making financial decisions when divorce occurs - college of

MakingFinancial Decisions

When Divorce Occurs

Published jointly by the University of Idaho Cooperative Extension Systemand the Idaho Women’s Commission

An Idaho Guide

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MakingFinancial Decisions

When Divorce Occurs

IdahoGuide

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Elizabeth Brandt, Linda Kirk Fox, and Kathleen Hardcastle

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Reprinted June 1992; revised 11/97

Making Financial Decisions When Divorce Occurs: An Idaho Guideis the product of the work of numerous individuals throughout Idaho.The authors acknowledge financial assistance from the following forprinting and distribution costs:

• University of Idaho Cooperative Extension System• Idaho Women’s Commission

IMPORTANTWhat is considered property to be divided at divorce, and the

guidelines for child and spousal support, differ from state to state.This publication is based on Idaho law in effect as of July 1997.However, the section entitled “Child Support” on page 11,and Table 3, “Basic monthly child support guidelines sched-ule,” on page 19, are subject to revision. Contact the DistrictCourt (look under County Government in the telephone directoryyellow pages) or request copies of the Child Support Guidelinesfrom Administrative Offices of the Court, 451 W. State Street,Boise, Idaho 83720 (208) 344-2246.

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Table of ContentsDisclaimer........................................................................................ iiIntroduction...................................................................................... 1

Do You Need a Lawyer? ............................................................. 2Hiring a Lawyer........................................................................... 2Mediation..................................................................................... 2

Property and Debts .......................................................................... 3Community Property — Separate Property................................. 3Fair Market Value — Replacement Value .................................. 3Division of Property .................................................................... 3Division of Debts......................................................................... 4If You Own a Home .................................................................... 4

Market Value or Estimated Sales Price ................................ 5Proceeds from Sale ............................................................... 5Selling at Some Future Date ................................................. 5Income Tax Consequences ................................................... 6The Cost of Staying in the Family Home ............................. 6

Estimated Costs of Rental Housing............................................. 6Household Appliances and Furnishings ...................................... 6Automobiles and Other Vehicles ................................................ 7Bank Accounts, Investments, Stocks, and Bonds ....................... 7Life Insurance.............................................................................. 8

Who is the Insured? .............................................................. 8Who Owns the Policy? ......................................................... 8Who is the Beneficiary?........................................................ 8What is the Face Value? ....................................................... 8Is There a Cash Value? ......................................................... 8Are There Any Loans Against the Cash Value?................... 8

Life Insurance as Property........................................................... 8Life Insurance and Child or Spousal Support ............................. 9Retirement Accounts and Plans................................................... 9IRA’s and Keogh Plans ............................................................... 10Other Employee Plans ................................................................. 10Pension Plans............................................................................... 10Debts............................................................................................ 11Proposed Property Division......................................................... 11

Child Support................................................................................... 11The Financial Needs of the Child................................................ 12Child Support Guidelines ............................................................ 12Income Determination Under the Guidelines.............................. 12

Gross Income ........................................................................ 12Gross Potential Income ......................................................... 14

Computations............................................................................... 14When Guidelines Apply........................................................ 14

Other Adjustments....................................................................... 15Shared Physical Custody ...................................................... 15Extended Visits ..................................................................... 16Split Physical Custody .......................................................... 16Future Adjustments............................................................... 16Medical and Dental Expenses............................................... 16Post-high School Education.................................................. 16

Timing and Method of Payments ................................................ 17Budgeting and Recordkeeping .................................................... 17

Spousal Support ............................................................................... 20Social Security............................................................................. 20

If You Are Married ............................................................... 20If You Divorce ...................................................................... 21

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Table of Contents (cont’d)Health Insurance.......................................................................... 21Medicaid ...................................................................................... 21Estimated Income/Expense Statement ........................................ 22

Other Financial Considerations ....................................................... 22Credit ........................................................................................... 22

Joint Accounts During Marriage........................................... 22After Divorce ........................................................................ 22

Credit Payment Priorities ............................................................ 23Creditors Options .................................................................. 24Review Your Credit Report .................................................. 24Should You Consider Loan Consolidation? ......................... 25

Who to Talk to About Your Financial Situation ......................... 25If You Have No Credit Rating .............................................. 25

Child Care Assistance ................................................................. 26Food Stamps ................................................................................ 26Income Tax.................................................................................. 26

How Divorce Affects Taxes ................................................. 26Before Divorce...................................................................... 27After Divorce ........................................................................ 27

Earned Income Tax Credit .......................................................... 28How to Receive EIC ............................................................. 28How to Receive the EIC in Your Paycheck.......................... 28

Bankruptcy .................................................................................. 29Wills and Estate Planning............................................................ 29

A New Financial Life ...................................................................... 29Name Change........................................................................ 30

Prenuptial Agreements ................................................................ 30Glossary ........................................................................................... 42Additional Resources....................................................................... 44Authors, Acknowledgments ............................................................ 45

IllustrationsTables

1. Estimated annual family expenditures on a child(overall U.S. from birth to age 18)........................................ 13

2. Child support obligations based on both parents’ grossincome where only one parent has custody .......................... 15

3. Basic monthly child support guidelines schedule................. 19

Figure1. Affidavit verifying income ................................................... 18

Worksheets 1. Estimated Proceeds from Sale of House............................... 31 2. Estimated Cost of Staying in the Family Home ................... 32 3. Estimated Cost of Renting .................................................... 32 4. Summary of Life Insurance Policies..................................... 33 5. Summary of Debts ................................................................ 34 6. Summary of Proposed Property Division ............................. 35

Completed Sample Worksheet 6........................................... 36 7. Monthly Financial Needs of Children .................................. 37 8. Child Support Obligations .................................................... 38 9. Child Support Obligation, Shared Physical Custody............ 3910. Summary of Income of Husband and Wife .......................... 4011. Projected Income-Expense Statement .................................. 41

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Making Financial DecisionsWhen Divorce Occurs:

An Idaho Guide

The financial decisions you make at divorce have long-term economic impacts onyou, your spouse, and your children. One decision affects another, such as how yourproperty is valued and divided, how debts are paid, who provides child support, and(in some cases) whether one of you provides support payments to your spouse.

The decisions may be made by you and your spouse; by you and your spouse withassistance from a mediator, counselor, or the attorneys of husband and wife; or, ina contested divorce, by the judge.

Economic information and an understanding of your financial situation arecritical as you make these decisions. It takes time and effort to become familiar withyour family financial situation. The purpose of this publication and the worksheetsis to help you analyze your financial situation.

The goal of the divorce proceedings is to arrive at a settlement that is “just” basedon the facts and circumstances of each case. What is just depends on the situation.In some situations, dividing assets and debts equally would be just; in others, anequal division would not be just. What is just in a short-term marriage will differ fromwhat is just in a long-term marriage.

In some divorces, decisions you make can be carried out immediately. Forexample, if the only property to be divided is the bank account, it can be divided atthe time of the settlement. Other divorces may involve promises of things you willdo in the future: sell property, pay debts, or make payments to your spouse.

These promises need to be in writing. If they are not, enforcing the provisions maybe impossible. The written agreement is called a “property agreement,” and itbecomes a part of the divorce decree.

Do not sign a property settlement agreement you do not understand or one thatyou feel contains unfair terms. Consult your own attorney — not your spouse’sattorney — before you sign.

The period before divorce is difficult. You are expected to make rational decisionsat a time of emotional turmoil and in a setting that does not lend itself to rationaldiscussion. Most couples experience increased pressures due to separation andpending divorce.

Do not let emotions result in missed payments, lapsed insurance, or unnecessaryadditional financial pressures. Develop a temporary income and expense plan tokeep up to date with financial obligations and, if possible, avoid incurring additionaldebt. You and your spouse should keep records of all expenses you’ve paid. If youhave no money for current living expenses or if you fear your spouse will sell ordispose of assets, get legal help.

Many of the legal terms in this bulletin are italicized bold in the text anddefined in a glossary on pages 42-43. For Worksheets, see pages 31-41.

The goal of thedivorce proceedingsis to arrive at asettlement that is“just” based on thefacts and circum-stances of each case.What is just dependson the situation.

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Introduction

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Do You Need a Lawyer?A simple divorce can be obtained without the assistance of a lawyer. For example,

when you and your spouse are on good terms, do not have children, do not own realestate or other substantial items of property, and do not have extensive debts, a “do-it-yourself divorce” may be appropriate. However, if any of the above factors applyto you, the assistance of a lawyer will best protect your interests in the divorceprocess.

This guide will help you whether you are represented by a lawyer or not. If youare not represented, the guide will help you “cover all the bases.” If you arerepresented, it will enable you to be an informed consumer of legal services and willhelp ensure that you provide your attorney with accurate and complete informationon all aspects of your divorce.

Hiring a lawyerTo find a lawyer to hire, you have several options. You may want to ask friends

and acquaintances. You may look for lawyers who advertise in the yellow pages ofthe phone book. You may also call the lawyer referral service of the Idaho State Bar,phone (208) 334-4500.

Idaho Legal Aid Services, Inc., handles a limited number of divorce cases forpeople who have income below the poverty income guidelines. These cases mustinvolve either spousal or child abuse. Call your nearest Idaho Legal Aid office. TheIdaho State Bar also has a Volunteer Lawyer Program, phone (208)334-4510 whichassists individuals who cannot afford to pay for legal advice.

MediationMediation is a nonadversarial procedure where you and your spouse jointly hire

a neutral, third-part facilitator (often a specially trained attorney) to help you workout a fair and equitable divorce agreement together. Included in this agreement willbe the children’s living arrangement, visitation, the home, and other assets and debts.

When the mediator completes the draft divorce arrangements, both you and yourspouse should review it with your individual attorneys before agreeing to anything.Mediation often is relatively quick and less expensive, but it’s not for everyone. Thealternative is litigation.

In some instances, the court may refer both parties to mediation to resolve custodyand visitation disputes. In many counties divorcing parents are automaticallyreferred to mediation. In this case the fee is split between the two parties. Trainedmediators charge by the hour for six to eight one- or two-hour sessions. To locate aqualified mediator in Idaho, contact the Idaho Mediation Association, phone(208)389-9211.

The period beforedivorce is difficult.You are expected tomake rationaldecisions at a time ofemotional turmoiland in a setting thatdoes not lend itself torational discussion.

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Property and DebtsIf you are considering divorce, you need to determine how to divide community

property and who will pay debts incurred during the marriage. Before doing this, youneed a list of the property owned, its estimated value, and a list of debts. This listshould reflect which property is community property.

Property is both real estate and personal property. Real estate is land, buildings,and crops growing on the land. Your home is considered real estate. Personalproperty is all property that is not real estate — automobiles, furniture, appliances,bank accounts, stocks, bonds, life insurance, IRA’s, pensions, etc.

Community Property — Separate PropertyCommunity property is any property acquired by you or your spouse during the

marriage with the following exceptions. Property is separate if it was acquired byassets you or your spouse owned before you were married. Also property acquiredby you or your spouse as a result of a gift to one of you, or through inheritance, isseparate property. A gift to both of you, however, is generally community property.Your earnings during marriage and things purchased with those earnings are com-munity property. Furthermore, in Idaho, the rents and profits of the separate propertyowned by you or your spouse are community property. For example, if you ownedstock before marriage, the dividends paid on the stock during marriage would becommunity property; but the increase in value of that stock would not be communityproperty. Interest is another example of rents and profits of separate property thatwould be community property.

Fair Market Value — Replacement ValueEstimate the dollar value of your property. Before you start estimating value, it is

important to differentiate between fair market value and replacement value.Fair market value is the price at which a willing buyer will buy an item and a

willing seller will sell an item. “How much could I get if I sold my car?”Replacement value is the cost of replacing the property with similar property. “If

I don’t get the car, how much will it cost me to buy one to get back and forth to work?”As you and your spouse discuss property values, whichever one of you plans to

keep the property may think in terms of fair market value, while the other (who willbe replacing the property) may think in terms of replacement value. For example, ifyou keep the furniture, you might think, “This stuff is 10 years old and almostworthless; I couldn’t even sell it.” That’s fair market value. Your spouse might think,“I have no furniture, and it will cost a lot to get my apartment furnished.” That’sreplacement value.

Both fair market value and replacement cost are considerations. But property hasto be valued the same way by you and your spouse; the most common way to valueproperty is fair market value.

Division of PropertyCommunity property should be divided equally unless there are compelling

reasons for making an unequal division of property. Generally, separate property isnot divided at divorce and you and your spouse may keep your own separateproperty. An equal division of property does not mean that each of you must receiveone-half of each asset. Instead, an equal division means that the total value of theproperty distributed to each of you should be equal.

