Amending a Divorce Decree

[SpaceGoat]

What is the name of your state (only U.S. law)? Indiana

Can a former spouse have the divorce decree amended regarding tax exemptions?

I have been divorced for nearly 10 years. In our mutually agreed upon divorce decree, I was awarded the tax exemptions for our 3 minor children. My ex-husband makes considerably more money than we do and he says that he is going to court to have a judge amend the divorce decree so that we alternate who claims the children on our taxes. I was not aware that a judge could amend a decree like that and would like your input. I want to know if I am stressing myself out worrying about this for no reason or if this is something that he can have done. Thank you sincerely.

 

[Ohiogal]

What is the name of your state (only U.S. law)? Indiana

Can a former spouse have the divorce decree amended regarding tax exemptions?

I have been divorced for nearly 10 years. In our mutually agreed upon divorce decree, I was awarded the tax exemptions for our 3 minor children. My ex-husband makes considerably more money than we do and he says that he is going to court to have a judge amend the divorce decree so that we alternate who claims the children on our taxes. I was not aware that a judge could amend a decree like that and would like your input. I want to know if I am stressing myself out worrying about this for no reason or if this is something that he can have done. Thank you sincerely.

The court can amend ANYTHING dealing with the children until they are emancipated. That includes child support, custody, health insurance for the children and who can claim the exemptions.

 

[stealth2]

What is the name of your state (only U.S. law)? Indiana

Can a former spouse have the divorce decree amended regarding tax exemptions?

I have been divorced for nearly 10 years. In our mutually agreed upon divorce decree, I was awarded the tax exemptions for our 3 minor children. My ex-husband makes considerably more money than we do and he says that he is going to court to have a judge amend the divorce decree so that we alternate who claims the children on our taxes. I was not aware that a judge could amend a decree like that and would like your input. I want to know if I am stressing myself out worrying about this for no reason or if this is something that he can have done. Thank you sincerely.

If Dad will benefit from the exemptions more than YOU do (your spouse's income really doesn't factor in), a judge may well give Dad the ability to claim the kids. Which seems right.

 

[LdiJ]

If Dad will benefit from the exemptions more than YOU do (your spouse's income really doesn't factor in), a judge may well give Dad the ability to claim the kids. Which seems right.

I agree, however the fact that dad's income is larger doesn't necessarily mean that he will benefit more than mom.

Mom, Just FYI, the most common division when there are three children is that each of you get to claim one specific child each year, while you alternate claiming the third child.

 

[Bali Hai]

I agree, however the fact that dad's income is larger doesn't necessarily mean that he will benefit more than mom.

You mean if dad pays less taxes, his CS will increase?

 

[LdiJ]

You mean if dad pays less taxes, his CS will increase?

No, CS has nothing to do with who claims the tax exemptions for the child.

A low income parent can actually benefit significantly more than a higher income parent in regards to claiming children. I will give you an example.

A single parent with primary custody of three children, with an income of 20429.00, and withholding of 1109.00 will end up with a federal refund of: 9157.00 with the children and almost nothing without the children.

A single non custodial parent (or the parent with the least overnights with the children) with an income of 60,000, and withholding of 10,000, will end up with a refund of 7214.00 with the children, and 1866.00 without the children.

As you can see, the custodial parent benefits significantly more, even though the income is 1/3 of the income of the non-custodial parent. Almost 4000.00 more.

 

[Ohiogal]

No, CS has nothing to do with who claims the tax exemptions for the child.

A low income parent can actually benefit significantly more than a higher income parent in regards to claiming children. I will give you an example.

A single parent with primary custody of three children, with an income of 20429.00, and withholding of 1109.00 will end up with a federal refund of: 9157.00 with the children and almost nothing without the children.

A single non custodial parent (or the parent with the least overnights with the children) with an income of 60,000, and withholding of 10,000, will end up with a refund of 7214.00 with the children, and 1866.00 without the children.

As you can see, the custodial parent benefits significantly more, even though the income is 1/3 of the income of the non-custodial parent. Almost 4000.00 more.

