Tax Brake with Robert G. Nath, Esq.

Karen and Dean were married in 1980. They had two sons by 1984. Then the discord started and both wound up in divorce court. Karen got the kids, and the court ordered Dean to pay $400 per month in child support. If he did (“all child support”), he got the tax exemption.

But he didn't. So Karen took him back to divorce court. The court held him in contempt and threw him in jail. Suddenly, Dean saw the light and paid $15,000 in back payments. But that was still not full payment.

By this time it was 1996. Karen filed her tax return, claimed her two sons and a child care credit. The IRS disallowed the exemptions, claiming Dean, not Karen, was entitled to them under the divorce decree. How much was at stake here? The princely sum of $2,134. THAT's how much the IRS wanted from Karen.

Now, let's pause to absorb the full picture: Dean and Karen divorce. Karen raises the boys, with all the hassles that effort entails. Dean balks; Karen has to go back to court and get him thrown in jail to squeeze out a payment. Dean pays but not in full, leaving Karen $15,000 short. And the IRS goes after…KAREN! (Maybe their case selection standards could use a little oil, no?)

Unbowed, Karen took the IRS to court. The IRS was represented by an attorney. Karen was not. Who won? Yes, Karen won. The court said she got the exemptions because Dean didn't pay ALL the child support, and his entitlement was conditioned on that. Karen got the child credit too because she was entitled to the two exemptions.

So, justice triumphed. The sad part is that Karen had to go to court at all, and over so small a sum.

The lesson: Watch the details. Be careful when you enter into divorce decrees, to ensure an enforcement mechanism.

This website and the linked publications contain the opinions and ideas of its author(s) and are designed to provide useful discussion to the reader on the subject matter covered.  Any references to products or services do not constitute or imply an endorsement or recommendation.  The advice or discussion presented in this website or linked publications are not intended for use by any particular person and do not constitute the rendering of legal, accounting, financial, or other advise of any type.  The publisher and the author(s) specifically disclaim any responsibility for any liability, loss or risk (financial, personal or otherwise) which may be claimed or incurred as a consequence, directly or indirectly, of the use and/or application of any of the contents of this website or the linked publications.  Information on this website and linked publications is provided "as is" without any warranty of any kind, either express or implied.  All intellectual property, including without limitation trademarks, trade secrets and copyrights, are the property of Robert G. Nath, Esq. and any unauthorized use thereof is strictly prohibited.  Any person is hereby authorized to view the information available on this website for informational purposes only.  No part of the information on this site may be used, redistributed, copied or reproduced without the prior written consent of Mr. Robert Nath or LawTek Media Group, LLC.  Linked websites are not under the control of Mr. Robert Nath or LawTek Media Group, LLC and no representation whatsoever is made about any other website (or information found therein) which you may access through this website.  Links are provided only as a convenience and the inclusion of any link does not imply endorsements or acceptance of any liabilith whatsoever for the contents or the use of such website.

IN NO EVENT WILL MR. NATH BE LIABLE TO ANY PARTY FOR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES WITH ANY USE OF THIS WEBSITE, OR ON ANY OTHER LINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  THE ENTIRE RISK ARISING OUT OF THE USE OF ANY INFORMATION FOUND HEREIN REMAINS WITH THE RECIPIENT.

BY USING THIS WEBSITE AND ANY LINKED WEBSITE OR PUBLICATIONS REFERENCED THEREIN, THE USER OR READER AGREES IN ADVANCE WITH ALL OF THE ABOVE TERMS AND CONDITIONS AS A CONDITION PRECEDENT TO SUCH USE.

No information or materials posted here are intended to constitute legal advice, nor can we guarantee the accuracy of posted information, especially as to each individual situation. LawTek does not independently check the information contained herein and does not refer or endorse any product, service, or firm. This site does not constitute an attorney-client relationship; local counsel should always be consulted.