capital gain and child support

[tazdevilcutie]

My husband divorced his 1st wife about three years ago. As part of the divorce he was allowed to keep interest on the marital home, by refinancing it (removing her name) and he currently pays alimony and child support for his two kids that currently reside with her. As part of the decree as well- he had to take on about 100% of all debts incurred while they were married (in order to keep the house). She remarried about two years ago, and he married me about 1 year ago- and we have since refinanced the home again, this time adding me to the mortgage and to the title.

My question is we were thinking of selling the home soon, to move into a bigger home to accomodate our additional children that we have (plan to have too)...because we have run out of room. We have significant gains on our home--which would mostly go immediately towards being able to afford the bigger home...but it doesnt exceed the $500K that married people are allowed to keep under the IRS standards....

My question is- the guidelines say "capital gains" are considered an income under the guidelines for support.....my husband is afraid if we sell-she will have access to that money??

It doesnt seem fair that this would fall under that category- since A) Some of that income is mine- now that I own the house...and B) We are using the proceeds to purchase another home due to our family being larger than the one he had with her........would we have to refi to take out the equity, and then sell the home? Or will the court not count it due to the reason for moving??

Am I right- or is he right?

By the way we live in VA.....

[Kidssew]

I would think that once her name came off the deed & she no longer is his wife to be entiltled to community property, she has no further claim on the house.  It's kind of like selling to a stranger & going back to try to collect part of any gain he would have when sold it down the road.

[livealittle]

It's my understanding that alimony stops when the recipient remarries.

so....your husband should not be paying alimony to an ex-wife who has remarried.

[m_t]

It's my understanding that alimony stops when the recipient remarries.

so....your husband should not be paying alimony to an ex-wife who has remarried.

Not necessarily.

[Lee Borden]

I can't speak for VA law, but in most states an isolated gain on the sale of real property, especially gain that's immediately re-invested in a home, wouldn't be income for purposes of child support. To the extent the court determines that property is held for investment, however, the investment income is typically considered income.