The Connecticut version of Divorce Planner calculates Connecticut
guideline child support for sole and split custody and prints the Connecticut child
support Worksheet. A Connecticut Regional version will also calculate state tax in
adjacent states including the New York nonresident income tax. 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 Connecticut 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. In Connecticut, child support is based on the net after-tax
income of the support payer. After-Tax cash reports are different depending on how you want child support to be calculated.
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 highlighted
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). The
amount of alimony needed to allow the receiver to meet a budget need is
automatically calculated. 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.
On-screen 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 will impact many
divorces in that the Alternative Minimum Tax (AMT) will 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.
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 Divorce Planner 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 Divorce Planner 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 Divorce Planner software has been showing family lawyers,
mediators and financial professionals how to maximize cash in a divorce
for more than 15 years. Simply stated, the FinPlan product family has a proven track record and several
thousand satisfied customers all across the country.
Divorce Planner will transfer data on income and taxes to FinPlan
Assets+ software which prepares CT specific financial affidavits (CT
required format).
Several Connecticut 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.