Community propertyshould be dividedequally unless thereare compellingreasons for makingan unequal divisionof property.

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◆ ◆ ◆ If you own a homethat was purchasedduring your marri-age, its value isgenerally communityproperty to be dividedat divorce.

The decision to make an unequal division of community property is within thediscretion of the court. While an equal division is most common, a court will considerthe following factors in making an unequal division of community property:1. the duration of the marriage;2. any pre-nuptial agreement between the parties;3. the age, health, occupation, amount and source of income, vocational skills,

employability, and liabilities of each spouse;4. the needs of each spouse;5. whether the property settlement is in lieu of or in addition to maintenance

(alimony);6. the present and potential earning capability of each spouse;7. retirement benefits including Social Security, civil service, military, and railroad

retirement benefits.

Division of DebtsThe division of property must also take into account the debts incurred by you or

your spouse during your marriage. These debts could include amounts owed on a car,home, credit cards, home equity loan, unpaid bills, and unpaid taxes. These debtsmust be considered even if you did not personally sign the agreement leading to thedebt or did not consent to incurring the debt. The material in the following sectionswill help you begin to inventory and value property and to inventory debts.

This publication does not discuss valuation of closely held corpora-tions, family businesses, and professional corporations. It also does notdiscuss property rights in (and valuation of) professional licenses andcollege degrees. If your divorce involves any of these issues, you needtechnical and legal help beyond the scope of this publication.

If You Own a HomeIf you own a home that was purchased during your marriage, its value is generally

community property to be divided at divorce. However, if the money used as a downpayment on the home belonged to one of you before marriage, is a rollover from thesale of a house owned by one of you before marriage, or was given to one of you, thehouse may not be community property.

In addition, questions regarding the community character of the house may ariseif only one spouse’s name appears on the deed to the property or the mortgage. If yourhouse is not community property, but you or your spouse made payments on themortgage using your income, you may be entitled to reimbursement of the amountpaid

If your house is community property, this value may be divided in several ways:• You may sell your home and split the proceeds with your spouse.• One of you may buy your spouse’s share of the house.• One of you may retain the right to live in the house for a certain period of time

(while the children are minors, for example) and at some future date sell the houseand divide the proceeds.

• One of you may retain the home, and your spouse may receive other property and/or income of comparable value.

When you make decisions about the house, carefully consider the economicaspects of these decisions:• What is the market value (estimated sales price) of the house?

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• How long would it take to sell the house?• How much equity do you have in the house? (Equity is the value of your

investment — what you could sell your house for, less the balance due on themortgage or purchase contract.)

• How much cash would be available after the house is sold?• Are there income tax considerations?• Can either you or your spouse afford to live in the house after divorce?• What is the cost of alternate rental housing if you do not continue living in this

house?

Market Value or Estimated Sales Price — Market value is the amount ofmoney a buyer would pay for your house. Market value is not necessarily the sameas the price at which a real estate agent would list the house; houses often sell belowlist price.

You might hire a real estate appraiser to determine the market value of the house.Before you hire an appraiser, find out the cost. When you receive the appraisal, readit carefully. Know what the appraisal includes (it usually includes the majorhousehold appliances).

Your property assessment notice gives a dollar amount that the assessor’s officeconsiders market value. If you do not have the property assessment notice, you canget one from your county assessor’s office for about 50 cents. Since market valueschange continuously, the assessor’s figure may not be an accurate estimate of value.For example, it may not reflect the current condition of the house or the currentcondition of the real estate market.

Proceeds from Sale — When a house is sold, there are expenses paid by theseller. The proceeds from the sale is the selling price less the selling expense.Estimate your proceeds on Worksheet 1.

If you are planning to sell your home, talk to more than one real estate brokerbecause commissions and services differ. Check the real estate broker’s contract (thelisting agreement) carefully before you sign. Many of the terms are negotiable.However, the negotiations must take place before you sign the contract.

An agreement for the sale of real estate must be in writing. The earnest moneyagreement names the parties, describes the property, and lists the terms of paymentand the conditions of sale. Read and understand the earnest money agreement beforeyou sign.

Selling at Some Future Date — Some property settlements provide for thesale of the family home sometime in the future; one of you will continue living in thefamily home for a certain period of time. At the end of this time, the home is sold andthe proceeds divided. Sometimes, the parent with the custody of minor children livesin the home, and the sale takes place when the youngest child is 18.

If you are considering postponing sale of the house, decide these points:• Before the sale, who pays the principal? interest? insurance? taxes?• Before the sale, who pays for major repairs such as a new roof? or a new furnace?• Before the sale, who pays for routine upkeep such as lawn care? painting? minor

repairs?• Are there income tax consequences to consider?• When the house is sold, how will the proceeds be paid? Will one person have a

lien on the house that will be paid off at sale? Or will the sale proceeds be divided?

Often one personwants to remain inthe family home afterthe divorce. Stayingin the family homemay provide securityand eliminate costsand stresses associ-ated with moving.

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◆ ◆ ◆If you overestimatethe fair market valueof householdappliances andfurnishings, you alsooverestimate both thevalue of the propertyto be divided and theshare of the propertyof the person receiv-ing the appliancesand furnishings.

Income Tax Consequences — When a home is sold and there is gain (the saleprice is greater than the purchased price), the gain is income and is taxable.Generally, this gain is taxable in the year the home is sold. Moving to a smaller home,relocating to a less costly area, or deciding to rent is an important decision. Startingwith homes sold after May 6, 1997, up to $500,000 of current and deferred profitis tax free for joint filers ($250,000 for single filers). And the exemption can beclaimed every two years. Previously, many divorcing people who have sold theirhomes have felt compelled to take advantage of a rule that let them defer tax on anyprofit by buying a replacement home of at least equal value within two years or usinglaws that applied only if you were over the age of 55. Ask a tax expert before youdecide whether to sell the house before or after the divorce or whether one or bothof you should sell the house.

Helpful tax publications are available from the Internal Revenue Office: No. 523,Tax Information on Selling Your Home; No. 504, Tax Information for Divorced orSeparated Individuals; No. 551, Basis of Asset; and No. 555, Community Property.The Internal Revenue Service is listed in your phone book under “U.S. Government”or can be contacted by calling 1-800-TAX-1040.

The Cost of Staying in the Family Home — Often one person wants toremain in the family home after the divorce. Staying in the family home may providesecurity and eliminate costs and stresses associated with moving. Worksheet 2 willhelp you estimate the monthly cost of living in the house. Is this affordable onafter-divorce income? If it isn’t affordable, staying in the house will not providesecurity or eliminate stress.

In addition to monthly costs, consider the household work. Who has been doingthe repairs, maintenance, yard work, and housekeeping? If you have been doing allor some household work before your divorce, will you be able to continue to do itafter you divorce? If after divorce you will be employed for longer hours, you willhave less time for household work. If your spouse has been doing some householdtasks, can you do them or can you hire someone to do them?

Estimated Costs of Rental HousingIs rental housing available as an alternative to staying in the family home? If

several children live with you, rental housing may be difficult to find. If rentalhousing is available, use Worksheet 3 to estimate monthly rental costs.

In addition to the monthly rent, there are some one-time costs: moving costs,security deposits, pet deposits, telephone and utility deposits, and hookup costs. Andyou may have to pay the first and last months’ rent when you sign the lease.

As you look at the cost of renting, think of other factors related to changinghousing location. Will you be closer to or further from work? Will you be closer toor further from child care or schools? If you will be further from work, child care,or schools, you will spend more money and time driving.

Household Appliances and FurnishingsHousehold appliances and furnishings acquired during your marriage are gener-

ally community property and should be divided at divorce. You need to determinewho gets which appliances and furnishings, and you need to establish the fair marketvalue of this property. If major appliances were included in the appraisal value of thehouse, do not list them separately. Don’t forget to include the value of coins, stamps,guns, and collectibles.

The fair market value of property is the price someone would pay for the item.Even though it may be costly to replace existing household appliances and furnish-ings with new ones, the fair market value is often very low.

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If the policy wasacquired aftermarriage andpremiums were paidwith communityproperty, then thepolicy is communityproperty and ownedby both spouses, eventhough just one ofyou is named asowner.

If you overestimate the fair market value of household appliances and furnishings,you also overestimate both the value of the property to be divided and the share ofthe property of the person receiving the appliances and furnishings.

Estimate the fair market value by looking at the price of similar items of the sameage at second-hand stores and garage sales, and in newspaper ads. You could alsohire an antique dealer or a second-hand dealer to appraise your household goods.

Another way to determine a value for household items is to determine depreciatedvalues. Depreciation is a decrease in value over a period of time due to wear, tear,and age. To determine depreciation you need to know the age and original cost of theitem and its life expectancy. When thinking about life expectancy ask yourself,“How much longer will this last?” That, added to how long you’ve owned theappliance, is its life expectancy. Local appliance or furniture dealers may also be ableto help you determine life expectancy.

Automobiles and Other VehiclesCars, campers, trucks, motorcycles, etc., acquired during marriage are generally

community property to be divided at divorce. The same exceptions that applied todetermining whether your house was community property also apply to vehicles.You need to determine the value of the vehicle, who gets the vehicle, and who paysany debt owed on the vehicle.

Automobiles and most other vehicles depreciate in value over a period of years.The estimated fair market value of a car may be found in a used car guide. Referencebooks on values of used cars are published by the National Automobile DealersAssociation (N.A.D.A.) and by Kelly Blue Book and are available in most libraries.Banks and other lenders often have these books and can give you an estimate of avehicle’s value.

A car dealer can also tell you the high and low book values for a particular make,model, and year of car. The high book value is an estimate of a car’s retail value —what it would sell for to a consumer. The low book value is an estimate of itswholesale value — what the dealer would pay for it. These, of course, are estimates.Cars in very good condition or with extra features may be sold for more, and cars inpoor condition or with high mileage and few features may be sold for less.

If money is owed on the car, you need to decide who will pay this debt. In someinstances, it may be possible and desirable to refinance the vehicle so the loan is onlyin the name of the spouse who is keeping the car. If the debt is not refinanced, oneof you (often the person keeping the car) will usually agree to pay the debt owed byboth of you. This agreement should be in writing. The property agreement shouldstate which person “assumes the obligation” and agrees to “hold the other party freefrom liability” or “hold harmless the other party.” This means that one of you agreesto pay the debt.

However, the creditor (the person to whom the money is owed) may be able torequire payment from either you or your spouse even if the loan was not in bothnames. If that happens, whichever one of you was to be held free from liability paysthe creditor and then may bring legal action against your spouse, who agreed to paythe debt.

If you continue to have responsibility for the debt on a car even if you don’t havepossession of the car, be sure that the car remains properly insured.

Bank Accounts, Investments, Stocks, and BondsIf you or your spouse owns bank accounts, stocks, bonds, and mutual funds that

were acquired during marriage, these are generally community property to beconsidered in the property settlement. Even if the stocks and bonds themselves are

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not community property, the interest and dividends are considered communityproperty. Determine current value using annual or quarterly statements. If you do notknow what assets you own, look at Schedules B and D of your Federal income taxreturn for the past 5 years.

Schedule B of the Federal income tax return shows if you have had interest anddividend income. If interest income or dividend income exceeded $400, the scheduleindicates the financial institution that paid the interest. This gives you some idea ofthe accounts and other assets of you and your spouse.

Schedule D of the Federal income tax return reports gains and losses from the saleof investment assets such as stocks and real estate. If assets have been sold in earlieryears, the proceeds may have been reinvested into new assets.

If you do not have copies of past Federal income tax returns, they are availablefrom the Internal Revenue Service. To order, use IRS form 4506, Request for Copyof a Tax Return. It takes at least 2 months, and returns are available for the past 5 years(in some instances, for earlier years).

Life InsuranceLife insurance purchased during marriage may be community property and is

considered in divorce agreements if:1. it has cash value; and/or2. it is needed to provide protection against the early death of a person obligated to

pay child support or spousal support.Use Worksheet 4 to list the following information about current life insurance

policies:

Who is the Insured? — The insured is the person on whom death benefits willbe paid. The policy will state the name of the insured.

Who Owns the Policy? — This is the person who pays the premium, namesthe beneficiaries, and can cancel the policy. The person to whom the bill is addressedis the owner. The policy states the name of the owner. If the policy was acquired aftermarriage and premiums were paid with community property, then the policy iscommunity property and owned by both spouses, even though just one of you isnamed as owner.

Who is the Beneficiary? — The beneficiary is the person(s) who receives thebenefits on the death of the insured; his or her name is stated on the policy.

What is the Face Value? — The face value is the amount of money that willbe paid to the beneficiaries upon the death of the insured.

