Accuracy & Easy to Use Menus Are Why So Many Family Lawyers & Financial Professionals ~ Let FinPlan Do the Figuring
The Oregon version of Divorce Planner calculates Oregon
guideline child support and prepares Oregon child support worksheets (Court
format) including shared parenting time. 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 program will then use this
information to calculate Oregon 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 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 with annual or monthly numbers and are even 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 $500,000. 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. The AMT is an issue in Oregon high income divorces because of
the high Oregon state tax rate.
Posting Different Tax
Scenarios
5 different tax scenarios can be posted 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 Tax 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.
Alimony Analysis in Oregon
Analysis of cases with alimony is now more
difficult in Oregon. In 2001 the Oregon Working Family Credit was increased
significantly and this is having a very significant negative impact on
alimony cases. You are going to find that in many cases, adding alimony to
a settlement is going to increase the joint taxes of the parties and will
thus be a negative influence in divorce cases. In these situations, you
should be using Non-Taxable Maintenance instead of alimony if the cash
needs of the receiving spouse warrant additional support over child
support. This situation is primarily when the support receiver has
incurred child care expenses (eligible for Oregon Working Family Credit) and does
not own a home, so they have no itemized deductions for taxes. This will
primarily hurt the parent receiving the alimony.
FinPlan software will identify
this situation when alimony is actually increasing the joint taxes of the
two parties and in these case you should be using Non-Taxable Maintenance
instead of alimony. Non-taxable maintenance will work just like alimony in
changing guideline child support, but there are no tax implications to
non-taxable maintenance.
The case on the website shows
a negative after-tax cash impact of $1,940 from alimony in a case where
father makes $68,000, mother makes $26,000, there are 2 children and child
care costs are $300 per month. YOU SHOULD BE LOOKING FOR THIS and FinPlan
software will assist you in correcting a problem for the support receiver
while not hurting the support payor.
Several Oregon 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.
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