Notwithstanding the train wreck that is Britney Spears these days, there has been a lot of criticism of Kevin Federline’s requests for child support and spousal support. Initially, K-Fed was receiving (according to TMZ.com) $15,000 per month in child support with joint custody, and an additional $20,000 per month in spousal support. The amount of spousal support was based on a prenuptial agreement and was slated to end in November.
Of course, that was all before the VMAs on MTV. Before the car crashes. Before the reports of cocaine abuse. And, of course, before a judge ruled that “there is a habitual, frequent, and continuous use of controlled substances and alcohol by (Britney)”. If you believe the reports – and why wouldn’t you – Kevin Federline’s price for shutting up and moving on jumped a little higher.
And how does this affect Ms. Spears? Plenty. You see, alimony is tax deductible. Child support is tax neutral. If Britney has to pay more to Kevin Federline, it would actually be to her advantage from a tax perspective if the increase was classified as spousal support and not as child support or as a division of marital property. And judging from the likely demise of her recording and dancing career, it’s probably not the worst idea in the world to try and save some money where she can… Think I’m kidding? Did you see her performance on MTV?