Is There a Cash Value? — Cash value is the amount of money the owner ofthe policy would receive if the policy were cancelled before the death of the insured.Typically, whole life insurance has cash value; term and group life insurancepolicies do not. Look for a Table of Cash Value in the policy or contact your agent.Not all insurance policies have a cash value.

Are There Any Loans Against the Cash Value? — Cash value may be usedas collateral for loans. Loans reduce the death benefit of the policy.

Life Insurance as PropertyIf you own life insurance with cash value, that cash value may be community

property. At divorce, you need to decide who is to own the insurance policies. Theowner receives property, and the value of the property is the policy’s cash value —not the face value. The owner has the right to name the beneficiary and to decidewhether the policy will continue.

At divorce, you needto decide who is toown the insurancepolicies.

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Life Insurance and Child or Spousal SupportThe reason for life insurance is to provide income should the insured person die.

When you have young children, you may want the insurance policies on one or bothof you to continue. One common way this is done is to have a paragraph in theproperty agreement or divorce decree that states:

(Name of husband or wife) shall maintain insurance on (his orher) life in the total sum of $________ as long as (he or she) isrequired to pay child support. The insurance should be payable to_______________________ as trustee for the children. If suchinsurance is not in force at death, the children shall have a claimagainst the estate for $_________.

There are other ways to assure that insurance benefits will be available for thesupport of your children. If you have young children or a child with special needs andpresently have insurance, ask your attorney about ways to ensure continuation of theinsurance.

When one of you is paying spousal support or a property settlement over a periodof years, you may want to continue the insurance policy on the spouse owing thepayments. One way of doing this is to include a paragraph in the property settlementor divorce decree similar to the paragraph above. Another way is actually transfer-ring ownership of the policy to whichever one of you is receiving the payments. Thenew owner, however, should evaluate whether the premiums are affordable.

If there are either child support or spousal support obligations, the court can orderpresent life insurance policies to continue, the purchase of additional life insurancecoverage, or (if there is no insurance) the purchase of new life insurance policies.

Retirement Accounts and PlansMany couples have substantial sums of money in retirement accounts or plans.

Money accumulated in these accounts during the marriage, and the future benefitsresulting from the contributions during the marriage, may be community propertyand will be considered in the divorce settlement. A nonemployed spouse may beentitled to a share in the future benefits of these plans.

There are many types of retirement accounts and retirement plans, includingdefined benefit and defined contribution plans, Individual Retirement Accounts(IRA’s), tax-sheltered annuities, Keogh plans, deferred compensation, profit-shar-ing, and employee stock ownership, 401(k) or 403 (b) plans.

Each of these is different. You and your spouse need to list all of these accountsin the name of either spouse and gather as much information as possible about theplan or account. Valuing the plans is difficult; in most cases, they should be valuedby a qualified person, such as an actuary. If you live in a metropolitan area, you mayfind the heading “actuaries” in the yellow pages of your phone book. Or youraccountant or attorney may be able to recommend someone with actuarial training.

Before hiring the actuary, find out how much the evaluation will cost. In mostinstances, there is one fee for the evaluation and another fee if the actuary testifiesin court.

After plans are valued, decisions need to be made about how these values will beallocated to you and your spouse. In some cases, the value of retirement accounts/plans is assigned to the employed spouse, and assets of equal value are assigned tothe other spouse.

In other cases, the present value of the future benefits of the retirement accounts/plans is divided. And in still others, the retirement assets are not divided until thebenefits of the accounts/plans are actually received. The alternatives differ with thetype of plan and individual situations.

Many couples havesubstantial sums ofmoney in retirementaccounts or plans.

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Retirement accounts/plans come in all sizes and shapes. The following sectionshave information about several common types of retirement accounts/plans.

IRA’s and Keogh PlansIf payments have been made to IRA’s or Keogh plans during a certain year, this

information will appear on page 1 of your Federal income tax return (Form 1040) forthat year. The accounts in which these payments were deposited issue annualstatements that indicate present value.

If the money is withdrawn from the account, there is income tax due and perhapspenalties to pay. Therefore, the present value of the IRA or Keogh plan is the accountvalue less taxes and penalties due if money is withdrawn.

An IRA can be transferred from one spouse’s name to the other spouse with notax consequences. (If, however, you are not yet 59 1/2 years old and you withdrawthe money from the new IRA, there will be income tax due and a 10 percent penalty.)

A Keogh plan is harder to transfer because of income tax consequences. Beforeterminating a Keogh plan to divide funds, carefully check the income tax conse-quences.

Other Employee PlansEmployee wage receipts usually indicate whether an employee is participating in

deferred compensation, tax-sheltered annuities, profit-sharing, or employee stockownership plans. Gather as much information as possible about these from thepersonnel office at the place of employment.

You need to know what rights, if any, the employee has to withdraw funds fromthe account at the present time and, if the employee has such rights, what taxes aredue on amounts withdrawn.

Pension PlansThere are many kinds of pension plans, each with a set of rules on allowances.

Typical plans include Federal and State civil service retirement; military pensions;and industry, company, and union retirement. Check with employers or labor unionsto see what pension plans exist for the employed spouse. Get copies of bookletsexplaining the plans and benefits.

The information you’ll need includes the following:

• Termination Benefits — This is the amount, if any, the employee couldwithdraw if he or she quits or is fired at the present time.

• Vesting — When the pension is vested, the employee has the right to some futurebenefits from the plan, even if she or he quits or is fired.

• Maturity — When the plan matures, the employee has the right to the benefits.Usually, this is after the employee has worked a specified number of years andreaches a specified age.

• Amount of Future Benefits — This is the amount that will be paid when theplan matures. It may be expressed as a percentage of the highest 3 or 5 years’salary. It may be available in a lump sum or as a payment made monthly orannually until death. Look for information about the benefits paid at early or lateretirement, and the benefits paid if the employee becomes disabled or dies beforeretirement.

NOTE: This section doesn’t cover Social Security benefits. However, Social Security doesprovide income at retirement age for an employed person and (under some conditions)for a former spouse. This is discussed in “Spousal Support.”

Check withemployers or laborunions to see whatpension plans existfor the employedspouse.

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DebtsIn addition to dividing your property, you must determine who will pay which part

of the debts incurred during the marriageList all of your and your spouse’s debts including home mortgage, car payments,

student loans, credit card accounts, unpaid bills, and unpaid taxes. Decide who willbe responsible for each debt or percentage of debt.

Usually, one of you “assumes the obligation” and agrees to “hold the other partyfree from liability” or “hold harmless the other party.” This means that one of youagrees to pay. If you do not pay, the creditor may collect from either spouse.

Creditors are not bound by any agreement between the spouses. If whichever oneof you who assumed the debt fails to pay, your spouse may be able to bring actionagainst you.

Summarize your information about debts on Worksheet 5.

Proposed Property DivisionList all the property owned and debts owed. List the current fair market value for

property and amount owed on debts. Determine the net value (assets minus debts)each of you would receive under this proposal. Use Worksheet 6 to record theinformation.

If the property settlement or proposed divorce decree includes promises to payamounts or to sell property or provides for liens against real property in the future,it must be in writing. This is called a “property agreement.”

Do not sign a property agreement until you understand it. If you are uncertainabout what it means or if you feel it is unfair, consult your own attorney — not yourspouse’s attorney — before you sign it.

Child SupportBoth of you are responsible for the financial support of your minor children. If one

of you is unable to work because of family responsibilities or because of a physicalcondition, it may be impossible for you to provide child support. However, a parentwho is employable must support his or her children. The court will determine yourobligations by applying the Child Support Guidelines discussed on the followingpages.

Your support obligation continues as long as your child is a minor or until the childis emancipated. A child becomes emancipated at age 18 or earlier if he or she marriesor enters the military service. If a child continues high school after reaching the ageof 18, the court may order child support to continue until age 19, or until the childdiscontinues his or her high school education, whichever is sooner. A court may alsoorder support continue for a child with special needs.

A court will not order child support past age 19 unless the parents agree in theirdivorce settlement that support will continue while a child is receiving post-highschool training or attending college. Parents may choose to continue supportobligations for “emancipated” students; however, if both parents do not agree,support is not automatic for children past age 18, but must be bargained for in anegotiated settlement.

The two major questions in determining child support payments are: What are thefinancial needs of the child or children? How much of this cost should be paid by eachparent?

No charts or tablestell exactly how muchit costs to raise achild.

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The Financial Needs of the ChildNo charts or tables tell exactly how much it costs to raise a child. As a parent, you

should be aware of the financial commitment necessary for raising children. Someestimated costs are available. Table 1 on the next page gives you a general idea ofhow much it costs to raise a child based on the annual expenditures on a child by atwo-parent family. For the most recent estimates, send a self-addressed, stampedenvelope to: Extension Family Economics Specialist, Niccolls Building, Universityof Idaho, Moscow, ID 83844-3188. Use Worksheet 7 to help calculate the cost ofraising your children.

Child Support GuidelinesIdaho has adopted Child Support Guidelines that must be used in setting child

support unless one of you convinces the court that the guidelines would be unjust orinappropriate. The guidelines are intended to promote uniform and adequate childsupport awards; the Idaho Supreme Court will periodically review the guidelines tokeep them current. The information that follows is correct as of January 1992, butthe guidelines may be adjusted in later years and different amounts may be required.

The guidelines are based upon the following basic principles:1. Both parents share legal responsibility for supporting their child. The amounts in

the guidelines are the same whether the parents are separated, divorced, remar-ried, or never married. The support responsibility should be divided in proportionto each parent’s economic resources.

2. Child support is given priority over the needs of parents or creditors in allocatingfamily resources.

3. The sex of the custodial parent, the parent who will have the physical custody ofthe child most of the time, should be disregarded.

4. If both parents are below the poverty level, support will be determined on anindividual basis, but rarely will be set at zero.

In the rare circumstance that the court doesn’t apply the guidelines, the followingwill be considered:1. the financial resources of the child;2. the financial resources, needs, and obligations of both custodial and noncustodial

parents;3. the standard of living the child enjoyed during the marriage;4. the physical and emotional condition and needs of the child and his or her

educational needs;5. the availability of medical coverage for the child at reasonable cost; and6. the actual tax benefit recognized by the party claiming the federal child depen-

dency exemption.Should either you or your spouse plan to marry someone else immediately after

your divorce, the new spouse’s income and resources would ordinarily not beconsidered in computing child support.

Income Determination Under the GuidelinesTo determine child support under the guidelines, you must know the incomes of

you and your spouse. Income is defined as gross income of the parents; or, if one ofyou is voluntarily unemployed or underemployed, your gross potential income.

Gross Income — This includes income from any source: salaries, wages, com-missions, bonuses, dividends, severance pay, pensions, interest, trust income,

. . . the new spouse’sincome and resourceswould ordinarily notbe considered incomputing childsupport.

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Whichever of youcan obtain yourchild’s healthinsurance at the leastcost should provide it.

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Table 1. Estimated annual expenditures* on a child by husband-wifefamilies, overall United States, 1995.

Child careAge of Transpor- Health and Miscel-child Total Housing Food tation Clothing care education laneous†

Income: Less than $33,700 (Average=$21,000)

0-2 $5,490 $2,100 $780 $700 $370 $370 $630 $5403-5 5,610 2,080 870 680 360 360 710 5506-8 5,740 2,010 1,120 790 410 410 420 580

9-11 5,770 1,810 1,340 860 450 450 250 61012-14 6,560 2,020 1,410 970 760 450 180 77015-17 6,460 1,630 1,520 1,300 670 480 300 560Total $106,890 $34,950 $21,120 $15,900 $9,060 $7,560 $7,470 $10,830

Income: $33,700 to $56,700 (Average=$44,800)

0-2 $7,610 $2,840 $930 $1,050 $440 $490 $1,030 $8303-5 7,810 2,820 1,080 1,020 430 470 1,140 8506-8 7,870 2,750 1,370 1,130 470 540 730 880

9-11 7,860 2,550 1,620 1,200 520 580 480 91012-14 8,580 2,760 1,630 1,310 880 590 350 106015-17 8,710 2,370 1,810 1,660 790 620 600 860Total $145,320 $48,270 $25,320 $22,110 $10,590 $9,870 $12,990 $16,170

Income: More than $56,700 (Average=$84,800)

0-2 $11,320 $4,520 $1,240 $1,470 $580 $560 $1,550 $1,4003-5 11,540 4,490 1,400 1,440 570 540 1,690 1,4106-8 11,500 4,420 1,690 1,550 620 620 1,160 1,440

9-11 11,430 4,230 1,960 1,620 670 670 810 1,47012-14 12,270 4,440 2,060 1,730 1,120 670 620 1,63015-17 12,550 4,050 2,170 2,100 1,010 710 1,090 1,420Total $211,83 $78,450 $31,560 $29,730 $13,710 $11,310 $20,760 $26,310

*Estimates are based on 1990-92 Consumer Expenditure Survey data updatedto 1995 dollars using the Consumer Price Index. The figures represent esti-mated expenses on the younger child in a two-child family. Estimates areabout the same for the older child, so to calculate expenses for two children,figures should be summed for the appropriate age categories. To estimateexpenses for an only child, multiply the total expense for the appropriate agecategory by 1.24. To estimate expenses for each child in a family with threeor more children, multiply the total expense for each appropriate age categoryby 0.77. For expenses on all children in a family, these totals should besummed.†Miscellaneous expenses include personal care items, entertainment, andreading materials.Source: Family Economics and Nutrition Review, Vol. 9, No. 3, 1996.

annuities, Social Security and veteran’s benefits, welfare payments, judgments,student loans, worker’s compensation, unemployment benefits, and disability pay-ments.

