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Old 09-04-2017, 10:48 PM
Desperate_Dad Desperate_Dad is offline
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You have given us very limited information but I will try to be of some assistance.

We know he receives 3,700 per month tax free from his private disability policy.

Does he receive any other income? CPP Disability? Childrens disability benefits?

Is he eligible for the disability tax credit?
How much do you make?

You should never offset child support with spousal support in a case like this. It's possible he is eligible for the disability tax credit and obviously also receives the personal exemption therefore he could have up to 20,000 of income he could write off without paying tax.

So imagine this scenario.

He pays you 1,000 child support.
You pay him 1,000 spousal support (tax deductible for you but taxable for him.
Even though its taxable for him, he can write it all off with his personal exemption and likely disability tax credit.
Then you write off the 1,000 and if you are in a 40% tax bracket, you get an extra 400 a month with no effect to him.

I'm thinking you'd like an extra 400 a month, yes?

Lawyers and judges no nothing about finance or how to structure a settlement to benefit both parties. And don't even get me started on what a garbage program Divorcemate is.

So bottom line is I need more information to help you but I've suggested some things for you to think about.
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