Divorce and Stimulus Checks: Who Receives Them?

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By Divorce & Finance

Divorce and stimulus checksDivorce and stimulus checks sometimes confuse people. How do you split a stimulus check after divorce? A stimulus check might be treated as a marital asset for the purpose of divorce, so all relevant laws may apply.

This article provides you with the correct understanding of the relationship between divorce and stimulus checks and who receives them after divorce.

How Does Divorce Affect My Stimulus Check?

A stimulus payment affects divorce as it is deemed a marital asset if you both are still married and or in the process of divorcing. If the check is paid to a joint bank account, you can both agree on how to spend it: pay shared bills, split it, etc.

However, because money is a shared asset, neither spouse should touch it without informing the other. The stimulus check is also divided equally just like any other marital asset.

– Stimulus Checks Explained

Stimulus checks are direct government payments made to individuals during times of economic difficulty. People can choose between receiving a paper check and transferring their stimulus payment directly into their bank accounts. This was much prevalent during the Covid times.

They are intended to increase consumer confidence and spending by going to taxpayers, who will then use them to stimulate revenue at merchants and manufacturers.

Do You Get a Stimulus Check After Divorce?

You may or may not get a stimulus check after divorce. The check is given based on a divorce decree. If the divorce is finalized, each ex-spouse may receive a stimulus check depending on their income threshold. If both ex-spouses qualify, they should both receive and keep their funds.

– Stimulus Payments According to the Divorce Decree

Your divorce decree may address the division of tax refunds for previously filed joint tax returns. This might offer some direction to both parties regarding how to divide these funds and potential future stimulus payments.

It’s crucial to remember that the stimulus payment may not be worth another legal battle if the parties can reach an agreement and you are already divorced. A knowledgeable divorce lawyer can advise you in the right direction and possibly identify the most effective method of recovering these funds.

How Is the Stimulus Check for Children Handled After Divorce?

The stimulus check for children is handled after divorce depending on some considerations like head of the family, finances, etc., and it is also based on the divorce decree. If the children are listed as dependents and the divorce is final, it can be complicated to decide who receives it.

Following are the considerations and situations which decide who will receive the stimulus check for children:

  • The divorce decree ascertains it. The $500 stimulus increase is directly related to the Child Tax Credit you claimed when you submitted your taxes. Examine your Divorce Decree to establish who is to claim for each child.
  • Whether or not the divorce is final depends on several factors. If married, the head of the household receives the stimulus for children.
  • It becomes complicated if you filed jointly with your partner and listed your kids as dependents. Please think about asking a family law attorney for assistance.
  • It’s possible that both ex-spouses have claimed the child as a dependent if the former couple has divorced. However, who gets the stimulus check in a divorce can be a complicated issue, so legal counsel in this area is recommended.

– How to Use the Stimulus Check for Children

In principle, the parent who claims each child would also receive the associated stimulus money. On the other hand, for many people, this is a good opportunity to demonstrate your support for your co-parent by splitting the child component of your Stimulus Check evenly. Others think the money should go to the spouse who needs it the most.

Divorced parents are under a lot of stress emotionally, physically and financially. Sharing your Stimulus Check could demonstrate kindness to your co-parent and help you both prioritize your children while weathering this crisis.

Instead of causing stress and conflict, this is the time to come together. Considering the final destination of your Stimulus Check and keeping your co-parent in mind during this time of need is your chance to collaborate peacefully with your former spouse.

What to Do if Your Spouse Takes Your Stimulus Check?How does divorce affect my stimulus check

If your spouse takes your stimulus check, you could file for a penalty. One person’s money is also the money of the other, and vice versa. It is not commonly considered theft when one spouse steals joint funds because you cannot steal from yourself.

Then how could you recover the money if my spouse stole my stimulus payment? Please read further to know

– Ways to Recover the Stimulus Check

Couples in some states cannot sue each other for anything other than divorce. Other states, however, may allow spouses to sue each other and grant the appropriate penalty for stealing stimulus check. You should check with your local court clerk or a lawyer to determine if starting a small claims lawsuit filing for stimulus money is an option for you.

If small a court is not an option, you can file for divorce and request that the stimulus payment is returned to you by the divorce judge. Divorce can be complicated, so you should counsel with an attorney before determining whether or not to file for divorce.

If you file as being married, you can claim your stimulus payment as a married individual when you file your tax return. Make certain to notify the IRS that you did not receive your stimulus payment. If the IRS’s records reveal that payments were already issued under your SSN, you will need to explain and prove that you did not receive the stimulus funds.