The court may consider when and for what duration the receipt of funds fromgifts, prizes, net proceeds from property sales, severance pay, and judgments will beconsidered as available for child support. Benefits received from public assistanceprograms for the parent shall be included except in cases of extraordinary hardship.

For income from self-employment, rent, or ownership of a business, gross incomeis defined as gross receipts minus ordinary and necessary business expenses.Deductions, such as depreciation or investment tax credits, are excluded. Theamount claimed by a self-employed parent as income for tax purposes may differfrom the amount of income used for computing child support.

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In-kind payments, such as the value of a company car, free housing, room andboard, will also be counted as gross income. See Worksheet 8.

Gross Potential Income — If one of you is voluntarily unemployed orunderemployed, child support is based on gross potential income. For example, ifyou quit a job, or decide to work only part-time, the amount of child support may beset as if you were still working full time. Potential income is based on your workhistory and qualifications, and also on employment opportunities. You are notconsidered underemployed while staying at home to care for a child not in school.

The guidelines allow an adjustment from gross income for pre-existing court-ordered child support currently being made for children from another relationship orfor maintenance of a former spouse. Also, an adjustment to gross income is made forthe cost of health insurance coverage for those children. See Worksheet 9.

Whichever of you can obtain your child’s health insurance at the least cost shouldprovide it. Only the child’s health insurance premium is deducted, not the amount ofthe premium for the entire family. The Guidelines provide that any of the child’shealth care expenses not covered by insurance should be shared equally by both ofyou over and above your child support obligation.

The basic child support amount does not include the cost of work-related childcareexpenses. These expenses are ordinarily shared equally by both parents and areincluded in the child support order. The amount to be added is the net childcare cost(actual childcare costs minus childcare tax credits) up to an equal sharing of theexpenses.

ComputationsThe basic child support obligation (without considering health care insurance or

childcare costs) is based on the gross income of both parents, according to the ratesin Table 2 on the next page.

Where both of you have gross income (either actual or potential), the amount ofchild support computed above is prorated between both of you in proportion to yourgross incomes.

Example: Let’s say you have two children but they do not live with you (that is,you do not have custodial care); rather, they live with your spouse. If you earn$25,000 a year and your spouse earns $10,000, child support would be based uponyour combined gross income of $35,000. By looking at Table 2, you can see that thefirst $10,000 of your gross income would accrue child support at the two-child 25percent rate ($208 per month), the second $20,000 would accrue child support at thetwo-child 23 percent rate ($383 per month), and the final $5,000 at the two-child 20percent rate ($83 per month), for a total child support obligation of $674 per month.You and your spouse would divide that amount in proportion to your own grossincome. That means you’d wind up paying $479 ($25,000/$35,000 or 71 percent) toyour spouse as your share of child support.

Another way to calculate child support is to use Table 3, a schedule of monthlychild support amounts. Go down the first column until you find your combined grossmonthly income. Read across to see the child support amount for the correct numberof children you have. Multiply that amount by the percentage of your total combinedgross monthly income earned by whichever one of you does not have custody of yourchildren to determine how much that parent must pay in child support.

When Guidelines Apply — As you can see from the computation chart andfrom Table 3 on page 19, the Child Support Guidelines only apply when yourcombined annual income is between $6,000 and $150,000. Child support must becomputed on a case-by-case basis if your combined income is below $6,000 orabove $150,000.

Your child support iscomputed by multi-plying your childsupport obligation bythe percentage oftime your childspends with its otherparent.

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Table 2. Computations for Basic Child Support.The basic child support obligation shall be based upon theGuideline Income of both parents, according to the ratesset out in the schedule below: (the amounts are rounded offto the nearest dollar).

Number of children and parent's income Per month Per year

1 child:17% of the 1st $10,000 of combined Guideline income 142 1,70015% of the next $20,000 of combined Guideline income 250 3,0013% of the next $20,000 of combined Guideline income 217 2,60010% of the next $20,000 of combined Guideline income 167 2,0007% of the next $20,000 of combined Guideline income 117 1,4004% of the next $20,000 of combined Guideline income 67 8003% of the next $20,000 of combined Guideline income 50 6003% of the next $20,000 of combined Guideline income 50 600

1,060 12,7002 children:25% of the 1st $10,000 of combined Guideline income 208 12,70023% of the next $20,000 of combined Guideline income 383 4,60020% of the next $20,000 of combined Guideline income 333 4,00015% of the next $20,000 of combined Guideline income 250 3,00010% of the next $20,000 of combined Guideline income 167 2,0007% of the next $20,000 of combined Guideline income 117 1,4006% of the next $20,000 of combined Guideline income 100 1,2006% of the next $20,000 of combined Guideline income 100 1,200




2,751 33,000

Other AdjustmentsShared Physical Custody — If you are the noncustodial parent and have

your child more than 35 percent of the year (not counting periods of less than threeconsecutive overnights), then an adjustment is made in child support. Your childsupport is computed by multiplying your child support obligation by the percentageof time your child spends with its other parent. The child support obligations are thenoffset, with the parent owing more child support paying the difference between thetwo amounts. See Worksheet 9.

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Extended Visits — If you are the noncustodial parent and have your child foran extended visit of 30 days or more, then child support is usually reduced by 50percent during the time of the visit. For example, if your child spends 2 months ofhis or her summer school vacation with you, then you would pay only one-half (50%)of the usual child support payment to your spouse, the custodial parent, for those 2months.

Split Physical Custody — Split custody refers to the situation where each ofyou has custody of at least one of your children. The Child Support Guidelines dictatehow much you owe each other for child support. Whichever of you owes more paysthe difference to the other. To figure child support for a split custody arrangement,the support obligations shown in Table 2 must be pro-rated among all children in thehousehold. For example, if there are three children due support, two of whom livewith you and one lives with the other parent, support is calculated using the schedulefor three children, with one-third of the amount being used to determine the supportobligation for one child and two-thirds of the amount for two children. SeeWorksheet 10.

Future Adjustments — The amount of child support set by the court will notordinarily change with an increase in the cost of living unless you include a provisionfor future adjustment. This might be done with a provision that child support will bereviewed periodically when there are changes in your incomes. Or child supportcould change based on a change in the Consumer Price Index, or could change by acertain percent each year. You might agree to change support when your childreaches a certain age. Without a provision for future adjustment, a change in thesupport amount will not be granted unless you can show that there has been a“permanent, substantial, and material” change in the circumstances of either one ofyou or your child. It is best to plan ahead and consider future needs of the childrenwhen making your initial child support determinations.

Since the guidelines became effective in July 1989, the court will require that theparty seeking child support file an Affidavit Verifying Income with the court. Asample of the Affidavit is attached as Fig. 1.

In addition to using the worksheets to determine the amount of parental support,you also need to consider the following issues related to the children: medical anddental expenses, post-high school education, the timing and method of payments,budgeting and recordkeeping of future changes in support, taxes, life insurance, andestate planning.

Medical and Dental Expenses — Medical and dental insurance for childrenis important. Review carefully any medical and dental benefits available for childrenthrough your employment or your spouse’s. Obtain from your employers the cost ofhealth insurance for the children, information about when and how the children maybe covered, and when and how claims must be made.

The determination of child support takes into account routine, uninsured medicaland dental expenses. There may at some time be nonroutine, uninsured medical anddental expenses. Examples of expenses that might be nonroutine and uninsuredinclude orthodontia, counseling, long-term physical treatments, or special care fora disabled child. Discuss how these expenses will be divided between you and yourspouse.

Post-high School Education — Education beyond high school is importantand expensive. The determination of the child support obligations does not includeany saving for the expenses of post-high school training and education.

Give some consideration to financial support of your child’s post-high schooleducation. What portion of the child’s education do each of you anticipate paying?

The amount of childsupport set by theCourt will notordinarily changewith an increase inthe cost of livingunless you include aprovision for futureadjustment.

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How will the cost be divided between you? What part, if any, is the child expectedto pay? Will the child be eligible for financial aid?

If your children are very young, post-high school education is years away. But theearlier you start to save and accumulate funds, the easier it is.

If you have teenagers, discuss these issues with them. You and your child need tounderstand what education expenses you will provide and under what conditions.

Timing and Method of PaymentsAfter support has been determined, you must decide how payments are to be

made. Most of the time, if you are responsible for paying child support, you will writea check to the other parent. You will then have to forward that check to your localprosecuting attorney’s office. They will record that you paid and send the check on.If your child is in college you may agree to pay support directly to the other parentor directly to the child.

As you consider the date of payments, think about when whichever one of youpays support usually receives your income. Is it convenient to have payments dueabout the same time as income is received? If income is irregular, you must set asidemoney for support payments in those months when there is reduced or no income.

Budgeting and RecordkeepingBudgeting and recordkeeping is important for both parents. If your children live

with you most of the time, you need to estimate the cost of routine expenses andnonroutine expenses. Nonroutine expenses are those that occur only once or twicea year, such as the expense for clothing, medical examinations, and supplies at thestart of the school year. If your child lives with you, you must set up a system to setaside money for these nonroutine expenses.

If you are making child support payments, you need to keep records of allpayments made. Always make payments by check; the cancelled check is proof ofpayment. Likewise, if you are the parent receiving support, you need records of allpayments received. Both of you should keep records of money you spend on yourchildren. These records will be helpful for future planning.

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Always makepayments by check;the cancelled check isproof of payment.

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I hereby state under oath that the following information is true:

A. GROSS INCOME FATHER MOTHER1. Wages, salary, commissions, bonuses, etc. ________ ________2. Rent, royalties, trade, or business income, etc. ________ ________

(Net of ordinary & necessary expenses)3. Interest, dividends, pensions, annuities, etc. ________ ________4. Social Security, worker's compensation, unemployment

benefits, disability, veterans' benefits, etc. ________ ________5. Public assistance, welfare for ❑ self or ❑ children ________ ________6. Alimony ________ ________7. Grants, distributions from trusts, etc. ________ ________8. Other ________ ________9. SUBTOTAL ________ ________

B. ADJUSTMENTS TO GROSS INCOME (I.C.S.G. Sections 6 and 7)1. Straight line depreciation on assets ________ ________2. One-half of self-employment Social Security taxes ________ ________3. Child support & alimony from another relationship ________ ________4. Support for child of another relationship living in the home ________ ________5. ADJUSTMENTS SUBTOTAL ________ ________

C. GROSS INCOME, AS ADJUSTED (line B5 subtracted from line A9) ________ ________D. IN-KIND BENEFITS (I.C.S.G. Section 6(b)) ________ ________

(Housing, food, transportation, recreation)E. POTENTIAL INCOME (I.C.S.G. Section 6(c)) ________ ________

Potential earned income, Potential unearned incomeF. GUIDELINES INCOME (C+D+E) ________ ________G. MONTHLY ICSG INCOME (F+12 months) ________ ________

Fig. 1. Affidavit verifying income.

__________ DISTRICT COURT, STATE OF IDAHOIN AND FOR THE COUNTY OF __________

----------------------------------------, Plaintiff. ) CASE NO.: _________vs. )

) AFFIDAVIT VERIFYING INCOME----------------------------------------, Defendant. )

Spouse’s Social Security Number Signature of Party Submitting

Notary Social Security Number of PartySubmitting Affidavit

Subscribed and sworn tobefore me on_________________, Year______.

Note: This is an example of a document used in an Idaho court. Actual copies can be obtained from your localClerk of the Court’s office.

