Marital Settlement Agreement and Parenting Plans in Albuquerque, New Mexico

Anyone that has been through a divorce can testify that the terms Marital Settlement Agreement and Parenting Plan are thrown around during the divorce process like the words hope and progress falling from a politician’s lips during election time.

At their core, Marital Settlement Agreements (MSA) and Parenting Plans are contracts that one finds in the context of a divorce.

MARTIAL SETTLEMENT AGREEMENT

On one hand there are MSA’s. These documents determine how assets and liabilities that were accumulated during a marriage will be distributed between the parties. Generally speaking, any assets and debts that are accumulated during the course of the marriage are deemed “community property” and will be split evenly between the parties.

Credit card debt, medical debt, student loan debt, home debt – and so on – all fall under the umbrella of relevant debts that must be distributed within the MSA, before a New Mexico court will grant the requested divorce.

Likewise, assets and property such as equity in the marital residence, ira, 401k, vehicles, home furnishings and so forth are divided by the MSA.

PARENTING PLAN

On the other hand one can find Parenting Plans. These documents outline the custody and time-sharing arrangement for any children from the marriage. Marriages with no children do not require a parenting plan, but still require an MSA. The Parenting Plan outlines the exact time that the child will spend with each parent throughout the year. The Parenting Plan also delineates each parent’s rights and responsibilities, establishes child support, and determines which parent may claim the child as a dependent for tax purposes. In this respect the IRS and Albuquerque, New Mexico courts tend to disagree on the issue of child tax credits. IRS Publication 501 states that an individual may claim a child as a dependent on his or her tax return if the child resides with that individual “for more than half the year. . . . “

In contrast to IRS Publication 501, New Mexico courts have equitable powers and therefore tend to grant parents’ the right to alternate the years that each individual parent may claim the child as a dependent – especially in situations where one parent is providing child support for the child, and is current on the requisite child support for the tax year at issue.

As one can see, there is a degree of tension and disagreement between the IRS and New Mexico courts regarding child tax credits. Nevertheless, New Mexico courts ultimately have the last laugh regarding tax credits, and the court’s final ruling on the matter overrides any rules or regulations established by the IRS.

HOW TO COMPLETE A PARENTING PLAN AND MARITAL SETTLEMENT AGREEMENT IN NEW MEXICO

At this point in our journey it’s important to discuss the process involved with completing the terms within the Parenting Plan and MSA.

There are two paths that one can travel in order to finalize the MSA and Parenting Plan, reaching the finish line in the form of a Final Decree of Dissolution of Marriage.

On the first path one travels on smooth ground, cruising towards the checkered flag, also known as the Final Decree of Dissolution of Marriage. This path includes situations where the parties amicably agree on all of the terms within the MSA and Parenting Plan. Once the MSA and Parenting Plan are complete, the parties to the marriage can file both documents, in tandem with the Final Decree. The assigned judge reviews the documents – usually within a week – and the divorce process is complete once all of the necessary ingredients are filed with the court.

The second path is far more cumbersome and comes complete with bumps, pot holes and orange barrels along the way. This path involves situations where the parties disagree on the elements that are necessary to complete the MSA and Parenting Plan. On this path the parties will intersect with the court, first requiring a pit stop in the form of a settlement facilitation where the parties meet with a mediator with the goal of resolving any lingering issues within the MSA and Parenting Plan. If the parties are unable to resolve the remaining issues at settlement facilitation, then the final stop is a trial on the merits, where the parties place the issues into the judge’s hands, providing the judge with complete power to determine the end result – for good or ill.

(505) SANCHEZ IS HERE TO ANSWER ALL OF YOUR QUESTIONS ABOUT MARITAL SETTLEMENT AGREEMENT AND PARENTING PLANS IN ALBUQUERQUE, NEW MEXICO

Do you still have questions regarding your specific case?  Marital settlement agreement and parenting plans in Albuquerque, New Mexico often require the experience hand and knowledge that comes with years of courtroom practice.  Matthew Legan Sanchez has the experience needed to handle your unique case.  Sanchez can be reached by calling (505) SANCHEZ.