Maryland Divorce Lawyer Blog
In Maryland, when parents agree (or are ordered) to exchange tax returns to re-evaluate child support, here are a few important things to keep in mind:
1. When do we exchange documents?
Typically, returns are exchanged annually if they are part of an Agreement (or part of a Court Order), often by a set date.
TIP: Send a friendly reminder to your co-parent a few weeks before the deadline to stay on the same page.
2. What documents should be shared?
Check your Agreement or Court Order and gather the correct documents. Typically, the full federal return is needed, including schedules, W-2s, K-1s, 1099s, etc.
3. What should I look for?
After both parties submit all of the documents, be sure to check all sources of income such as self-employment, investment, rental income, or certain business expenses or “perks” of employment (like company cars, housing, etc.).
It may be helpful to have your own accountant or attorney look over the federal return to see if you are missing anything or to investigate something further. However, be mindful of any confidentiality agreement you may have entered regarding documents that could extend to an accountant or attorney.
Schedule C, E, and K-1s should be reviewed carefully in cases with business or investment income.
4. Did either person’s income materially increase or decrease?
If so, you may need to update your child support calculations to determine if a change in child support is warranted.
Consider if any extraordinary medical, school, or childcare expenses have changed as well.
5. If there should be an adjustment, is it automatic?
Not necessarily. Again, you need to review your Agreement and/or Court Order. You may need to involve your attorney, if both parties do not mutually agree, or your Agreement may have a mediation provision. In either case, if an agreement is reached the new amount must be reduced to a written Order to protect both sides.
6. What if my co-parent does not provide the tax returns?
If the Agreement or requirement is part of a Court Order, you may be able to enforce through a contempt or enforcement action.
For more information or questions about your specific circumstance, please contact Monica Scherer and the Silverman Thompson family law team at mscherer@silvermanthompson.com or toll-free at 800-385-2243.