With the recent government decision to roll out stimulus checks for most adults and children, many are anticipating their arrival. However, those who married in 2019, filed a joint tax return, and later divorced, face a unique set of challenges. Especially, when the direct deposit goes to the account mentioned in the 2019 IRS return.
Stimulus Checks for Children: Who Gets It?
One significant question that arises pertains to the allocation of stimulus checks for children. Typically, the parent who claimed the child during their tax filing receives the payment. But, how should divorced parents split this amount?
How Divorced Couples Can Split Stimulus Checks
For those who filed jointly in 2019 but are now divorced, here are three potential solutions:
- Mutual Agreement: If you share a cordial relationship with your former spouse, you might consider dividing the funds amicably. Ensure you document this agreement and keep a record of funds received for future reference.
- Legal Mediation: Engage with your attorney to help mediate and reach a consensus regarding the fund’s division.
- Court Intervention: Consider seeking a court’s intervention. Notably, courts may view stimulus funds as marital assets. In this event, each partner receives an equal distribution. However, remember that court proceedings might incur costs potentially higher than the stimulus amount. It’s often more efficient to resolve this through mutual agreement.
Handling Child-Specific Stimulus Money
The individual who claims the children on their tax return should, in theory, receive the child-specific stimulus amount. In fact, good communication with your ex-spouse can ensure that funds are divided fairly and in the child’s best interest.
Navigating Stimulus Funds Amidst Pending Divorces
For couples in the process of divorcing, please note that you’re legally married until the finalization of the divorce. Therefore, the stimulus funds are a joint asset. The division should be part of your marital asset discussion. If you’re undergoing a Collaborative Divorce, consult with your attorney or financial specialist to determine the best way to allocate these funds. For all queries related to stimulus checks and divorce, reach out to Bruckner Hernandez Legal Solutions to book a consultation.
For legal guidance through the Illinois divorce process, contact the family law firm at Bruckner Hernandez Legal Solutions, LLC.