(I.C.S.G. refers to Idaho Child Support Guidelines)

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Table 3. Basic monthly child support guidelinesschedule

Combined gross Number of children Annualmonthly income 1 2 3 4 5 Income

500 85 125 145 155 170 6,000600 102 150 174 186 204 7,200700 119 175 203 217 238 8,400800 136 200 232 248 272 9,600900 152 224 260 278 304 10,800

1,000 167 247 287 307 335 12,0001,100 182 270 314 336 366 13,2001,200 197 293 341 365 397 14,4001,300 212 316 368 394 428 15,6001,400 227 339 395 423 459 16,8001,500 242 362 422 452 490 18,0001,600 257 385 449 481 521 19,2001,700 272 408 476 510 552 20,4001,800 287 431 503 539 583 21,6001,900 302 454 530 568 614 22,800

2,000 317 477 557 597 645 24,0002,100 332 500 584 626 676 25,2002,200 347 523 611 655 707 26,4002,300 362 546 638 684 738 27,6002,400 377 569 665 713 769 28,8002,500 392 267 692 742 800 30,0002,600 405 612 716 768 828 31,2002,700 418 632 740 794 856 32,4002,800 431 652 764 820 884 33,6002,900 444 672 788 846 912 34,800

3,000 457 692 812 872 940 36,0003,100 470 712 836 898 968 37,2003,200 483 732 860 924 996 38,4003,300 496 752 884 950 1,024 39,6003,400 509 772 908 976 1,052 40,8003,500 522 792 932 1,002 1,080 42,0003,600 535 812 956 1,028 1,108 43,2003,700 548 832 980 1,054 1,136 44,4003,800 561 852 1,004 1,080 1,164 45,6003,900 574 872 1,028 1,106 1,192 46,800

4,000 587 892 1,052 1,132 1,220 48,0004,100 600 912 1,076 1,158 1,248 49,2004,200 612 930 1,098 1,182 1,275 50,4004,300 622 945 1,118 1,203 1,299 51,6004,400 632 960 1,138 1,224 1,323 52,8004,500 642 975 1,158 1,245 1,347 54,0004,600 652 990 1,178 1,266 1,371 55,2004,700 662 1,005 1,198 1,287 1,395 56,4004,800 672 1,020 1,218 1,308 1,419 57,6004,900 682 1,035 1,238 1,329 1,443 58,800

5,000 692 1,050 1,258 1,350 1,467 60,0005,100 702 1,065 1,278 1,371 1,491 61,2005,200 712 1,080 1,298 1,392 1,515 62,4005,300 722 1,095 1,318 1,413 1,539 63,6005,400 732 1,110 1,338 1,434 1,563 64,8005,500 742 1,125 1,358 1,455 1,587 66,0005,600 752 1,140 1,378 1,476 1,611 67,2005,700 762 1,155 1,398 1,497 1,635 68,4005,800 772 1,170 1,418 1,518 1,659 69,6005,900 780 1,182 1,434 1,536 1,679 70,800

6,000 787 1,192 1,447 1,552 1,698 72,0006,100 794 1,202 1,460 1,568 1,717 73,2006,200 801 1,212 1,473 1,584 1,736 74,4006,300 808 1,222 1,486 1,600 1,755 75,6006,400 815 1,232 1,499 1,616 1,774 76,8006,500 822 1,242 1,512 1,632 1,793 78,0006,600 829 1,252 1,525 1,648 1,812 79,2006,700 836 1,262 1,538 1,664 1,831 80,4006,800 843 1,272 1,551 1,680 1,850 81,6006,900 850 1,282 1,564 1,696 1,869 82,800

7,000 857 1,292 1,577 1,712 1,888 84,0007,100 864 1,302 1,590 1,728 1,907 85,2007,200 871 1,312 1,603 1,744 1,926 86,4007,300 878 1,322 1,616 1,760 1,945 87,6007,400 885 1,332 1,629 1,776 1,964 88,8007,500 892 1,342 1,642 1,792 1,983 90,0007,600 896 1,349 1,652 1,805 1,999 91,2007,700 900 1,356 1,662 1,818 2,015 92,4007,800 904 1,363 1,672 1,831 2,031 93,6007,900 908 1,370 1,682 1,844 2,047 94,800

8,000 912 1,377 1,692 1,857 2,063 96,0008,100 916 1,384 1,702 1,870 2,079 97,2008,200 920 1,391 1,712 1,883 2,095 98,4008,300 924 1,398 1,722 1,896 2,111 99,6008,400 928 1,405 1,732 1,909 2,127 100,8008,500 932 1,412 1,742 1,922 2,143 102,0008,600 936 1,419 1,752 1,935 2,159 103,2008,700 940 1,426 1,762 1,948 2,175 104,4008,800 944 1,433 1,772 1,961 2,191 105,6008,900 948 1,440 1,782 1,974 2,207 106,800

9,000 952 1,447 1,792 1,987 2,223 108,0009,100 956 1,454 1,802 2,000 2,239 109,2009,200 959 1,460 1,811 2,012 2,255 110,4009,300 962 1,466 1,820 2,024 2,270 111,6009,400 965 1,472 1,829 2,036 2,285 112,8009,500 968 1,478 1,838 2,048 2,300 114,0009,600 971 1,484 1,847 2,060 2,315 115,2009,700 974 1,490 1,856 2,072 2,330 116,4009,800 977 1,496 1,865 2,084 2,345 117,6009,900 980 1,502 1,874 2,096 2,360 118,800

10,000 983 1,508 1,883 2,108 2,375 120,00010,100 986 1,514 1,892 2,120 2,390 121,20010,200 989 1,520 1,901 2,132 2,405 122,40010,300 992 1,526 1,910 2,144 2,420 123,60010,400 995 1,532 1,919 2,156 2,435 124,80010,500 998 1,538 1,928 2,168 2,450 126,00010,600 1,001 1,544 1,937 2,180 2,465 127,20010,700 1,004 1,550 1,946 2,192 2,480 128,40010,800 1,007 1,556 1,955 2,204 2,495 129,60010,900 1,010 1,562 1,964 2,216 2,510 130,800

11,000 1,013 1,568 1,973 2,228 2,525 132,00011,100 1,016 1,574 1,982 2,240 2,540 133,20011,200 1,019 1,580 1,991 2,252 2,555 134,40011,300 1,022 1,586 2,000 2,264 2,570 135,60011,400 1,025 1,592 2,009 2,276 2,585 136,80011,500 1,028 1,598 2,018 2,288 2,600 138,00011,600 1,031 1,604 2,027 2,300 2,615 139,20011,700 1,034 1,610 2,036 2,312 2,630 140,40011,800 1,037 1,616 2,045 2,324 2,645 141,60011,900 1,040 1,622 2,054 2,336 2,660 142,800

12,000 1,043 1,628 2,063 2,348 2,675 144,00012,100 1,046 1,634 2,072 2,360 2,690 145,20012,200 1,049 1,640 2,081 2,372 2,705 146,40012,300 1,052 1,646 2,090 2,384 2,720 147,60012,400 1,055 1,652 2,099 2,396 2,735 148,80012,500 1,058 1,658 2,108 2,408 2,750 150,000

Table 3. (cont.)

Combined gross Number of children Annualmonthly income 1 2 3 4 5 Income

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Spousal SupportThis support is payments made after divorce by one spouse to the other spouse.

It is sometimes referred to as alimony or maintenance. There is no automatic rightto spousal support, and support is not favored by Idaho Courts, since it is presumedthat under a community property system each spouse receives one-half of the maritalproperty. When it is awarded, it is usually for a temporary period to give the spousetime to become employable or when one of the spouses has no means of adequatesupport.

In determining the amount of spousal support the court must consider thefollowing factors:1. the financial resources of the spouse seeking maintenance;2. the spouse’s ability to meet his or her own needs independently;3. the time necessary to acquire sufficient education and training to enable the

spouse seeking maintenance to obtain employment;4. the duration of the marriage;5. the age and the physical and emotional condition of the spouse seeking mainte-

nance;6. the ability of the spouse from whom maintenance is sought to meet his or her needs

while meeting those of the spouse seeking maintenance; and7. the tax consequences to each spouse.

In deciding whether one of you should pay your spouse support, consider each ofyour past, present, and future earning capacities.

Did one of you decrease earning capacity during the marriage by staying home tocare for children? Did one of you decrease earning capacity during the marriage byquitting a job to move when your spouse was transferred? Did one of you increaseearning capacity by acquiring additional education?

Look at present earnings. If both of you are employed and have similar incomes,there is most likely no need for spousal support. If one of you is not employed, couldyou become employed? Will your health and family responsibilities allow employ-ment? If so, estimate your probable salary by checking the local newspaper, ortalking with an employment counselor at the State Employment Office.

If you are unemployed or underemployed, could you increase earnings byattending school or participating in a training program? If so, how much would thiscost, and how long would it take? Your spouse could help support you while this“employment rehabilitation” is taking place.

In addition to each of your present earnings, consider what these earnings will bein 5 or 10 years — are they likely to increase or decrease? Estimate also the incomefrom pensions, Social Security, and investments that will be available for each of youafter retirement age.

Use Worksheet 11 to summarize this information.

Social SecurityIf You Are Married — If either you or your spouse has worked under Social

Security coverage, you have retirement benefits either as worker or as spouse of theworker. If both of you worked all of your adult lives and had high earnings, both willreceive benefits as workers.

If one of you (usually the wife) never worked, stopped working for several years,or had low earnings, you will receive benefits as the spouse of the worker.

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If you divorce, youmay still be entitledto Social Securitybenefits under yourspouse’s workrecord.

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If You Divorce — If you divorce, you may still be entitled to Social Securitybenefits under your spouse’s work record, or vice versa.

As of January 1, 1985, a divorced person who is at least 62 years of age is eligiblefor benefits based on a former spouse’s earnings, even if the former spouse is notretired. If the divorced person has been divorced at least 2 years, was married at least10 years, and is 62 years of age, benefits will be paid under the former spouse’searnings record.

If a divorced person has his or her own pension based on work in publicemployment not covered by Social Security, the Social Security benefit payable onaccount of the former spouse’s Social Security may be reduced by the amount of thepublic pension.

If you are approaching retirement age, you need to consider what Social Securityand retirement benefits will be available for each of you after the divorce.

Health InsuranceIf one of you is presently insured under the other’s health insurance policy, you

need to determine how health insurance coverage can continue after divorce.If you both are employed, do you have health insurance coverage available

through your own employment, and if so, when could you transfer to your ownpolicy? Some health insurance policies have specified periods for changes andenrollment.

If one of you is not covered by health insurance, it is sometimes possible tocontinue coverage under your spouse’s employer’s policy. Check with the employerto see whether coverage is available and how much it will cost. Which spouse willpay the premium?

Under the federal law known as COBRA (Consolidated Omnibus Budget Recon-ciliation Act), divorced spouses may be entitled to continue group health insurancefor at least 18 months. Although the cost of this coverage cannot exceed 102 percentof the premium the company pays, it is usually considerably less expensive thanbuying individual coverage. Added protection under COBRA can remain availablefor up to 36 months for divorced spouses and for children who lose their status as adependent. These provisions apply as long as persons are not eligible for coverageunder another group plan. This law also applies only if the company employs 20 ormore workers. Also be aware that if you wish to be covered under the COBRA lawthere is a time limit of 60 days after the divorce is granted to notify the insured’semployer of your interest in continuing health insurance coverage.

If one of you is presently unemployed, would you be able to obtain your owncoverage? Group insurance and individual insurance policies are two options. Manyindividuals are eligible for group insurance through places of work, unions, orfraternal organization.

Whenever group insurance is available, it generally costs from 15 to 40 percentless than the same insurance through an individual plan. There may be otheradvantages to group insurance such as no requirement of a physical examination toqualify for coverage, no exclusion for a preexisting condition, and no canceling ofa policy unless the policyholder leaves the group.

MedicaidMedicaid provides medical benefits for children in families where the income is

133 percent below poverty guidelines. Benefits can include vital health careincluding hospital care, visits to the doctor, preventive care, medicine, dental care,immunizations, and eyeglasses. If, in the event of divorce your income dropssignificantly, don’t forgo health care for your children. A single parent with two

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Under federal lawdivorced spouses maybe entitled tocontinue grouphealth insurance forat least 18 months.

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children under age six can have income at twice the minimum wage and the childrenare eligible for Medicaid. If the children are over age six, they may still be eligiblefor Medicaid depending on total family income. Children can get Medicaid even iftheir family has a car, a house, and a savings account. And a family with some healthinsurance can still get Medicaid.

To obtain Medicaid coverage for children, an application must be filed providinginformation such as the family’s income and social security numbers for the parent(s)and children. A family can apply at their local Department of Health and Welfare,and, in some counties, they can apply at a regional hospital, a health department, ora rural health clinic.

