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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 01-12-2011, 02:25 PM
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Default Spousal adjusted due to debt load as debt is considered an exception in the guideline

quick synopsis
wife occupies house i pay mortgage, taxes, utilities, insurance
I pay all matrimonial debt approx 4000 a month
wife works one shift a month
seperated 18 months
marital debt far surpasses marital assets by 200,000, reckless spending my fault for not putting my foot down and leaving 20 years ago
married 25 years
daughter in last year of school i pay tuition and child support

would like to claim occupational rent for the time since seperation, also would like to claim she owes me for half the debt i have serviced since seperation
since i will assume most or all of debt 200 plus ,reduction in spousal due to debt exception
ex not interested in working or helping pay down debt
thoughts/ feedback would be appreciated
we have a motions court in a week, also will book settlement confernce right after motion
ex is using spousal rrsp to fund legal
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Old 01-12-2011, 06:31 PM
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Not sure and never mentioned in your synopsis, but it seems they may be entitled to spousal support. Long term marriage, need and means etc. The co-debts and liabilities should be split with respect to your net equalization.
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Old 01-13-2011, 12:28 AM
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yes she will be entitled to spousal, but debt is an exception in the guidelines
and this is a big debt which is marital so wondering how that will play into the amount i pay
she has a casual job and is not interested in working and not interested in helping pay off our debt, 3 kids university, excessive credit card use and on and on
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Old 01-13-2011, 05:08 AM
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How much do you earn?

The debt affects your ability to pay so I imagine that it will affect the quantum of SS, but due to your long marriage you are probably looking at an indefinite duration, maybe life.

What do you propose for SS quantum and duration?
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Old 01-13-2011, 10:28 AM
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grossed up income after business expenses is 180,000. before paying income tax of approx 60,000. she is still residing in the matrimonial home. i pay all expenses of the home. I am looking to receive occupational rent, not sure if this requires a motion, or is just written into the settlement offer.

all the case rulings involving the debt exception ruled lower than the low end of the guidelines. I would like to pay to 65 when I retire not sure if that is possible.
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Old 01-13-2011, 01:34 PM
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You didn't say for how long or how much you propose to pay.

Garbage input = garbage answer.

Jeez dude if you want decent advice it might be worthwhile answering the question thoughtfully.
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Old 01-13-2011, 01:36 PM
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If it helps. My ex and I have unsettled debt (he resides in matrimonial home and when I left I left him with the household contents as an offset for him paying out my half of the debt). Once we hit case conference, however, my Ex, after a year, has now decided that he doesn't want to pay my half of the debt AND doesn't want to equalize the household contents. Sigh.

Anyway, I have a temporary order for spousal support and in that order my spousal support was reduced by my half of the debt payment each month. This is temporary though, until we work out the other stuff, however, I do know its possible to have debt brought into consideration and spousal reduced to help with debt repayment.

I'm okay with that too, by the way, as long as he makes good on equalizing the household contents. Its fair but I wish he would have just done this last year when I could have moved more out of the house. Grrr.
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Old 01-13-2011, 02:17 PM
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I am 50 would like to pay till 65 but will pay the rest of my life. monthly income between 16000-18000 before income tax
marital debt payments 5000 a month will take 4 years to pay off by me, income tax 6000 a month,
leaves 7000 in my pocket, she has asked for 7500 for spousal .....
Most I could afford is 3000 which means I would take longer to pay the debt off
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Old 01-13-2011, 02:29 PM
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She wants $90K/year in SS???!!!! That's half of your pretax business income.

WHAT A JOKE!!!

On the other hand, the court is going to put your spouse's need ahead of your desire to pay off the debt relatively quickly.

And you're right about the long term commitment to SS. You might as well forget on terminating at retirement. That's just not going to happen. What you should be asking for is a reduction in the amount at retirement to reflect your (presumably) lower income.

I'm no expert in calculating NDI and 45% of income and all that, but I'm sure others can weigh in there.

What I would be proposing as well is a more realistic paydown period on the debt (say 10 years) that will allow you to pay more SS.

My guestimate is that you should go in around $4K/mth until you retire and include a provision either specifying a revised amount at retirement date or a revision based on retirement income when you retire.

Based on what you say, she's being completely unreasonable. You're proposal is also somewhat unreasonable. Be the reasonable guy, and you will settle more quickly.
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Old 01-13-2011, 03:11 PM
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If she is requesting that much of your income, she should be able to afford her share of the marital debt.

I would offer a few scenarios:

1. a number close to her s/s request, but that she take on 1/2 of the marital debt;

2. a number closer to 5k with a 1/4 of the marital debt; or

3. 2-3k a month with no debt.

Give options and appear to be negotiating in good faith and if you do end up in court, you have a much better chance of coming out with either a) just paying your own legal fees or b) if she is really unreasonable and you "win", she may have to pay your legal fees.

Edit - I would also fight to have her income imputed to at minimum fulltime minimum wage, but more likely fulltime at her current job (unless she has a disability which prevents her from working fulltime).
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