Raising a child can be an expensive venture. Often, Pennsylvania families with the luxury of two incomes struggle to pay the mortgage, pay the car note, buy groceries and pay for all of the extras that come with providing for a child. This struggle is aggravated when a single parent is attempting to do the same but with only one income. Along with the numerous other benefits, child support assists with meeting the basic needs of one’s child.
Fortunately, Pennsylvania parents recognize the need for making timely child support payments. In fact, Pennsylvania leads the nation with an 84 percent payment rate. This translates into more custodial parents receiving the funds needed to help take care of the children.
On the other hand, there are still parents who are unable or unwilling to do their part financially; when this happens, there are steps that can be taken. It is possible for child support payments to be taken from payments such as Social Security benefits, unemployment compensation and even workers’ compensation benefits. Additionally, tax refunds and lottery winnings can be redirected so that payments are made. In addition, liens can be placed against property and professional and driver’s licenses can be suspended for nonpayment. One other option that is used as a last resort is that the delinquent parent can be incarcerated for up to six months.
When a custodial parent has trouble collecting child support from the other parent, it is usually time to seek legal guidance on the best way to proceed. The State of Pennsylvania takes child support matters seriously. The goal is to make sure that the children are taken care of according to the financial standing of both parents.
The family home often becomes a focus when a couple decides that it is time to end the marriage. Should one of the individuals keep the home, or should they sell it? Will the children be better off if they are able to remain in the home, or would a change of scenery be better? While these may appear to be the pertinent questions in the divorce negotiation process in Pennsylvania, there are other, perhaps more important, questions that need to be addressed.
Prior to digging in the heels and insisting on keeping the home, the individual will want to take a careful look at his or her financial picture post divorce. What will the individual’s budget look like? Will there be enough income to cover the expense of keeping the home along with all the other expenses that will need to be paid? In some instances, the simple reality is that it may be a financial struggle for the individual to keep the home. If this is the case, it may be better in the long run to go ahead and sell it.
Another financial concern that will need to be addressed is the tax implications related to the sale of the home or the transfer of financial assets. Depending on the sale price of the home and the structure of the divorce agreement, the individual may be liable for capital gains taxes. Additionally, depending on the way some financial assets are transferred, taxes and penalty fees may be levied.
While, on the surface, it may appear that keeping the family home is a good idea for the Pennsylvania resident, this may not be a prudent financial decision. This, along with a number of other items, is just one of the many financial concerns that the individual will want to review prior to finalizing the divorce agreement. Experienced guidance can help the individual in determining the best way to proceed.
