th, 2013

Some issues are just too big and complex to tackle all at once.  What to do about the children is a good example.

But you can eat an elephant if you take your time and take small bites.

That’s what you do in negotiations.  If you get stuck on a problem, start breaking it down into to smaller bites.  Separate the issues.

Segregate the big issue of “children” into custody and child support.

Then take custody and keep breaking it down.  Segregate custody into who will make the legal decisions, where will the child  live, and what will the time sharing schedule look like.

You can even break down legal decisions into separate pieces like who will decide which doctors to use, who will decide where the child goes to school and who will decide what religion to raise the child in.

Sometimes it’s easier to reach agreement with a series of small decisions than trying to tackle the whole thing at once.

75% Divorce Rate in MapleStory

Tuesday, September 20th, 2011

Real world relationships are tough enough but MapleStory, a free online role playing game, has a divorce rate of 75%.

Andy Chalk writes at EscapistMagazine.com that it costs $25 real dollars to get married in MapleStory.

“I was young, naive, and thought I had met ‘the one.’ says 20 year old Tyler, and 19 year old Seth says “She was only out there to get free things off of me.”

On the bright side,MapleStory divorcees don’t pay alimony or child support and they don’t have to go to court.  I wonder if this will be good practice for  these people when they get married in real life.

Maryland’s New Child Support Guidelines

Thursday, April 22nd, 2010

Following reconciliation of the house and senate bills, the Maryland Legislature has passed HB 500 – Child Support Guidelines Revision.

The bill has a new matrix for child support, which goes into effect for new cases filed on or after October 1, 2010, and it will increase the amount that most non-custodial parents will have to pay.  The new guidelines will go up to $15,000 in combined income instead of the old cap of $10,000.   However, you cannot petition for an increase in old cases just because the new law has passed.  There would have to be some other change in circumstances.

The legislature did not pass two other proposed bills discussed here:

SB 577 – Family Law – Grounds for Absolute Divorce – Time Requirements.  This bill would have shortened the required separation period from one year (voluntary) and two years (involuntary) for no fault divorces to six months and one year respectively.

SB 578 – Family Law – Grounds for Divorce.   This bill would have allowed people to obtain no fault divorces while separated but living in the same house.

Felix the Cat and His Magic Bag of Tricks

Thursday, August 13th, 2009

The first image broadcast by network television was a picture of Felix the Cat.  I remember watching Felix on tv when I was a kid.  He had a Magic Bag of Tricks and whenever he got stumped by a problem, he would reach into his bag and pull out some tool or device that would help him solve the problem.

I wish I had a Magic Bag of Tricks in real life.  A lawyer can do a lot of things, but sometimes the tools in my toolbox are limited.  Clients look to their lawyers to solve all sorts of problems.  But first you have to have a problem that the law recognizes as a problem.  For example, I wrote recently that not every marital agreement is recognized by law as an enforceable contract.

The law does not provide a remedy for every wrong.  There is no legal tool that will turn your difficult spouse into a nicer, more reasonable and responsible person.   I can get alimony and child support and property, but I probably cannot recover damages for the hurt you felt during your marriage.  The court can give you a visitation schedule, but it can’t make your child want to visit with you.  I can’t make your spouse settle on your terms and I can’t make opposing counsel return my calls if they don’t want to.

As a mediator said to one of my clients, “I only have a pen, not a magic wand.”

No MD Child Support Revisions This Year

Friday, April 24th, 2009

It may not be a good idea to try to increase child support during a recession.  House Bill 1401 which would have increased Maryland Child Support Guidelines, for the first time in 20 years, did not make it out of committee.  The House Judiciary Committee plans do a “summer study” of the bill.

TGC Lawyers in the News

Thursday, March 26th, 2009

“We will reserve our comments for the court.”  – Lois Finkelstein in “NBA Star Bosh Bashed in Suit for Child Support” by Caryn Tamber of The Daily Record, March 26, 2009.

Nelson Garcia will be on “News Nine” with Andrea Roane (WUSA 9 TV) to discuss the effect of taxes and the economy on divorce, at 9:00 a.m. Friday, March 27, 2009.

James J. Gross was interviewed by KMOX Radio on “Divorce in a Recession”, March 2, 2009.

 
© 2018 Thyden Gross and Callahan LLP. All rights reserved.