The No Obligation to Report Income Until Review provision outlines whether parties are required to disclose income changes before the scheduled spousal support review. Additionally, it considers the Reporting Income Level, which sets a threshold for when income changes must be reported if they exceed a certain amount. This provision ensures transparency and fairness while allowing flexibility in managing income disclosures.
No (Default):
Definition: Selecting No means that both parties are required to report income changes as they occur, without waiting for the next scheduled review. This ensures that income changes are communicated in real time, allowing both parties to address any significant changes that may impact spousal support.
When to Use: This option is ideal when both parties agree that transparency is crucial and wish to be informed about income changes immediately. It is especially important when one or both parties have variable incomes or expect significant fluctuations.
Example: If the recipient starts earning more from a new job or the payor receives a significant raise, they are obligated to report this change right away.
Benefits: Promotes fairness and transparency by ensuring that income changes are addressed in real time. Both parties can discuss and potentially adjust spousal support based on the updated financial information, preventing misunderstandings or surprises during the formal review.
Yes:
Definition: Selecting Yes means that income changes will only be reported at the scheduled spousal support review. No obligation exists to disclose changes before the review, unless the income change exceeds the Reporting Income Level.
When to Use: This option may be chosen when both parties prefer to manage financial updates during scheduled reviews rather than reporting every change in income immediately. This approach works well for parties with stable incomes or when income changes are minor.
Example: If the recipient receives a modest raise, they are not required to report it until the next scheduled review. However, if the raise exceeds the Reporting Income Level, they must report it before the review.
Benefits: Simplifies the financial arrangement by reducing the need for frequent disclosures. It works well when income changes are generally small and both parties prefer to address changes during formal reviews.
The Reporting Income Level sets a specific threshold at which income changes must be reported, even if the parties have opted to wait until the review period. This level provides clarity on when income changes are significant enough to warrant immediate disclosure.
Example: If the agreement sets a Reporting Income Level at $10,000, any increase in income above this amount must be reported immediately, even if the parties have selected Yes for no obligation to report until review. If the recipient’s income rises by more than $10,000, this change must be disclosed before the next review.
Benefits: Adding a Reporting Income Level ensures that significant changes in financial circumstances are disclosed in a timely manner, while allowing smaller or less impactful changes to be addressed at the review. It helps balance transparency with flexibility.
When to Choose No (Default):
When to Choose Yes:
The No Obligation to Report Income Until Review provision, combined with the Reporting Income Level, helps balance the need for transparency with the flexibility of managing income changes. Selecting No ensures real-time updates, while selecting Yes allows for scheduled reviews, with the Reporting Income Level ensuring that significant income changes are addressed promptly. This provides clarity, fairness, and flexibility in managing spousal support.