Son dropped out of school to join the Military, Child Support stops?

[army judge]

Ah, but the agreement was apparently made before the child was emancipated, and thus there was likely the option to pursue the court ordered child support at the time the agreement was made. Giving up that option in exchange for the agreement would constitute valid consideration.

The "agreement" might NOT be worth the paper on which it is written.

Many times these "agreements" are adjudicated to be nothing more than "gifts", despite the fact they were reduced to writing.

If that occurs, the person thinking he/she was paying child support, is found to be merely a generous donor of cash gifts.

It never ceases to amaze me why people persist in agreeing to things outside of the court, only to discover the only one that got cheated was the cheerful "giver".

These agreements sometimes attract the attention of the various tax authorities, as they violate the statutory limit on giving.

I believe the IRS gift limit for 2018 was $15,000.

The little schemes and scams we employ THINKING we are avoiding the gubmint bureaucracy usually don't end well for us.

If you give any one person gifts valued at more than $10,000 in a year, it is necessary to report the total gift to the Internal Revenue Service.

The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.

 

[Tax Counsel]

The "agreement" might NOT be worth the paper on which it is written.

Many times these "agreements" are adjudicated to be nothing more than "gifts", despite the fact they were reduced to writing.

What may happen is that if the custodial parent goes to court for court ordered child support the parent paying support per the agreement won't be successful in avoiding the court ordered child support by relying upon the agreement. Depending on the state and the agreement, the court may or may not give credit in the child support order for payments made under the agreement (perhaps by stating the payments were gifts for state law purposes or under some other rationale). So to that extent I agree that the agreement may not do what the person paying support will hope it does.

The agreement might nevertheless standing alone be a valid contract until such time that a child support order overrides it.

These agreements sometimes attract the attention of the various tax authorities, as they violate the statutory limit on giving.

If the payments were indeed meant as child support they are not gifts for federal tax law purposes, regardless of what a state family court may say is the effect under state law in a child support proceeding.

I believe the IRS gift limit for 2018 was $15,000.

Correct.

If you give any one person gifts valued at more than $10,000 in a year, it is necessary to report the total gift to the Internal Revenue Service.

That is not the case. For most people the gift amount they need to worry about for 2019 is $15,000 in gifts to any one person. The filing requirement tracks the annual gift tax exclusion amount.

The more technical explanation is that you need to file a federal gift tax return if you are a U.S. citizen or resident only if you have taxable gifts (i.e. gifts in excess of the gift tax annual exclusion). The total gifts if you give of a present interest in property to any one person up to the annual gift tax exclusion are not taxable gifts. So for 2018 and 2019 you may make up to $15,000 in gifts of present interests in property each person and not have to file a gift tax return. But should you make total gifts to any one person of more than $15,000 during the year, you will have to file a gift tax return.

You must also file a gift tax return if you make any gifts of a future interest in property regardless of the value of the gift.

A gift of a present interest is one in which the benefit of the property given may be enjoyed by the donee (person receiving the gift) immediately. The vast majority of gifts are gifts of present interest in property. A gift of a future interest in property occurs when the benefit of the property cannot be enjoyed by the donee until some future date in time, e.g. a gift to a trust in which the beneficiary must wait some period of time before being able to access the property in the trust.

 

[Zigner]

Ah, but the agreement was apparently made before the child was emancipated, and thus there was likely the option to pursue the court ordered child support at the time the agreement was made. Giving up that option in exchange for the agreement would constitute valid consideration.

That's a fair enough viewpoint.

 

[leslie82]

You are overlooking one thing: they have a mutual agreement to pay, which very likely means a contract to pay the support. So while the OP would not face any sanctions for violating a court order, he still could be required by the courts to pay as per the contract that he has to pay the support. A lot depends, of course, on the terms of that agreement.

That doesn't mean there's a contract. I have heard of plenty of people who made verbal agreement on child support. Not through the court. There's no way to prove a verbal agreement. Unless texts or emails.

He could stop paying now if he wanted.

 

[army judge]

That doesn't mean there's a contract. I have heard of plenty of people who made verbal agreement on child support. Not through the court. There's no way to prove a verbal agreement. Unless texts or emails.

He could stop paying now if he wanted.

I've seen many with so called privately written agreements get stiffed, too.

Its always best to take ALL child support, custody, and visitation matters to the appropriate court or state child enforcement agency.

 

[adjusterjack]

There's no way to prove a verbal agreement. Unless texts or emails.

There's more ways than texts and emails. There could be witnesses to the agreement and performance is often a key piece of evidence of a verbal agreement.

How far do you think he would get denying the agreement after years of paying as agreed? Answer: Not very.

He could stop paying now if he wanted.

He could but he would be foolish to do so since his obligation ends in a matter of weeks when his son reports for active duty.

 

[Tax Counsel]

That doesn't mean there's a contract. I have heard of plenty of people who made verbal agreement on child support. Not through the court. There's no way to prove a verbal agreement. Unless texts or emails.

He could stop paying now if he wanted.

We don't have all the details to know if there was a contract. But there certainly could be one. And if there is a contract then if he fails to pay as agreed he may be successfully sued for breach. Contrary to your assertion, it is not impossible to prove a verbal agreement. A lot depends on the available evidence and the assertions of the parties. Here, among other things, there is likely a record of payments that presumably matches the asserted contract, which would be pretty good evidence. And of course there is always the testimony of the person asserting the contract. Is it as easy as proving a written contract? No. But is it possible to prove a verbal contract? Yes, it certainly can be done. The case law is littered with such cases.

 

[leslie82]

We don't have all the details to know if there was a contract. But there certainly could be one. And if there is a contract then if he fails to pay as agreed he may be successfully sued for breach. Contrary to your assertion, it is not impossible to prove a verbal agreement. A lot depends on the available evidence and the assertions of the parties. Here, among other things, there is likely a record of payments that presumably matches the asserted contract, which would be pretty good evidence. And of course there is always the testimony of the person asserting the contract. Is it as easy as proving a written contract? No. But is it possible to prove a verbal contract? Yes, it certainly can be done. The case law is littered with such cases.

I said "unless..." never said impossible.

 

[Tax Counsel]

I said "unless..." never said impossible.

But even then, texts and e-mails are not the only way to prove verbal contracts.