Legal FAQ

No. Child support payments are not taxable income for the parent who receives them, and they are not tax-deductible for the parent who pays them. This applies in all 50 states.

Yes. Either parent can request a modification when there has been a substantial change in circumstances — such as a significant change in income, job loss, or a change in the custody arrangement. Most states require at least a 15–20% change in the calculated amount before a court will modify an existing order.

Non-payment can result in wage garnishment, seizure of tax refunds, suspension of driver's license or professional licenses, contempt of court charges, and in serious cases, jail time. The consequences are serious and enforced aggressively in most states.

In most states, child support ends when the child turns 18 or graduates from high school, whichever comes later. Some states extend support through college. Support for children with disabilities may continue indefinitely.

It depends on the state. Some states reduce or eliminate support with equal custody. Others, like Texas, base support almost entirely on the paying parent's income regardless of custody time. Use our calculator to estimate the amount for your specific state.

For divorces finalized after December 31, 2018, alimony is no longer deductible for the payer and is not taxable income for the recipient under federal law. For divorces finalized before 2019, the old rules still apply — payer deducts, recipient pays taxes.

It depends on the state and the length of the marriage. Short marriages typically produce shorter alimony periods. In Florida, the maximum duration is now 75% of the marriage length for long marriages. In California, long marriages can produce longer or even indefinite support. Many states use formulas tied to marriage length.

Generally yes, if there is a substantial change in circumstances such as job loss, remarriage of the recipient, or significant income change. Some types of alimony are non-modifiable once ordered — this depends on the state and the specific terms of your divorce agreement.

In many states, cohabitation with a romantic partner is grounds to reduce or terminate alimony. It does not happen automatically — the paying spouse must petition the court and prove the cohabitation. The rules vary significantly by state.

Your case is permanently barred. Even if you have strong evidence and a clear-cut claim, the court will dismiss it if filed after the deadline. There are very limited exceptions for fraud, concealment, or minority.

Usually on the date of the injury, breach, or incident. However, many states use the "discovery rule" — the clock starts when you discovered or reasonably should have discovered the harm. This is especially important in medical malpractice and fraud cases.

Yes. Most consumer debts have a statute of limitations of 3–6 years depending on the state and type of debt. After it expires, creditors cannot sue you to collect. However, the debt still exists and unpaid debts can still affect your credit score.

No. The statute of limitations is generally "tolled" (paused) during minority. Once the minor turns 18, the clock starts running and they have the standard period to file.

No. Federal law does not require employers to pay severance. Most professional employers offer it anyway to get employees to sign a release of legal claims. If you have a written employment contract that promises severance, it becomes a contractual obligation.

Yes. Severance pay is fully taxable as ordinary income. Your employer will withhold federal income tax, Social Security, and Medicare taxes. In some cases, a large lump sum severance payment can push you into a higher tax bracket for that year.

It depends on your state. Some states offset unemployment benefits dollar-for-dollar against severance. Others allow you to collect both. Check your state's unemployment agency rules before making any financial decisions.

If you are 40 or older, federal law (OWBPA) requires employers to give you at least 21 days to consider the agreement and 7 days to revoke after signing. If you are under 40, there is no federal requirement, but most employers give at least a few days.

It depends on the state. Many states prohibit attorneys in small claims court entirely. Others allow them but the court is designed for self-representation. Even where attorneys are allowed, most people represent themselves because the cost of an attorney would exceed the amount being disputed.

It varies by state. California allows up to $12,500 for individuals. Texas allows up to $20,000. New York City caps it at $10,000. Use our Small Claims Limit calculator to find the exact limit for your state.

From filing to hearing typically takes 30–70 days depending on the court's schedule. Simple cases are often decided the same day as the hearing. If the judge takes the case "under advisement," you may wait another few weeks for a written decision.

If the defendant was properly served and does not appear, the judge will typically enter a default judgment in your favor. You still need to present your evidence — do not assume winning is automatic just because they did not show up.

Federal law limits garnishment to the lesser of 25% of your disposable income or the amount by which your disposable income exceeds 30 times the federal minimum wage ($7.25/hr). Child support and tax debts have higher limits — up to 50–65% for child support.

You can challenge a garnishment if it was improperly obtained, if the debt is not yours, or if you qualify for a hardship exemption. Filing for bankruptcy can also stop most garnishments immediately through the automatic stay. Some states have additional protections.

Until the debt is paid in full, you reach a settlement with the creditor, a court stops it, or you file for bankruptcy. For child support garnishments, it continues until the support obligation ends.