WHAT CAN I USE SPOUSAL SUPPORT FOR IN CALIFORNIA?
Spousal support is an important part of a divorce agreement. You won’t always get what you want when asking for this type of support but it never hurts to ask in the first place. These payments can be used for a myriad things in life, which is why you should know ahead of time what they are. So, what exactly can you use the spousal support payments you receive from your ex in California?
You should treat the payments as income. They shouldn’t be viewed as free money because they will eventually stop. That’s why you should include this money in any monthly budget you create. The first thing you should use these payments for is the monthly rent or mortgage, if you have one.
The next thing you need to do is begin paying down any debt you have to your name. This can be student loans, auto loans, credit card debt and unpaid medical bills. A creditor can still hold you responsible following a divorce for debt, which is why it’s smart to use these payments to tackle debt.
Keep all of your insurance policies active. This includes your health, auto, home, renter’s, umbrella and any other policies you might have in your name. Spousal support payments can be used to pay insurance policy premiums.
Consider opening 529 accounts for your children. These are savings accounts for minor children that can be used for education costs. Deposit some of the spousal support payments into these accounts for your children.
Once your divorce is final, you will likely begin receiving spousal support payments from your ex. It all depends on the agreement and if the court orders that support be paid to you in Orange, California.
Source: Findlaw, “Spousal Support (Alimony) Basics,” accessed June 13, 2018