Today I would like to talk about variable costs when children are involved in a divorce.
As all parents know, the financial costs of raising children can be substantial. Divorced parents are expected to share variable costs.
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Variable costs can include health insurance co-pays, school supplies, lunch programs, fees to participate in sports or clubs, musical instruments and lessons, auto insurance, driver’s education fees and prom expenses, just to name a few.
How do you insure that variable costs are effectively dealt with by the parties after the divorce is final?
Well, the court issues an Order which should address variable costs. The parties are expected to comply with the Order, otherwise the violating party is subject to being held in contempt.
But if the other party fails to comply, it could get expensive to bring the other party to court to enforce the terms of variable costs.
Remember, a Court Order can only be amended or changed by a subsequent court order, or by mutual written consent of the parties, so you should consider the following before signing off on the final divorce papers when it comes to variable costs.
One big problem is that one former spouse may have trouble collecting money from the other former spouse, for their share that’s due for variable costs.
Most people assume that the other former spouse will follow through and pay their share of a cost by just asking. But, if there is animosity still lurking after the divorce, collecting for variable cost may be a way for the angry spouse to get even.
In many cases, the offending spouse, the one who fails to comply, knows that it’s not financially justified for the other spouse to summon them into court for their share of $75 or $100 for variable costs, so they just blow it off.
This is why the final Court Order of Divorce needs to be crafted in a way that mays repayment of variable costs orderly and specific.
You should make sure that the Court Order defines variable cost, state how the variable costs will be paid between the parties, and define the time frame for payment.
You can also insert language that requires the other spouse to obtain written consent from the other spouse before incurring a variable cost that the other party will be partially responsible for.
It’s a very good practice to keep accurate records of variable costs incurred and paid, evidence of your form of payment, and purchase receipts.