A Florida parent voluntarily pays child support to the other parent, but there is no court order for child support. Can the parent claim the child support payment as an expense when preparing his bankruptcy schedules?
A Florida parent voluntarily pays child support to the other parent, but there is no court order for child support. Can the parent claim the child support payment as an expense when preparing his bankruptcy schedules?
Yes, he can claim the amount as an expense -- but should be prepared to document that the payments are actually being made, and that they are reasonable in amount (i.e., in the vicinity of what the child support formula would require to be paid). If the amounts are excessive, it becomes more likely that the payments will be seen as an attempt to defraud creditors or regarded as a gift instead of an expense.