TOPIC: FAMILY LAW

Question 1: Diane and Jason divorced last year after 35 years of marriage. They both worked Diane as an economist, and Jason as an accountant. They both contributed to the domestic help they needed to run their household. Can Diane reasonably expect to receive spousal support from Jason? Why?

Question 2: When Barry and Joanne had their two children, they agreed that Barry would stay home with the children for a few years. When the youngest was six, Barry and Joanne divorced, and agreed that Barry would have custody of the children as Joannes job required her to travel a great deal. Joanne makes $120,000 a year, while Barry makes $23,000 teaching part-time. Joanne agreed to pay Barry $1,800 a month in spousal support, and $1,500 a month in child support. Based solely on this information, calculate each persons TAXABLE ANNUAL INCOME in each of the following circumstances: (Please show calculations)

a. Joanne is paying $1,800 a month in spousal support and $1,500 in child support. Barry runs in to financial difficulties, and Joanne gives him a one-time extra payment of $5,000.

Barrys taxable annual income = ?

Joannes taxable annual income = ?

b. The court order states that Joanne pays $1,800 a month in spousal support and $1,500 in child support. For the current year she only paid a total of $2,800 a month.

Barrys taxable annual income = ?

Joannes taxable annual income = ?

c. Joanne is paying $1,800 a month in spousal support and $1,500 in child support. However, she got behind on several months payments, and Barry had to go to court to get her to pay. Joanne paid all that was due but Barry incurred legal expenses of $3,500.

Barrys taxable annual income = ?

Joannes taxable annual income = ?

d. Joanne pays $1,500 in child support but paid Barry $200,000 lump-sum instead of paying monthly support payments.

Barrys taxable annual income = ?

Joannes taxable annual income = ?