In Wisconsin, there are three different types of support that may be ordered in a divorce. Like other states, Wisconsin provides for child support and spousal maintenance payments. Unlike many other states, however, Wisconsin law also allows for a third, hybrid type of support called family support.
Family support is a hybrid type of support covering both child support and spousal maintenance components. Unlike child support, which is not deductible by the payor or taxed to the recipient, the payor is able to deduct family support payments. Recipients of family support are also taxed on the payments they receive on their income tax returns.
When someone is in arrears in owed family support, they are assessed interest on the arrears amount at a rate of 1 percent per month on the amount that is equal to or greater than any child support amount that is owed. The amount of interest will continue to accrue until the delinquent amount is paid.
Some people in Wisconsin may benefit by reaching a settlement agreement in which they agree to designate combined child support and maintenance payments together as family support. In some situations, such as when one spouse has significantly more income than the other, doing so may help the payor reduce his or her overall tax liability, allowing for more money to be dedicated to making support payments. In some cases, this can allow people to reduce the overall tax liabilities they may have, increasing the attractiveness of agreeing to family support payments. People who are interested in learning more about the availability of family support in lieu of potentially separate child support and maintenance awards may wish to consult with their family law attorney about designating expected support payments as family support.
Source: Wisconsin Legislature, “767.531 Family support. “, November 25, 2014