Estimated Income/Expense StatementA projected income/expense statement shows estimated income and expenses in

the future. Use Worksheet 12 to estimate income and expenses for each of you afterdivorce.

As you fill this out, list all sources of income in the income section. If you receivecash that you will invest as part of the property settlement, list anticipated earningsfrom the investment. If you will have custody of children and receive child supportpayments, list them as income. If you will be making child support payments, listthem as expenses.

Usually it is difficult to support two households after divorce at the same level asthe one household before divorce. Completing the projected income/expense state-ment will help you visualize your own future financial situation. If you complete thestatement for both of you, it will help you understand and evaluate the fairness of yourproposed settlement.

Other Financial Considerations

CreditYour ability to borrow money is based on your creditworthiness. Your credit

history stored at the credit bureau tells a credit grantor about your past ability tohandle money. This credit history and your income are the two biggest factors thatdetermine creditworthiness.

Joint Accounts During Marriage — Look at your bill. If it comes addressedto you and your spouse, you probably have a joint account. To be sure, check withthe financial institution. Since June 1, 1977, all joint credit accounts are reported inthe credit files of both you and your spouse.

Joint accounts that were opened before June 1, 1977, may still be reported onlyin the husband’s file. To get these joint accounts reported in both names, write to thecreditor (the store or company granting the credit or credit card) and ask that thisinformation be reported in both names.

Before you do, decide whether the credit account was always paid on time. If itwas, transfer the record. If it was overdue on several occasions in the last 7 years, youwill be transferring poor credit history.

After Divorce — A creditor cannot close your account or change its terms unlessyou’re unable or unwilling to pay. However, the creditor can require you to submita new credit application if your original credit account was based on your formerspouse’s income.

To get credit after divorce, you must be creditworthy — that is, you must have agood credit history (including the years before divorce) and the necessary income.

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Completing theprojected income/expense statementwill help youvisualize your ownfuture financialsituation.

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You don’t have to include maintenance or child support payments as income unlessyou want to have them considered as part of your income.

If you do include these payments as income the credit grantor must count them aspart of your income. The credit grantor may, however, verify the regularity withwhich those payments are made.

In the event of a divorce, be sure to pay close attention to the status of your creditaccounts. It is important to make regular payments so your credit record won’t suffer.As long as there is any outstanding balance on a joint account, such as credit cardsand consumer loans, both you and your spouse are liable for it. A divorce decree doesnot relieve you from paying your bills.

Credit Payment PrioritiesYou need to look at your situation and make decisions about how much and when

you can pay. Not all of your debts equally impact your family. The list below containsa list of priorities to establish in dealing with debts. Your priorities may differ.Establish your own list and verify that you have contacted all of your creditors.

Checklist: Creditors to pay firstFirst priority:

√ Mortgage or rent√ Tax liabilities√ Second mortgages√ Auto loans√ Utility companies√ Child support payments

Second priority:√ Finance companies (secured loans)

Third priority:√ Credit cards, Retailers√ Doctors and Dentists√ Hospitals√ Finance companies (unsecured loans)

If the bills are still not paid, they will probably be turned over to an independentcollect agency. While the agency will try to get you to pay, the law protects you fromcertain actions. Debt collectors are prohibited from harassing, oppressing, abusingyou, threatening to take your property without the right to do so, or from using falsestatements (such as implying that they are attorneys or work for a credit bureau orSocial Security). The Fair Debt Collection Practices Act applies to any personal,family or household debt and covers debt collectors who regularly collect debts forothers, but not the creditors themselves or their lawyers.

The law further prohibits debt collectors form contacting you at inconvenienttimes (defined as before 8:00 a.m. or after 9:00 p.m.) or places. The collector maynot contact you at work if your employer disapproves and you notify the debtcollector in writing that you do not want to be contacted at work. They also must nottell anyone else that you are behind in your debts and they cannot use obscene orabusive language.

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As long as there isany outstandingbalance on a jointaccount, such ascredit cards andconsumer loans, bothyou and your spouseare liable for it.

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If a bill collector violates any of your rights under Fair Debt Collection PracticesAct, complain to the Federal Trade Commission, Washington, DC 20580, (202)326-2222 or call the Idaho Attorney General’s Office Consumer Protection Unit 1-800-432-3545.

Creditors’ OptionsCreditors can take several kinds of legal action against you. These actions are

often written into the sales contract you signed. If you fail to make payments, you willreceive letters from a creditor’s attorney or a collection company warning you of theintended action. Here’s a list of possible actions a creditor might take.

√ Acceleration—The entire debt is payable at once if you miss apayment. The court can force you to pay by seizing your property andselling it.

√ Repossession—the creditor can seize the item you bought or theproperty you used as collateral. If the sale of the property brings lessthan the amount you owe, usually you still must pay the difference.

√ Wage garnishment—a court order that requires your employer towithhold part of your wages and pay your creditor.

√ Foreclosure—if you do not make your mortgage payments for at least3 months, your lender takes possession of your home and sells it to payoff the loan. You are responsible for the legal fees and differencebetween the selling price and the amount owed.

All of these actions are very serious and could jeopardize your ability to get creditin the future. If you need to work out an emergency repayment plan with yourcreditors, do so. Missed payments will show that you were delinquent. This couldresult in a poor credit record that will stick with you and you spouse for seven years.

“Fixing” your credit record is not possible. Don’t fall prey to scams that claim tobe able to do so. You can, however, write a 100 word statement explaining yourhardship and have that statement permanently entered into your credit report. Callyour bank and ask for the name of the credit agency which they report to. Send thatletter to all three of the major credit reporting agencies Experian, Eqifax, and Trans-Union. By federal law, someone from the credit reporting agency must help you writethe letter if you need help.

Review your credit reportRequest a copy of your credit report from one of the three credit bureaus listed

below. Usually credit reports cost $8. You can get a free copy only if you were deniedcredit, employment, or insurance. However, you also are entitled to one free reportevery twelve months upon request if you certify that: (1) you are unemployed andplan to seek employment within 60 days, (2) you are on welfare, or (3) your reportis inaccurate due to fraud.

Experian (Formerly TRW)PO Box 2104Allen, TX 75013-21041-800-682-7654

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If you need to workout an emergencyrepayment plan withyour creditors, do so.

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EquifaxPO Box 105873Atlanta, GA 303481-800-685-1111Fax: 1-404-612-3150

Trans Union Corp.PO Box 390Springfield, PA 19064-03901-800-916-8800

Include the following information in your written request for yourcredit report:

• Your first, middle initial, & last name• Spouse’s name• Current home address and zip• Home address for the last 5 years• Social Security number• Date of birth• Verification of your current address, such as a photocopy of a driver’s

license or a utility bill• Sign your request

Should You Consider Loan Consolidation?If you have a number of outstanding loans, a consolidation loan may be consid-

ered. You take out one loan, pay off all bills at once, and then have one debt to payoff to just one creditor (usually extending over a longer period of time). Again, eachpayment will be smaller, but you will commit yourself for a longer period of time,usually at a higher total cost. Shop around, as you would for any type of credit, to findthe lowest interest.

Some of your smaller debts may carry no interest and may be unsecured (meaningthe creditor’s don’t hold any collateral). Some bill consolidation loans may requireyou to put up your household goods, auto, and sometimes your house as security. Beadvised that non payment of this type loan could result in loss of the collateral!

Who to Talk to About Your Financial SituationConsumer Credit Counseling Service (CCCS)

If you’d like to have a confidential chat with an expert on personal debt, find theConsumer Credit Counseling Service in your area. Call 1-800-388-2227 (1-800-388-CCCS). That number will connect you to the National Foundation for ConsumerCredit. They will give you the address and phone number for the CCCS in your area.They provide counseling to families on debt problems. If you want, they’ll help youwork out a family budget, they’ll call your credit card companies and other lenders,and they’ll help negotiate to get your payments reduced.

If You Have No Credit RatingThe best way to establish a credit rating is to establish a good employment record

and have a checking and a savings account. Then open a small charge account witha local retail store, get a credit card with a low credit limit, or get a secured loan froma financial institution. Make payments on these promptly as they become due, andyou will establish your own good credit history.

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If you’d like to havea confidential chatwith an expert onpersonal debt, findthe Consumer CreditCounseling Servicein your area.

◆ ◆ ◆Child care assistance

Working parents, and especially single parents, know that the cost of child careis big part of the family budget. However, your family can get assistance with the costof child care. The dollar amount of assistance depends upon the family income. Forexample, in 1997, a family of three with income below $1,623 a month ($19,467 ayear) may qualify for child care assistance. Ask about the program at your localCommunity Action Agency, child care Resource and Referral, or the Department ofHealth & Welfare.

Food stampsIf your income is reduced, you may be eligible for food stamps. Low income

families can qualify for food stamps while working full time. For example, a familyof three with income at one and one-half times the minimum wage may qualify forassistance. If you want to find out if you are eligible for food stamps, apply throughthe Department of Health & Welfare. Eligibility is determined by your family'sfinancial resources and family income.

When you apply for the Food Stamp program,take this information along:

√ Rent receipts√ House payment book√ Utility bills√ Proof if income for all working members of household, including all

benefits such as Social Security, public assistance and unemploymentbenefits

√ Bank books or any papers showing what you have in savings√ Proof of medical bills (doctor, hospital, etc.).√ Proof of income. * Note: These are general guidelines. Particular details may be subject to

changes based on new state and/or federal regulations.

Income TaxDivorce has income tax consequences. Some information is provided here. You

may also want to obtain Internal Revenue Service publication No. 504 Tax Informa-tion for Divorced and Separated Individuals. To order IRS publications, look under“U.S. Government” in your phone book or call 1-800-TAX-1040.

How Divorce Affects TaxesIdaho’s community property law makes both spouses liable for most debts

incurred while married. Once a joint return is filed, either spouse is liable to pay upto 100 percent of the tax, interest and penalty, if any, determined to be owning, evenif additional amounts become due after divorce.

Marriage and divorce may affect your tax liability. If you marry someone whoalready has a tax debt, at least one-half of what you earn or acquire after marriage canbe taken to satisfy that spouse's debt. This can occur because your wages and otherproperty acquired during marriage become co-owned by your spouse. In addition, ifyou are married to someone who is not paying income taxes on what he or she earns,when the taxes become due, the taxes may be collected from either or both of you.

In the event of a divorce, although the divorce decree may state that your ex-spouse is fully responsible for tax debts, the divorce decree will not stop a taxing

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Once a joint returnis filed, either spouseis liable to pay up to100 percent of thetax owed.

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agency from collecting from you if you have income or assets which can satisfy theliability.

Example: Your divorce decree states your ex-spouse is responsible for the taxdebts incurred during marriage. You file a tax return, alone or with a new spouse, andexpect a return. Your entire refund may be applied to the joint liability incurredduring your prior marriage. Your rights under the state law may allow you to sue yourex-spouse for any money the taxing agency collects from you. Collection willcontinue from one spouse or the other, or both, until the joint tax liability is fully paid.

Before Divorce — Your marital status on December 31 determines your tax-filing status for that year. For example, if your divorce was not final on December31, 1997, you may file a joint return for 1997 even though your divorce is final whenyou file the 1997 return in April 1998.

If you are divorcing, filing a joint return, and expecting a refund, determine howto divide the refund. The refund is property that belongs to both of you.

If you are divorcing, filing a joint return, and owe additional taxes, determine whowill pay the tax. The tax is a debt you both owe.

If your divorce is not final as of December 31, you may also file as a head ofhousehold if you meet all the conditions outlined in the Form 1040 instruction book.

After Divorce — If you were divorced by December 31, you cannot file a jointreturn for that year. You file either as a single person or as a head of household. Theincome tax booklet that comes with the Form 1040 explains who may file as a headof household.

When you are divorced, you must file separate returns. You should determine inthe property settlement which of you claims the child as a dependent. Usually it’swhichever one of you has major physical custody, regardless of the amount ofsupport the other parent provides.

If you are the custodial parent you can waive the right to claim the child as adependent in a given year, allowing the other parent to claim the child as a dependent.If you do, your former spouse must attach to his or her tax return a signed statementfrom you waiving the dependency exemption.

The new tax break is a $400 tax credit per child for 1998. Credits, which you canwrite off directly against tax, are worth much more than deductions (a $400 creditwipes out $400 in tax, but a $400 deduction trims $400 from income subject to tax;in the 28 percent tax bracket, for example, it saves just $112 in tax). The credit, whichgoes up to $500 for 1999, comes on top of the already existing deduction for adependent—currently $2,650. If you expect to claim several credits, you can loweryour withholding to enjoy the benefits of the break in each paycheck. The new creditapplies to children and grandchildren age 16 and younger, unlike dependencyexemptions, which can apply at any age. But to claim the credit, the child mustqualify as a dependent. Divorcing parents need to consider this tax break whendetermining who gets to claim a child’s exemption as related to this new tax credit.

