Whether you are paying child support or receiving it every month, it has a major impact on your budget. Parents in Cherry Hill, New Jersey, who receive or pay child support often struggle with the best way to figure this court-mandated payment into their monthly financial plans. Educating yourself on how to handle this added expense or income is imperative.
Budgeting if you receive child support
If you are the custodial parent of your child and receive a monthly child support payment, your ability to responsibly manage these funds is vital. You should have a plan in place for every dollar that you receive from your ex.
First of all, make a budget that does not include the money you will be receiving from child support payments. Knowing your financial position without this added income allows you to better plan on how to spend the money intended for your child. After you have that budget figured out, you can create a plan as to how much you will need to spend every month on your child and what you can tuck away for future, unplanned expenses.
Budgeting if you pay child support
This aspect of child support budgeting can be more difficult because failure to pay it could carry serious legal consequences. You should not even count the money that you will be paying in child support as income. When you create your new budget, subtract what you owe in child support first, and build your budget from there.
There are times when child support is open to modification whether you owe the money every month or receive it. You should consult with an attorney who can help you file the proper motions to modify the payment in your state’s family law system.