The Kentucky version of Divorce Planner
calculates Kentucky guideline child support and prepares child support Worksheets
(Court format) for sole and split parenting arrangements. Input is entered
(See Tour of Divorce Planner) and then all analysis is performed through a
single computer screen which allows "what-if" analysis. Different
scenarios of support can be posted into the summary report of support
cases directly from the analysis screen.
The user enters a simple set of facts with
easy-to-use menus. The software will then use this information to calculate
Kentucky support, calculate all taxes, and generate 15 output reports based on a
single set of data. The user can then do "what-if" analysis from the
unique, single analysis screen in which input can be changed and resulting
after-tax figures can be instantly viewed. Alimony analysis is simple
because you see the results of different alimony amounts on a single
screen including revised child support and taxes are complete and
accurate.
Creating Report of Different Support
Alternatives
You use the Analysis Screen to review different
support alternatives (add alimony, change who claims the kids, create
family support - no child support etc.). You can then create a report with
relevant support alternatives displayed side-by-side for use with clients
and Courts. When support alternatives are created and posted, the user will
then print the desired output reports. After-tax cash reports are
available in detail or highlights formats. This Summary of Support
Alternatives is not restricted to different alimony amounts - any variable
can be changed allowing quick examination of the impact of claiming child
dependency exemptions or family support (all alimony and no child
support). A separate report allows for instant review of 3 alimony levels
set up in a side-by-side report.
Output reports can be exported into Word for
additional editing.
Online help answers questions on divorce taxes
and guideline child support.
Tax calculations are very accurate and software
automatically calculates the federal Alternative Minimum Tax (AMT). The AMT
is now very important in many high income divorce cases in that this
"hidden tax" may significantly erode the expected tax savings in alimony
cases from individuals being in different tax brackets.
Problems with Alimony in higher income
cases
Many practitioners are going to be seeing some very counter
intuitive after-tax figures in higher income alimony cases (income range
for payor from $200,000 to $450,000. The tax law changes of 2003 are going
impact many divorces in that the Alternative Minimum Tax (AMT) is going to
be a factor by reducing or totally eliminating the favorable tax impact of
alimony from different tax brackets. An annual alimony amount of $50,000
might have been expected to create joint tax savings from different tax
brackets of $5,000 ($50,000 times 10% tax bracket difference) might now
create only $2,000 of tax savings. Alimony may not be worth very much in
some high income cases because of the Alternative Minimum Tax which is
greater in states with high state and local tax rates. FinPlan software
automatically calculates the Alternative Minimum Tax, so you will always be
aware if the AMT is eroding the value of alimony in a divorce.
Saving Different Tax
Scenarios
5 different tax scenarios can be saved in a
side-by-side comparative report making evaluation of the timing of divorce
(this year vs. next year) very simple. A Married, Joint tax calculation is
automatically prepared based on your case facts for the two individuals.
FinPlan Divorce Planner's Unique Capabilities to Keep You
from Making Mistakes
FinPlan is the only family law software
that will alert you before you make mistakes. You will be informed
that alimony in lower income divorces may actually increase the joint
taxes (from loss of Earned Income Credit), so you instantly know when NOT
to use alimony (you can use non-taxable spousal support). You can
instantly see the tax savings from either parent claiming the child
dependency exemption and under 17 tax credit. You instantly know if the
AMT is impacting your case. FinPlan doesn't just calculate numbers - it
interprets numbers to show divorce professionals how to use taxes to
increase the total after-tax cash available to the parties. Lower taxes
equate to more total cash so there is more to share. FinPlan software has
been showing family lawyers, mediators and financial professionals how to
maximize cash in a divorce for over 16 years. Simply stated, FinPlan has a
proven track record and several thousand satisfied customers all across
the country.
Several Kentucky specific output reports are shown below.
You need to have Adobe Acrobat Reader to view these reports. If you do not
have Acrobat Reader you can download a free copy
at Adobe's Acrobat web site.