Actually the bolded can be a consideration in setting child support.

 

[LdiJ]

Actually the bolded can be a consideration in setting child support.

Not in Indiana, which is the OP's state.

 

[Bali Hai]

No, CS has nothing to do with who claims the tax exemptions for the child.

A low income parent can actually benefit significantly more than a higher income parent in regards to claiming children. I will give you an example.

A single parent with primary custody of three children, with an income of 20429.00, and withholding of 1109.00 will end up with a federal refund of: 9157.00 with the children and almost nothing without the children.

A single non custodial parent (or the parent with the least overnights with the children) with an income of 60,000, and withholding of 10,000, will end up with a refund of 7214.00 with the children, and 1866.00 without the children.

As you can see, the custodial parent benefits significantly more, even though the income is 1/3 of the income of the non-custodial parent. Almost 4000.00 more.

It sounds like OP has remarried and may not even work outside the home. Who should be give the exemption if that's the case.

 

[single317dad]

It sounds like OP has remarried and may not even work outside the home. Who should be give the exemption if that's the case.

http://www.in.gov/judiciary/rules/child_support/

Tax Exemptions. Development of these Guidelines did not take into consideration the awarding of the income tax exemption. Instead, it is recommended that each case be reviewed on an individual basis and that a decision be made in the context of each case. Judges and practitioners should be aware that under current law the court cannot award an exemption to a parent, but the court may order a parent to release or sign over the exemption for one or more of the children to the other parent pursuant to Internal Revenue Code § 152(e). To effect this release, the parent releasing the exemption must sign and deliver to the other parent I.R.S. Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents. The parent claiming the exemption must then file this form with his or her tax return. The release may be made, pursuant to the Internal Revenue Code, annually, for a specified number of years or permanently. Judges may wish to consider ordering the release to be executed on an annual basis, contingent upon support being current at the end of the calendar year for which the exemption is ordered as an additional incentive to keep support payments current. It may also be helpful to specify a date by which the release is to be delivered to the other parent each year. Shifting the exemption for minor children does not alter the filing status of either parent.

The noncustodial parent must demonstrate the tax consequences to each parent as a result of releasing the exemption and how the release would benefit the child(ren). In determining when to order a release of exemptions, it is recommended that at minimum the following factors be considered:
(1) the value of the exemption at the marginal tax rate of each parent;
(2) the income of each parent;
(3) the age of the child(ren) and how long the exemption will be available;
(4) the percentage of the cost of supporting the child(ren) borne by each parent;
(5) the financial aid benefit for post-secondary education for the child(ren); and
(6) the financial burden assumed by each parent under the property settlement in the case.

So, basically, whoever the judge decides should get the exemptions, gets them.

 

[LdiJ]

It sounds like OP has remarried and may not even work outside the home. Who should be give the exemption if that's the case.

Singledad gave good info on that...but I will add the following:

Under the IRS rules it would still belong to the custodial parent, filing a joint tax return with his/her spouse.

 

[Bali Hai]

Singledad gave good info on that...but I will add the following:

Under the IRS rules it would still belong to the custodial parent, filing a joint tax return with his/her spouse.

The reason I ask is because I know someone who is considering marrying a woman with three small children for that very reason.

Thank you.

 

[LdiJ]

http://www.in.gov/judiciary/rules/child_support/



So, basically, whoever the judge decides should get the exemptions, gets them.

More or less yes. However, it is virtually universal that Indiana judges divide the exemptions between the two parents. If there is only one child, then its every other year. If there are two or more children, then each parent gets to claim at least one child every year, and if there are three or any odd number of children that child is rotated.

 

[stealth2]

The reason I ask is because I know someone who is considering marrying a woman with three small children for that very reason.

Thank you.

That's a stupid reason to marry.

 

[Bali Hai]

That's a stupid reason to marry.

Maybe, but with tax advantages and untaxed child support coming in, it's financially attractive. When the children are grown, divorce and find another one.