Frequently Asked Questions
What’s the best way to get in touch with Jacki to see if she’s a good fit for my case?
The best way to reach out to Jacki is by clicking on the link below to schedule a
complimentary 30-Minute Consultation. Jacki conducts these over Zoom or
phone (your choice).
How is Child Support determined in Michigan?
In Michigan, as in all states, Child Support is based on a set formula. In general, both parents’ gross income is taken into consideration along with the overnights for each minor child. Day-care costs and health insurance premiums paid by one or both parents are also considered. For more detailed information, click here to read a Guide for Parents to Michigan Child Support.
Is Child Support taxable income to the recipient and tax-deductible for the payor?
No, child support is not treated as taxable income by the IRS. Click Here to Read IRS Guidelines on Child Support. If you’re set to receive $1,000 per month in Child Support, you get to keep that entire amount. Similarly, if you’re paying $1,000 per month, that’s what it costs you out-of-pocket.
How is Spousal Support determined in Michigan?
Spousal support (alimony) in Michigan is more complicated than Child Support, which is based on a set formula. There isn’t a formula for Spousal Support in Michigan. (If you live in New Jersey or other states like it, you DO have a formula). There are several factors the Courts can look at when determining support. Highly respected Michigan attorney, Renee Gucciardo, Esq. gives more information on the legal perspective on spousal support here.
From a financial perspective, two of the largest factors considered are “need” and “ability to pay”. This is where a CDFA® can help. Both “need” and “ability to pay” are based on each party’s income, living expenses and assets available to them. A CDFA® uses budgets, income, and asset information to create an analysis using tax and financial planning software. This analysis (and their expertise) can help clients, attorneys, mediators and even judges arrive at a reasonable and well-informed support amount and duration.
Should I keep the house?
An important question! Your decision to keep your house should be based on your specific circumstances. The following are just a few considerations. A qualified CDFA® can help streamline your analysis.
- What is the mortgage and can I afford to re-finance?
- Are interest rates lower or higher now than my current mortgage?
- If I can’t re-finance, can I assume the current loan?
- What are the other carrying costs of the home?
- Taxes and insurance
- Utilities
- Maintenance, Repairs and Replacements
- Lawncare, snow removal, landscaping, etc…
- What is the opportunity cost to you of keeping the house versus a share of other marital assets?
- Will you be able to easily sell in the future if you change your mind?
- Are you willing to take on 100% of the closing costs and sales commission if you sell in the future?
- Are there any embedded capital gains that may be subject to taxes when you sell?
Should I accept my spouse’s offer for property division and spousal support?
As in most divorce-related questions, the answer is “it depends”. Accepting an offer on the table is tempting, even if it doesn’t work for you in the long-term. Let’s face it, most people want the settlement over so they can start the next part of their life as soon as possible. Most people also want to save money on legal fees. The longer a case lingers, the more expensive it is.
The real answer is, before you decide if you should take the offer, you need to understand how it will impact your finances and your family. It needs to be viable short-term (do you have enough money to pay your bills every month?) and long-term (are your assets minus your liabilities increasing or depleting over time?). As an experienced CDFA®, Jacki acts as a thinking partner and coach to help analyze these important, life-changing questions.
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New clients: Book a 30 minute complimentary call with Jacki.
Existing clients: Book a 60 minute appointment with Jacki.