Tuesday, June 12, 2012

Can a traditional yearly gift from grandparents be used in calculating child support?


In the case of Palumbo v. Butler, 26 So.3d 723 (Fla. 2nd DCA 2010), the appellate court ruled that is was :
ERROR TO INCLUDE IN HUSBAND'S INCOME FOR PURPOSE OF CALCULATING CHILD SUPPORT, ANTICIPATED ANNUAL FINANCIAL GIFTS WHICH HUSBAND'S MOTHER HAD HISTORICALLY MADE TO MINOR CHILDREN FOR THEIR EDUCATION. 
The trial judge added $22,000 per year to the husband's income to calculate his child support obligation. The court reasoned that these gifts were regular and would continue. The District Court reversed: 
1. "[The husband]…does not control his mother's largesse. His mother testified that she anticipated making future gifts, depending on the economy, her health, and her family needs."
2. "In past years, she gave the children's money directly to [the husband], earmarking it for school tuition. But, well before the final hearing, she began paying the school directly."
3. "On the record before us, [the wife] properly concedes that the anticipated gifts should not have been included with Mr. Butler's income." 
            The reasoning for this is that grandparents can change their mind at any time regarding their gifts.  They could have a financial emergency, medical emergency, or simply decide to spend some of their own money.  The parent paying child support would be caught in a "trap" requiring him to pay support from income he doesn't receive.  Hopefully, grandparents will help pay for schooling, but that is a personal choice that the courts can't get involved it.  If every case was micromanaged, the courts could not function in a efficient manner.

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