Published April 21, 2020 • Family Law
The CARES Act stimulus payments created unique complications for spouses navigating separation or divorce proceedings. Understanding how the IRS distributes these payments and how they factor into marital asset division is critical for protecting your financial interests.
The IRS bases disbursement on the most recently filed tax return. Couples filing jointly receive one payment, while those filing separately get two. Those who haven’t yet submitted returns are classified by 2018 filings.
Individual filers earning over $75,000 see reduced amounts, with complete phase-out above $99,000. Married couples receive $2,400 until combined income reaches $150,000, phasing out entirely at $198,000. Children aged 17 and under generate $500 rebates.
Direct deposit occurs when the IRS has banking information on file; otherwise checks are mailed. This creates complications for separated spouses who no longer share financial accounts, as stimulus payments constitute marital assets subject to division.
Stimulus payments should be included in marital asset distribution discussions. When spouses are separated but filed jointly, the full payment may be deposited into one spouse’s account. This does not mean that spouse is entitled to the entire amount. An experienced family law attorney can provide guidance on how federal relief funds factor into divorce settlements.
If you are navigating a divorce or separation and have questions about how stimulus payments or other marital assets should be divided, contact Larmour Law Offices, PSC. Call 859-813-5614 or contact us online to schedule your consultation.