Either of you can deduct medical expenses you paid for your child, regardless ofwho claimed the child as a dependent.

For tax purposes, child support is not income for the parent receiving it and is notdeductible for the parent paying it.

Maintenance or spousal support payments you receive from your spouse are notalways considered taxable income and are not always deductible for your spouse.They are taxable for you and deductible for your spouse only if they are within theIRS definition of alimony. According to the IRS, such payments are alimony if:• payments are made in cash or check (not property) and there is no responsibility

to make payments after one of you dies, and

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◆ ◆ ◆Your marital statuson December 31determines yourtax-filing statusfor that year.

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• payments are not scheduled to decrease when a child marries, leaves school, etc.,and

• payments exceeding $15,000 per year continue for at least 3 years, unless one ofyou dies.If you are receiving maintenance that the IRS considers income for tax purposes,

you may be required to make quarterly estimated tax payments throughout the year.Obtain IRS publication No. 505, Tax Withholding and Estimated Tax.

Earned Income Tax Credit (EIC)Due to a potential decrease in income after divorce, the parent who retains

physical custody of the children may be eligible for the earned income credit on his/her Federal income tax return.

The EIC is a "refundable" credit. This means that you can benefit from the crediteven if you owe no federal income tax. If you are eligible and owe no income tax,you will receive a check from the Internal Revenue Service in the amount of yourcredit. If you owe income tax, the EIC reduces the amount of taxes owed. If yourcredit is greater than the amount of taxes you owe, your tax bill will be reduced tozero and the IRS will send you a check for the remainder of your EIC.

How to receive the EICIf you are eligible, file a federal income tax return. Workers with qualifying

children may use either Form 1040A or 1040. Second, you must also file a tax formcalled "Schedule EIC" with your tax return. You can choose to fill out just the firstside of "Schedule EIC." If you do, the IRS will calculate your EIC for you.

Workers not raising children may use the 1040EZ form, sometimes known as theshort form, to claim their EIC.

If you were eligible in the recent past but did not file for EIC, you may also filefor retroactive EIC payments from the last three years if you have not already filedincome tax returns for those years. In general, if the you did not owe federal incometaxes, no penalty will be assessed for filing late. A household's EIC payments do notcount as income in determining its eligibility or benefit levels for TemporaryAssistance for Families in Idaho (TAFI), Medicaid, food stamps, SSI, or public orsubsidized housing.

How to receive the EIC in your paycheckIf you earned less than $25,078 in 1996 you can receive a portion of the EIC

throughout the year in their paychecks. To apply, an eligible worker must fill outForm W-5, called the "Earned Income Credit Advance Payment Certificate," andgive the bottom portion to his or her employer. The W-5 form is available fromemployers or local IRS offices, or can be ordered by calling the IRS toll-free at 1-800-829-3676. Eligible workers can file a W-5 any time during the year, but they mustfile a new W-5 at the beginning of each year to continue receiving the EIC in theirpaychecks. Workers not raising children are not eligible for EIC advance payments.

See Internal Revenue Service (IRS) Publication 596 for the requirements. Youcan obtain free help from IRS operators during regular weekday business hours bycalling 1-800-829-1040. You can also listen to a recorded message on the EIC 24hours a day by calling the IRS "teletax" service. To hear recorded "teletax" messageson the EIC, dial 1-800-829-4477. Request topic 402 for the English message; for theSpanish message, press * on a touch-tone phone, pause, then press 2, then finallypress 754. The IRS phone number for hearing impaired persons who have access to

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Due to a potentialdecrease in incomeafter divorce, theparent who retainsphysical custody ofthe children may beeligible for theearned income taxcredit.

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TDD equipment is 1-800-829-4059.

BankruptcyEven though your property settlement agreement specifies who has the obligation

to pay certain debts, that agreement may not keep creditors from seeking paymentfrom you on debts your spouse assumed. The creditor will have the right to seekpayment from you on these types of debts under these situations:1. you were personally liable on the debt — that is, you signed the loan papers or

contract;2. the creditor has a security interest in property distributed to you under the property

settlement agreement; and,3. your spouse received insufficient property through the property settlement

agreement to cover the debt.The likelihood of a creditor seeking payment from you increases when your

former spouse has become insolvent or has gone bankrupt.

Wills and Estate PlanningEstate planning is deciding who will receive your property at your death. You may

already have done such planning —preparing a will and naming beneficiaries oninsurance policies, pension funds, IRAs, certificates of deposit, or governmentbonds. When you are divorcing review these documents for necessary changes.

If you have minor children and want your property to be used for your childrenwhen you die, you need to determine the best way to do this and to provide forsomeone to manage the property for the children. Two alternatives are:1. Write a will naming a guardian to manage the children’s property, or2. Establish an estate plan that would pass your property into a trust for the benefit

of the children. The trust would be managed by a trustee you name according toa trust agreement you prepare.

A New Financial LifeAfter divorce, you and your spouse will create a new life, including a new financial

life. Because you divided resources at divorce, each of you individually will have lessthan you had as a married couple. It is important to develop an understanding of yourfinancial situation and a realistic financial plan including a budget and record-keeping system.

If you have children and/or have financial transactions that continue after divorce— child support or spousal support payments, property that will be sold and proceedsthat will be divided in the future — a relationship continues after divorce. This is notthe intimate relationship of marriage, but a business relationship.

Be businesslike with your new “business partner.” When there are issues you mustdiscuss, communicate directly. Do not send messages through children, relatives, ormutual friends. If you need to talk with each other, set a meeting time that isconvenient for both of you. Limit the discussion time and topics.

If the child’s future dental treatment and expenses are the topic, talk only aboutthat. Share information. The parent who has talked with the dentist cannot assumethe other parent knows what the dentist recommended and why.

Record-keeping takes on new importance after divorce. If you are paying orreceiving child support, keep a record of all payments you made or received. Keeprecords of what each of you spends on the children. These records are useful as youbudget and plan and if you consider child support changes. They help both of you

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Do not send messagesthrough children,relatives, or mutualfriends.

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better understand the child’s financial needs.

Name changeIf you choose to change your name when you divorce, for example, resuming the

use of your maiden name, you should notify the Social Security Administration(SSA) You do not, however, need to notify the Internal Revenue Service (IRS) ofa name change. The IRS verifies the name used on a tax return with the records ofthe SSA. If you file a tax return with a name other than the name on record with theSSA, a delay will occur in processing your return and mailing your tax refund.

Prenuptial AgreementsIf part of your new financial life involves plans for remarriage, you may want to

consider a prenuptial agreement to ensure that the assets you now own as yourseparate property and any income produced by those assets remain your separateproperty. A prenuptial agreement can also help to ensure that your property will passto your children when it is part of a well-planned estate. You can also specify howthe property acquired during your new marriage will be treated — that is, whetheryou and your new spouse will share future property or whether you will own yourproperty separately. When entering into such an agreement you and your new spousemust act fairly toward each other for the agreement to be enforceable. You and yournew spouse must disclose the full extent and value of all assets. Your agreementshould also be signed and acknowledged. If real property is involved, your agree-ment or a memorandum of your agreement should be filed in the real estate recordsof each county in which you own property.

When entering intoa prenuptualagreement you andyour new spousemust act fairlytoward each other forthe agreement to beenforceable.You and your newspouse must disclosethe full extent andvalue of all assets.Your agreementshould also be signedand acknowledged.

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Worksheet 1: Estimated Proceeds from Sale of House.

Estimated Sales Price $_______________ (a)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Selling Expenses

Amount required to pay off loan(s) in full _______________

Fix-up costs connected with sale(paint, minor repairs, etc.) _______________

Realtor’s commission (often 6% of Sales Price) _______________

Seller’s portion of closing costs(often 1% of Sales Price) _______________

Other sales costs _______________

Total Selling Expenses _______________ (b)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Estimated proceeds from sale (a minus b) _______________

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Worksheet 2: Estimated Cost of Staying in the Family Home.

Monthly mortgage payment $ _______________

Monthly insurance payment* _______________

Monthly property tax payment* _______________

Electricity, gas, heating oil _______________

Water and sewer charges _______________

Garbage pickup _______________

Maintenance and repair _______________

Yardwork _______________

Homeowner fee, association fee _______________

Other _______________

TOTAL monthly cost $ _______________

*These may be included in the mortgage payment. If not, divide the yearly expense by 12 to arrive atthe monthly cost.

Worksheet 3: Estimated Cost of Renting.

Monthly costs

Rent $ _______________

Electricity, gas, heating oil _______________

Water and sewer charges _______________

Garbage pickup _______________

Yardwork, if it is the renter’s responsibility _______________

Other _______________

TOTAL monthly costs $ _______________

One-time costs

Moving $ _______________

Deposits (security, cleaning, pet, key) _______________

Utility hookups and deposits _______________

Other _______________

TOTAL one-time costs $ _______________

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Worksheet 5: Summary of Debts (Include all debts, credit card amounts, backtaxes, student loans, etc.).

Balance Minimum Date at whichCreditor’s owed monthly total debt will Comments (Was the loan secured? If so,name today payment be paid by what? Who signed the loan agreement?)

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Worksheet 6: Summary of Proposed Property Division.*

COMMUNITY PROPERTY ASSETS:

Fair market Allocated to Allocated toDescribe item value the wife the husband

1. __________________________ $ ___________ $___________ $___________

2. __________________________ ___________ ___________ ___________

3. __________________________ ___________ ___________ ___________

4. __________________________ ___________ ___________ ___________

5. __________________________ ___________ ___________ ___________

6. __________________________ ___________ ___________ ___________

TOTAL $ $ $

DEBTS INCURRED DURING MARRIAGE:

Amount Allocated to Allocated toDescribe debt owed the wife the husband

1. __________________________ $___________ $___________ $___________

2. __________________________ ___________ ___________ ___________

3. __________________________ ___________ ___________ ___________

4. __________________________ ___________ ___________ ___________

5. __________________________ ___________ ___________ ___________

6. __________________________ ___________ ___________ ___________

TOTAL $ $ $

Total ASSETS $

minus Total DEBTS $

equals TOTAL NET WORTH $

*Remember each spouse usually is entitled to one-half of the net worth. If the division of the propertyreached on this worksheet is not what the coupledesires, the couple may either reconsider whogets what property or adjust the allocation byhaving one spouse make a payment to the other.If cash is not available, the payment may be paidin installments over time. Look to Table 1 on page13 for an example of this type of a division.

Completed Sample Worksheet 6: Summary of Proposed Property Division.*

COMMUNITY PROPERTY ASSETS:

Fair market Allocated to Allocated toDescribe item value the wife the husband

1. __________________________ $ ___________ $___________ $___________

2. __________________________ ___________ ___________ ___________

3. __________________________ ___________ ___________ ___________

4. __________________________ ___________ ___________ ___________

5. __________________________ ___________ ___________ ___________

6. __________________________ ___________ ___________ ___________

TOTAL $ $ $

DEBTS INCURRED DURING MARRIAGE:

Amount Allocated to Allocated toDescribe debt owed the wife the husband

1. __________________________ $___________ $___________ $___________

2. __________________________ ___________ ___________ ___________

3. __________________________ ___________ ___________ ___________

4. __________________________ ___________ ___________ ___________

5. __________________________ ___________ ___________ ___________

6. __________________________ ___________ ___________ ___________

TOTAL $ $ $

Total ASSETS $

minus Total DEBTS $

equals TOTAL NET WORTH $

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*Remember each spouse usually is entitled to one-half of the net worth. If the division of the propertyreached on this worksheet is not what the coupledesires, the couple may either reconsider whogets what property or adjust the allocation byhaving one spouse make a payment to the other.If cash is not available, the payment may be paidin installments over time. Look to Table 1 on page13 for an example of this type of a division.

Worksheet 7: Monthly Financial Needs of Children.*

Cost for Cost forItem** family children*** Comments

Food at home

Food away from home

Clothing (purchase, repair, upkeep)

Household operation (utilities, furnishings,repairs, equipment)

Medical care (medical, dental, and eye care;doctors; hospital; drugs)

Medical/dental insurance****

Education (tuition, fees, special lessons,summer camp)

Transportation

Personal (haircuts, allowances, recreation)

Child care (babysitter, preschool, day care)

Other

TOTALS

* If expenses do not occur routinely each month, divide the yearly cost by 12 to get an average costper month.

