Tuesday, January 14, 2014

Settlement Idea of Interest

I have been in court most of the day.  While there, an interesting settlement tool came to light.  Lots of times the parent who is allowed to claim the income tax deduction on a minor child ends up owing the other parent money for attorney's fees, unpaid debts, or some other monetary value. With the economy like it is, this can make it hard to come up with funds.  One idea is to allow the other party to claim the minor child as a deduction for one year to pay the debt and allow the other party to either keep the overage as interest or agree to return the overage amount to the opposing party.  It is a good idea to have your client to consult with an accountant on this, but this can be very helpful in fixing some money issue between parties. 

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