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Child Support Arrears Effect Income Tax Deductions

Child Support Arrears Effect Income Tax Deductions

Although child support arrears are do not result in a prohibition of a parent enjoying visitation or parenting time with their child, child support arrears can result in suspension of a parent’s right to claim a child as a child support deduction. In Zeitlin v. Zeitlin, the New Jersey Family part refused to modify the property settlement agreement to the extent that each parent was entitled to claim one child as an exemption on their income tax returns. However, on appeal, the N.J. Appellate Division held that a parent’s failure to pay child support breached their duty of good faith and fair dealing and could result in the suspension of that parent’s right to claim a child as an income tax deduction. Based on the notion of good faith and fair dealing, the court suspended the father’s right, under the property settlement agreement, to claim one of the children as a tax exemption. The decisions made in divorce, by either the parties or the court in the event of trial, are long lasting and have significant consequences to both parties’ and their children. If you are considering divorce or seeking a modification of your present child support, it is critical that you discuss your situation with an experienced divorce attorney before taking action. For more information about child support, custody, divorce, parenting time, visitation, alimony or other family law matters in NJ visit DarlingFirm.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

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