The IRS will most likely give you a time limit of 60 days to respond to their denial of the credit. You should respond to the IRS within that time frame, and you might want to consult with a tax professional about how to respond to the IRS via certified mail.

Does Divorce Affect How Much Families Will Receive in Their Stimulus Checks for Dependents?

Divorce can affect how much families will receive in their stimulus checks for dependents: below certain thresholds — $75,000 for individuals or divorced couples, $112,500 for heads of households, and $150,000 for married couples filing jointly — you will receive $1,400 as a direct deposit or mailed check.

There is also a $1,400 surcharge for each dependent claimed on the most recent tax returns.

– How Stimulus Money for Dependents Is Divided

Whether you received your new stimulus check or are still waiting for your third payment, the rules providing you with $1,400 for each dependent are critical to ensuring you receive the correct amount of money. The rules for dependents for stimulus checks are vastly different from those for the child tax credit, which is worth even more – up to $3,600 per qualified dependent.

In some circumstances, even non-filers (such as SSI and SSDI recipients and veterans) must file 2020 taxes to receive their full dependent total i.e. stimulus check 2022. In other cases, you may be required to initiate a payment trace with the IRS.

How Is Your Custody and Child Support Situation Affected by Stimulus Check Payments After Divorce?

Your custody and child support situation are affected by stimulus check payments after divorce depending on some factors. These are the child custody situation and the child support situation. If you were the head of the family when filing the tax return, you will receive the check.

While these stimulus payments appeared to have the potential to give a significant benefit, the ambiguity about who would receive what may have taken the gloss off the help.

– Child Custody Situation

If you filed as head of family or household on your most recent tax return, these payments were most likely deposited directly into your bank account. You are responsible for ensuring that the payments are applied as you wish. These may remain with you or be sent to your ex-spouse, depending on your existing custody situation or on who the custodial parent is.

– Child Support Situation

Despite the coronavirus epidemic, your child support position will remain the same. You must pay child support as directed by the court, and the government is required to confiscate the stimulus money received by you if you owe child support. If your spouse receives the stimulus money before you, ensure that they apply it directly to any arrearage.

If you are unsure about how much money you are qualified to receive or if you currently owe support payments, it is essential that you consult with an experienced lawyer before making any choices.

What Are the Requirements To Get Stimulus Checks After Divorce

The requirements to get stimulus checks after divorce are broad. For example, U.S. citizens and residents are eligible as long as they are not reported as dependents on the tax returns of others. Individuals may be subject to income thresholds based on their tax filing status and divorce status.

If a single filer’s adjusted gross income (AGI) is too high, they will not qualify. These checks have been used to stimulate the economy in the United States on various occasions. The amount varies depending on the taxpayer’s filing status.

In general, joint taxpayers receive twice as much as single taxpayers. In some cases, those who had unpaid back taxes saw their stimulus checks automatically applied to their outstanding balance.

FAQ

– Can You Calculate How Much Stimulus Money You Can Get?

You can calculate how much stimulus money you can get. The stimulus check amount starts from $1,200 for adults, $2,400 for married couples filing together, and an additional $500 for each eligible child (generally, under the age of 17 at the end of the qualifying tax year).

A person is completely phased out when their income reaches $99,000 for single filers and $198,000 for joint filers.

– Are Payments From Stimulus Checks Deposited Into a Joint Bank Account?

The payments from stimulus checks are deposited in a joint bank account and in the same manner as tax refunds. If in your 2019 tax refund you and your spouse filed together on your most recent tax return but have since separated, the check is deposited to the same address.

You may also wonder “can a spouse cash a joint stimulus check“. The answer is “yes”, but with the signature of the other spouse.What to do if your spouse takes your stimulus check

Conclusion

If your divorce is not yet official, any stimulus check money received by you or your spouse may be deemed marital property and will be shared appropriately. Your stimulus money will be based on your tax returns, most likely from 2018 and 2019 because many people might have not paid their 2020 taxes.

  • The money that enters a marriage is considered joint money. This means that both spouses can access as much of the joint funds as they choose.
  • If your return was not filed jointly, you and your spouse should seek counsel on how to handle the stimulus check money, which may be considered distinct property.
  • If you file as being married, you can claim your stimulus payment as a married individual when you file your tax return.
  • Withholding another person’s portion of the stimulus payment may result in legal implications.

This article provides you with a detailed analysis of the effects that stimulus money may have during or after divorce when any children are involved. This will help you make any legally viable option related to stimulus checks during or before your divorce.

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