Memo-PPanther.pdf

Memo
 to
 file
 

To:
 File
 

From:
 Paul
 Panther
 

Client:
 Ben
 

Subject:
 Divorce
 decree
 
 

Facts
 

“Ben
 and
 Jennifer
 were
 divorced
 two
 years
 ago
 and
 the
 decree
 stated
 that
 Ben
 was
 to
 make
 
monthly
 payments
 to
 Jen.
 The
 court
 designated
 $500
 a
 month
 as
 alimony
 and
 $600
 per
 month
 
as
 child
 support.
 Ben
 was
 unemployed
 for
 a
 quarter
 of
 the
 year
 and
 paid
 Jen
 $
 9,900
 during
 the
 
time
 he
 was
 employed.
 He
 said
 $5,400
 was
 for
 child
 support
 and
 $4,500
 was
 alimony.
 In
 
addition,
 Ben
 transferred
 home
 theatre
 equipment
 to
 Jen
 with
 a
 FMW
 of
 $
 3,300
 and
 a
 basis
 of
 
$6,000
 in
 exchange
 for
 her
 promise
 not
 to
 pursue
 any
 claim
 against
 him
 for
 unpaid
 child
 
support
 and
 alimony.
 During
 his
 three
 months
 of
 unemployment
 Ben
 collected
 $3,000
 of
 
unemployment
 benefits.
 He
 earned
 $72,000
 in
 salary
 for
 the
 nine-­‐month
 period
 of
 
employment.”
 

Issue
 and
 Conclusion
 

Can
 Jennifer
 accept
 the
 home
 theatre
 equipment
 as
 payment
 for
 the
 unpaid
 child
 support
 and
 
alimony?
 

Yes,
 if
 she
 agrees
 with
 the
 method
 of
 payment
 then
 it
 is
 possible.
 

Analysis
 of
 conclusion
 

A
 former
 spouse
 can
 agree
 to
 receive
 property
 as
 a
 form
 of
 alimony
 payment
 over
 a
 written
 
agreement
 of
 promise.
 If
 Jennifer
 is
 comfortable
 with
 the
 offer
 and
 does
 not
 plan
 to
 pursue
 any
 
claim,
 she
 can
 use
 the
 written
 agreement
 as
 proof
 to
 the
 IRS
 the
 method
 of
 payment.
 

Issue
 and
 conclusion
 

What
 if
 Jennifer
 were
 to
 disagree
 with
 that
 offer
 and
 decided
 that
 Ben
 made
 more
 than
 enough
 
money
 over
 the
 year
 to
 give
 her
 the
 remaining
 unpaid
 child
 support
 and
 alimony.
 Would
 it
 be
 
possible
 to
 pursue
 any
 claim
 against
 him?
 

Yes,
 because
 his
 income
 is
 above
 the
 threshold
 and
 being
 unemployed
 for
 3
 months
 does
 not
 
give
 him
 the
 right
 to
 not
 pay.
 

Analysis
 of
 conclusion
 
 

Alimony
 is
 calculated
 based
 on
 the
 spouse
 ability
 to
 pay
 and
 the
 need
 of
 the
 depending
 spouse.
 
Since
 Ben
 made
 $72,000
 in
 salary
 for
 that
 year,
 he
 therefore
 qualify
 to
 pay
 the
 unpaid
 amount.
 

Issue
 and
 conclusion
 

Can
 Ben
 decided
 what
 portion
 of
 the
 money
 is
 child
 support
 and
 what
 is
 alimony?
 

No
 

Analysis
 of
 conclusion
 

If
 payment
 are
 required
 for
 both
 alimony
 and
 child
 support
 by
 the
 court
 decree,
 then
 payments
 
are
 first
 applied
 to
 child
 support
 and
 the
 remaining
 is
 alimony.
 The
 law
 says
 that
 when
 a
 minor
 
child
 is
 involve
 in
 a
 divorce,
 the
 need
 of
 the
 child
 come
 first
 over
 all
 else.
 Therefore
 Ben
 did
 not
 
have
 the
 authority
 to
 decide
 what
 portion
 of
 the
 money
 goes
 to
 what.