** If you have items that are not in this list, add them.

*** If children will live in 2 households, include costs for both households.

**** If insurance is included as an expense, the parent paying the premium receives credit for theamount of the premium.

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Note: This is an example of a document used in an Idaho court. Actual copies can be obtainedfrom your local Clerk of the Court’s office.

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Worksheet 8: Child Support Obligation

IN THE DISTRICT COURT OF THE ______________ JUDICIAL DISTRICT OFTHE STATE OF IDAHO, IN AND FOR THE COUNTY OF _____________

_______________________, Plaintiff. ) CASE NO.:_________)

vs. )) STANDARD CUSTODY CHILD

_______________________, Defendant ) SUPPORT WORKSHEET

Children Date of Birth Children Date of Birth____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Plaintiff Defendant Combined1. MONTHLY I.C.G.S. INCOME (from Affidavit) $ $ $

2. PERCENTAGE SHARE OF INCOME % %(Each parent’s income on line 1 divided byCombined Income)

3. BASIC CHILD SUPPORT OBLIGATION $(Multiply line 2 times line 3 for each parent)

4. EACH PARENTS CHILD SUPPORT $ $OBLIGATION (Multiply line 2 times line3 for each parent)

5. RECOMMENDED CHILD $SUPPORT ORDER (Bringdown the amount fromline 4 for the non-custodialparent)

OTHER COSTS TO BE CONSIDERED BY THE COURT:a. Work-Related Child Care Cost + _______________b. Health insurance premiums and uninsured health care expenses + _______________c. Tax benefit for dependency exemptions + _______________

Comments, calculations, or rebuttals.

PREPARED BY: DATE:

Note: This is an example of a document used in an Idaho court. Actual copies can be obtainedfrom your local Clerk of the Court’s office.

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Worksheet 9: Child Support Obligation Shared Physical Custody

IN THE DISTRICT COURT OF THE ______________ JUDICIAL DISTRICT OFTHE STATE OF IDAHO, IN AND FOR THE COUNTY OF ___________

_______________________, Plaintiff. ) CASE NO.:_________vs. ) STANDARD CUSTODY CHILD_______________________, Defendant ) SUPPORT WORKSHEET

Children Date of Birth Children Date of Birth________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

CHILD 1 CHILD 2 CHILD 3Plaintiff Defendant Plaintiff Defendant Plaintiff Defendant

Plaintiff Defendant Combined1. MONTHLY I.C.G.S. INCOME (from Affidavit) $ $ $

2. PERCENTAGE SHARE OF INCOME % %(Each parent’s income on line 1 divided byCombined Income)

3. BASIC CHILD SUPPORT OBLIGATION $a.Apply line 1 Combined to Child Support

Scheduleb.(Multiply line 3a by 14 (Sections 10d and 10f) $

4. EACH PARENTS CHILD SUPPORT $ $OBLIGATION (Multiply line 2 times line3 for each parent)

5. OBLIGATION ALLOCATION $ $(Line 4 divided by the number of children)

6. PARENTS PERCENTAGE % % % % % %OBLIGATION (Number of overnightswith other parent divided by 365)If greater than 65% enter 100%, if lessthan 35% enter 0%.

7. PARENTS OBLIGATION $ $ $ $ $ $(Line 5a line 6 for each child)

8. TOTAL CHILD SUPPORT $ $PER PARENT (Total of amountsfor each parent)

9. RECOMMENDED CHILD $ $SUPPORT ORDER (Subtract lesseramount from greater amount on line 8and place result under greater amount)

PREPARED BY: DATE:

OTHER COSTS TO BE CONSIDERED BY THE COURT:a. Work-Related Child Care Cost +_______________b. Health insurance premiums and uninsured health care expenses+_______________

Comments, calculations, or rebuttals.

For example, if child 1 lives with defendant 80% of the time, “80%” goes under “plaintiff” for child 1.

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Worksheet 10: Summary of income of husband and wife

Income Husband Wife

Earning ability at time of marriage $ $

Present earning ability and annual income from $ $property and investments

Earning ability and income in 5 or 10 years $ $

Income from pensions, Social Security, and $ $investments after retirement age

Comments:

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Worksheet 11: Projected Income-Expense Statement.

IncomeSalaries (before deductions) $__________ $_________Commissions, tips, bonuses __________ _________Investment income

Interest (taxable) __________ _________Interest (nontaxable) __________ _________Dividends __________ _________Profit from rental property __________ _________Profit from sale of assets __________ _________Other investment income __________ _________Alimony/child support __________ _________Cash gifts __________ _________Other income __________ _________

Total income $__________ $_________

ExpensesTaxes

Federal income $__________ $_________Social Security __________ _________State income __________ _________Property __________ _________Other __________ _________

HousingRent or mortgage __________ _________Utilities __________ _________Property and other insurance __________ _________Furniture and other durables __________ _________Household maintenance __________ _________Other real estate payments __________ _________

TransportationCar payment __________ _________Gas, repairs, tires __________ _________Insurance, licenses __________ _________

Food __________ _________Clothing, clothing care __________ _________Recreation, hobbies __________ _________Personal care __________ _________

Health careServices and medication __________ _________Health insurance __________ _________

Education, publications __________ _________Life and disability insurance __________ _________

LiabilitiesBank loans __________ _________Charge accounts __________ _________Charge cards __________ _________Other __________ _________

SavingsSavings account __________ _________Investments __________ _________Pension contributions __________ _________

Payments to othersChild care __________ _________Family allowances __________ _________Charitable gifts __________ _________Gift __________ _________Child support/alimony __________ _________

Business/professional __________ _________

TOTAL EXPENSES $__________ $_________

Summary

Total income $__________ $_________Less total expenses __________ _________Difference $__________ $_________

Notes

For the periodfrom______________, year______to________________, year______

Husband Wife Husband Wife

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Glossaryactuary — a person skilled in calculating the value of life interests, annuities, and

insurance.alimony — see maintenance in this glossary.assets — money, property, and money-related rights owned by a person; property

of all kinds — real and personal, tangible and intangible.community property — property acquired by either spouse during the marriage

including rents and profits of separate property, with the exception that anyproperty acquired by one spouse by gift, will, or inheritance is that spouse’sseparate property.

custody — may refer to legal or physical custody of children. Legal custody andphysical custody are different.

Legal custody refers to the decision-making authority with respectto the child. The parent with legal custody has the right to makemajor life decisions for the child — decisions about religion,education, discipline, and medical care. Sole legal custody iswhen one parent has this decision-making authority. Joint legalcustody is when both parents share the decision-making author-ity. Idaho courts favor joint legal custody unless strong evidenceshows that a parent should be deprived of such custody. Strongevidence might include evidence of drug or alcohol addiction orchild abuse.

Physical custody refers to the parent with whom the child lives. Oneparent may have physical custody and the other parent visitationrights. That is, the child lives primarily with one parent andspends certain, usually specified times (such as vacations andspecified holidays), with the other parent. Or physical custodymay be shared: the child lives at both parents’ homes.

Split custody indicates there is more than one joint child and at leastone child lives with each parent.

dissolution — commonly referred to as divorce, the legal act of terminating amarriage.

divorce decree — restores the spouses to the status of unmarried persons. The decreemay include provisions regarding property division, spousal and child support,and child custody.

earnest money agreement — a deposit paid by a buyer to commit a seller to a dealand to show the buyer’s good faith; an assurance that the buyer is in earnest andgood faith.

estate plan — arrangement for the disposition of one’s property after death.fair market value — price at which a buyer, who is a stranger to the seller, will buy

property at.gross income — income from any source including, but not limited to, salaries,

wages, commissions, bonuses, dividends, severance pay, pensions, interest, trustincome, annuities, Social Security and veteran’s benefits, welfare payments,judgments, gifts, student loans, and in-kind payments (such as the value of acompany car or free housing, room and board).

gross potential income — amount of income set by a court for a person who isvoluntarily unemployed or underemployed. For example, a person who voluntar-ily quit his or her job to go back to school would fall in this category.

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group life insurance — a form of insurance whereby individual lives of a group ofpersons, usually employees, are covered by a single or blanket policy; suchinsurance is renewable on a year-to-year basis and does not accumulate a cashvalue (that is, no cash surrender value is built up).

lien — an interest in real or personal property given to a creditor to secure anobligation. This interest gives the creditor the right to take the property throughcourt action to satisfy the debt.

maintenance — payments made under a court order or court-approved agreementof the parties by one spouse to the other spouse to provide support; also calledalimony or spousal support.

market value — the amount of money a buyer who is a stranger to you would pay.mortgage or deed of trust — a lien on real property voluntarily given by the debtor

to the creditor.noncustodial parent — the parent without physical custody of the child or children

but who usually has visitation rights.property settlement agreement (also called property agreement) — a written

contract between divorcing spouses that lists and divides the property andfinancial obligations. It may also include plans for custody, child support, andspousal support.

real property — land and things attached to the land, such as building, fences, andplant material growing on the land.

replacement value — the cost of replacing the property with similar property.security interest — a lien on personal property voluntarily given by the debtor to

the creditor.separate property — property acquired by assets you or your spouse owned before

you were married, or property acquired by you or your spouse as a result of a giftto one of you or through inheritance.

term life insurance — a form of insurance that promises payment only within thespecified term covered by the policy, though such policies are commonly renewedeach term. Term policies have no cash surrender value.

valuation — the act of determining the estimated monetary worth of something.whole life insurance (sometimes called straight life insurance) — insurance for

which premiums are collected as long as the insured person lives. Whole lifepolicies build up cash value.

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◆ ◆ ◆Additional resources

What to do When Your Income Drops CIS 1049, University of Idaho CooperativeExtension System publication. Contact your local county Extension office orUniversity of Idaho Ag Publications, Moscow, ID 83844-2332, phone (208)885-7985, http://info.ag.uidaho.edu/catinfo.html

Coming to Grips with Your Finances (five-part series on sound money manage-ment), University of Idaho Cooperative Extension System publication. Contact yourlocal county Extension office or University of Idaho Ag Publications, Moscow, ID83844-2332, phone (208)885-7985, http://info.ag.uidaho.edu/catinfo.html

Women and Laws in Idaho is a 64-page resource handbook published by theIdaho Women’s Commission. Contact the Women’s Commission at P.O. Box83720, Boise, ID 83720-0036, phone (208)334-4673 or toll-free 1-800-643-7798.

For help in locating an attorney, call the Idaho State Bar lawyer referral service,phone (208)334-4500.

To find the Consumer Credit Counseling Service in your area call 1-800-388-2227 (1-800-388-CCCS).

You can obtain free help from Internal Revenue Service (IRS) operators duringregular weekday business hours by calling 1-800-829-1040. Federal tax publicationscan be obtained by calling 1-800-829-3678 or downloading from the internet athttp://www.ustreas.gov.

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About the authorsElizabeth Brandt is professor of law, University of Idaho College of Law,

Moscow. Linda Kirk Fox is professor and an Extension family economics specialist,UI School of Family and Consumer Sciences, Moscow. Kathleen Hardcastle is aformer member of the Idaho Women’s Commission and an attorney in privatepractice, Moscow.

AcknowledgmentsThe authors gratefully ackowledge Alice Mills Morrow, CFP, J.D., Extension

family economics specialist at Oregon State University, for permission to adapt thepublication Making Financial Decisions When Divorce Occurs: An Oregon Guide.

Appreciation is also extended to the following individuals who served asreviewers and/or contributors to this publication:

Carol Anderson, research assistant, University of Idaho.Vicki Cade, research assistant, University of Idaho.Ann Cosho, attorney at law, Boise, Idaho.Susan Graham, attorney at law, Boise, Idaho.Virginia Junk, associate professor, University of Idaho.Hon. William C. Hamlett, magistrate, Moscow, Idaho.Edith Miller Klein, attorney at law, Boise, Idaho.Jack Miller, Dean, College of Law, University of Idaho.Phyllis Ann Miller, member of Commission on Women’s Programs,

Pocatello, Idaho.Marilyn Cross Bischoff, University of Idaho Extension educator,

Ada County.Sheldon Vincenti, College of Law, University of Idaho.

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Issued in furtherance of cooperative extension work in agriculture and home economics, Acts of May 8 and June 30, 1914, in cooperation withthe U.S. Department of Agriculture, LeRoy D. Luft, Director of Cooperative Extension System, University of Idaho, Moscow, Idaho 83844.The University of Idaho provides equal opportunity in education and employment on the basis of race, color, religion, national origin, age,

gender, disability, or status as a Vietnam-era veteran, as required by state and federal laws.3M,1-92, 4.5M 6-92, (reprint), 3M 11-97 revised Bul 733-Produced by Ag Communications $3.00

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