In A Divorce: When Does One Thousand Dollars Not Equal One Thousand Dollars

Assume that I owe you $1,000.00 (One Thousand Dollars), I could pay you back as follows:

  1. One Thousand Dollars in one lump sum in one month’s time.
  2. Two payments of Five Hundred Dollars.
  3. Five payments of Two Hundred Dollars.
  4. One Thousand Dollars in one lump sum, but I’ll pay it five years from now.
  5. One Thousand payments of One Dollar.

Most people would recognize that the fourth and fifth options are not fair and although each one adds up to One Thousand Dollars, because of inflation and the time-value of money, it is not really One Thousand Dollars.

This illustrates the “time-value” of money. In other words, money today is worth more than money tomorrow. As time goes on, inflation reduces the value of your money. So, even if I pay you $1,000 in five years (as an example), its real worth would be something like $950 – $990, depending on inflation and other factors.

Therefore, in a divorce, when you are making or accepting payments, you have to take into account the time-value of money. Typically, if you owe money, it is better to pay it over time (this assumes that there is no interest payments). Alternatively, if you have to pay money and have to pay it in one-lump sum, you can argue that because your money today is worth more than money in the future, that you deserve a discount in what you pay.

For example, if you have to pay spousal maintenance (alimony) and your payments come out to $1,000 per month for 5 years, for a total of $60,000, then you might want to agree to pay a lump-sum of $55,000. Your argument would be that a lump sum payment of $55,000 is worth more than 5 years of payments, with each payment of $1,000.

Pre-payment of amounts owed can work in many situations, not just for a payment of spousal maintenance. However, typically, you cannot pre-pay your child support obligation.

If you are considering getting divorced or are seeking a new divorce attorney on Long Island, then David Badanes and the Badanes Law Office can help you.  David Badanes can explain how the time-value of money can help your situation.

If you need an attorney to represent you in your divorce, call David Badanes, Esq. and the Badanes Law Office, P.C. today at 631-239-1702 or email me at david@dbnylaw.com. The Badanes Law Office has offices in Northport and Uniondale.

Please like us on Facebook to get important legal news, tips and articles: www.facebook.com/BadanesLawOffice.

Divorce and Rising Gas Prices

Every day, it seems that gas prices are getting higher and higher.  Even, if gas prices go down a bit, it is likely that in the future, the price you pay for gas is going to be more than the price you paid more than a year ago.

How does inflation or the rising price of gas affect your divorce?  For example: What if you have been divorced for several years, can you request additional child support or additional spousal maintenance (alimony) due to the increase in the cost of living?  What if you are the parent responsible for transportation expenses, are you able to get a modification of your child support obligation?

Whether or not inflation will be a basis for obtaining a change in child support depends on a few factors.  Typically, you have to show that the cost of living has gone up by more than 10% (since the time your order went into effect or the last time it was increased).  If your child support order is through the Support Collection Unit, then they will typically automatically compute whether or not there has been more than a 10% increase in the cost of living.  When the cost of living has increased by more than 10% (cumulatively), the Support Collection Unit, will also automatically increase the amount of child support that you either have to pay or that you receive.

However, if your child support order is not through the Support Collection Unit, then it is up to you to demonstrate to the Court that the cost of living has increased by more than 10%.  You would have to file a petition to Family Court to get an increase in child support.

Since gas prices are just one component of inflation (or the cost of living), increased gas prices, by themselves, may not be sufficient for obtaining a modification of child support, spousal maintenance or for transportation expenses.

Another basis to obtain a change in your child support is to show that the child support order is more than three years old.  Here, you might be able to get an increase (or decrease) in child support, simply because the last change is more than three years old.  If your child support order is more than three years old, then even if the cost of living has increased less than 10%, then you may be able to get an increase in child support.

In summary, no one likes paying more for gas, however, the increase in the price of gas may not be enough to qualify for a change in your child support or spousal maintenance.

David Badanes and the Badanes Law Office provides real world advice and can help you in your divorce.  If you need an experienced divorce attorney, then call David Badanes and the Badanes Law Office at 631-239-1702, email at david@dbnylaw.com or visit our web site at www.dbnylaw.com.

The Badanes Law Office main office is in Northport, Suffolk County and he has a satellite office in Uniondale, Nassau County.

Please like us on Facebook to get important legal news, tips and articles: www.facebook.com/BadanesLawOffice.

I Want a Divorce but My Spouse Doesn’t

You may want a Divorce, but your spouse does not. What can you do? New York State is a “No Fault” Divorce State, so, you can get a divorce with or without your spouse cooperating or “wanting” the divorce.

The first step in starting the divorce process is to file a Summons and Complaint (or in some instances, you can file a “Summons With Notice” and then subsequently file the Complaint). Then the Summons and Complaint must be properly served upon your spouse. The key is here is that you must have “proper service”. This means you cannot just give the Summons and Complaint to your spouse. It is highly recommended that you hire an experienced process server to serve the Summons and Complaint upon your spouse. If you hire an attorney, your attorney will most likely handle the entire process of filing the Summons and Complaint and also making sure it is properly served upon your spouse.

What if my spouse states that he/she will not respond to the Summons and Complaint?

Technically, your spouse does not have to respond to the Summons and Complaint. However, if your spouse does not respond to the Summons and Complaint, then you can still get divorced. You would request that the Court give you a default divorce. Your attorney will know how to make sure that you make the request for a default divorce correctly.

In the process of granting a default divorce, the Court will schedule a special court hearing called an “Inquest”. At the Inquest, your attorney will present evidence that your spouse was properly served and will also present the basic facts of your divorce. If applicable, you will be able to make a request for child custody, child support, alimony, distribution of assets and the payment of debts as well of all the other issues of your divorce. In general, terms, since your spouse has not responded to the Summons and Complaint, the Court will grant most of your requests.

The bottom line is that you can get a divorce regardless of whether or not your spouse also wants the divorce.

If you are contemplating getting divorced and believe that your spouse does not want the divorce, then you need an experienced attorney who can guide you through the process. , David Badanes and the Badanes Law Office, P.C. have the experience to get you through the divorce process, even if your spouse doesn’t want the divorce.

What is the Difference Between Alimony (Spousal Maintenance) Payments and Child Support?

David P. Badanes, Esq.

Alimony There is a significant difference between alimony (spousal maintenance) payments and child support payments. The amount of child support is typically determined by a formula and is based on your income. For most parents, the amount of child support that you have to pay is not significantly altered by the amount of income that your ex-spouse earns.

In contrast, the amount of alimony you may have to pay is not determined by a formula. Furthermore, the amount of alimony you pay will absolutely depend on how much income your ex-spouse earns (or could earn).

In New York, child support typically ends when the youngest child turns 21 years of age. In theory, you could pay alimony until your ex-spouse dies, although, the length of time you have to pay alimony is based on many factors.

Child support payments, whether paid or received, is not considered income. Accordingly, there are no tax consequences to the payment or the receipt of child support payments.

Alimony payments are considered income and must be declared on your income taxes. If you make alimony payments, you can deduct the amount you pay from your income.

If you are getting divorced and need more information about child support and alimony (spousal maintenance) and what your legal rights are, call David Badanes and the Badanes Law Office. We have helped numerous individuals with their divorce. Call 631-239-1702, or contact us today. The Badanes Law Office has two offices in Long Island: Northport and Garden City.

If you like our articles, you will find our eBook helpful too:

Download “7 Things You Should Know When Going Through a Divorce in New York” here: