Help calculating income

[mr.mom]

Hi,

My stbx was on disability for 2 years after a car accident. During disability, she was receiving $1975/ month from long term disability through work, and $900 biweekly for caregiver and housekeeping though car insurance. Is the money, (which is non taxable), from insurance company calculated into total annual income?

Also this may be a moot point. She made 45k prior to accident and is now back at work on par for 45k again. She wants tabled amount of cs from her line 150 of 25k from last years T4.

How does this work?

My take from reading the Federal Child Support Guidelines S.15 to S.21 is that either she is assessed at 45k because that was what she was able to make before disability (which was temporary) and is what she is making now that she is back full time (but she's only been back for about 2 months), or she takes the average of her past 3 T4's (but then I don't know if insurance money will be considered)

How far off am I?

Thanks in advance

[billm]

You are being more than fair.

She was making the T4 equivalent of over $56K while on disability. She should have to pay based that! Income is income and the CS tables are based on T4 equivalent, meaning one should calculate their equivalent T4 like income based on their after tax income, and use that for CS look up.

Its not a lottery or a game, the CS tables represent what one should pay based on their T4 equivalent income.

[mr.mom]

Well that is good news because I just got off the phone with her. She is putting in a motion on Monday to try and get support based on 25k, apparently a FLIC lawyer told her that the insurance money wont' count towards income. We agreed on a mediator earlier today but I guess she changed her mind.

[billm]

Its a simple question.

She made $45300 tax free, what CS should she pay - CS is based on ability and the tables are a guideline. The guideline says that if you make $56700K (after tax income of $45300) you pay XXX for # kids.

What's so difficult about that? In what way did her disability change her financial obligation to her kids? Did she have to spend all the money on herself for rehab?

People suck. I'm so sick of the crap that goes on this forum both by some posters, their exs, and the f'n intentionally stupid lawyers that couldn't care less about solving problems but create them instead.

[beebie]

Billm You are so right; but be careful about amounts paid in compensation for an injury suffered ...something about personal injury payouts are not income but compensation ....however disability payments are income, I think. Poster should check this distinction if applicable.

[mr.mom]

Good point beebie, it was a payment made to cover daycare and housekeeping. She had the choice of taking a percentage of her wage (80% i think) or caregiver and housekeeping. I think caregiver and housekeeping is there to cover stay at home parents who would need daycare due to the accident. My wife took that because she was being paid disability from work, and the caregiver allowance would boost up the amount of money we got because we weren't using it for daycare.I will have to call insurance and ask them what that is designated.

So if it is designated 'compensation' even if it is a regular biweekly payout, it can't be used to calculate income? We sure used it as income.

So then the next question. She is back to work full time. Do you still go by line 150 on last years T4, or does it go by the fact that she is now making 45k again. Keeping in mind, separation was near the end of her time off and no signed agreement for cs/ss has been reached yet.

I reference S.6.7 of the Spousal Support Guidelines.
6.7 Time for Determining Income
"...The with child support formula is not tied so tightly to living standards and incomes at separation, as ability to pay issues loom larger where both child and spousal support have to be paid. Under both formulas post-separation increases in the recipient's income are relevant given the obligation to pursue self-sufficiency. ..."

The way I read that is the fact she is now full time again, her current income, not line 150, should reflect the amount of child support and spousal support. Thoughts?

If she gets support based on line 150, her NDI will be about $4697/ month, while mine will be $3847, plus I will pay 75% of section 7 (and our kids' sports cost over $4000 per year).

[Rioe]

She is going to argue that last year's line 150 should be used because that benefits her the most.

You should argue that the annual salary listed on her most recent pay stub be used as the most reasonable approximation of her current income, and that it is not appropriate to use her line 150 because that amount does not accurately reflect her current situation.

This keeps it simple and doesn't get into complicated details about weird past income fluctuations and insurance settlements that people will have a hard time following.

Which argument do you think will look the most reasonable to a judge? Especially if you also agree to using your most recent pay stub as well (provided your income source is straightforward, of course). And then after next year tax time, you adjust annually based on line 150 for both of you.

Easy peasy.

[mr.mom]

Ok, so I called the insurance company today and they couldn't tell me if they considered it a supplemental income or compensation for personal injury. They did however say that it is an insurance benefit.

Anyone know if this is income or not?

I am not ignoring your post Roie, I think it makes sense, but I want to cover all my bases.

[beebie]

To me, this sounds like income and note that it has to be grossed up for tax as previous poster outlined.

Anyhow, let other party argue that it is not income.

The FCSG legislation states that income is calculated on the most current information available ; although this is often a drag and therefore most people use Line 150 from last year....it can be relevant where income has gone up or down recently. Ask for recent paystubs or letter from employer stating income to determine guideline income of party in question.