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  • Help with employer benefits!

    Quick rundown

    My ex is self employed and doesn't carry any benefits. I am employed and carry benefits for my kids and myself.

    I just found out that my son 12 needs braces. Now the benefits which I pay for every week cover $1500.00 lifetime per child.

    My question is this. My Ex seems to think that all expenses should be split proportionately by income once the $1500.00 from my benefits have been exhausted. My thought is I pay for the benefits bi-weekly and in doing so I should be the one to benefit from them. So I feel that the $1500 should be deducted from my proportional share.

    Anyone every come across this?

  • #2
    I don't know the "official" answer but your suggestion sounds reasonable to me ! By incurring the cost of benefits, you are in effect "providing" the $1500. It's possible many judges think the benefits are "free" so maybe if makes a difference whether the spouse is contributing to cost of benefits vs being "free" from employer ?

    Comment


    • #3
      This would presumably be a section 7 expense.

      Usually, the "uncovered by your insurance" portion of the expense, is split proportionally to incomes. You don't "exhaust" your benefits coverage first, unless the act of getting the braces itself, exhausts your coverage?

      No, you don't deduct your insurance coverage amount from the split first.

      Comment


      • #4
        Unfortunately I believe your ex is right... the amount split is after any benefits. That being said, the cost to have your kids on your benefits is a Section 7 and she should be paying a portion of those premiums according to income.

        It sucks, especially when you have to go through everything you do, but all Section 7 expenses are taken into consideration after any reimbursements, same as daycare and such.

        Comment


        • #5
          Yes, the amount would be split after any benefits are paid out. HOWEVER, I do also believe there are others who have successfully managed to have the insurance premiums shared as S.7 as well.

          Typically, benefits don't pay out 100% per session, it's about 50-80% for each visit, the remainder being up to you to pay. It could take up to a year to exhaust the coverage, in the meantime, she is on the hook to share the leftover cost from each visit.

          So you really have two issues here:

          1 - See if you can get the insurance premiums confirmed as a S.7 to be split.
          2 - Ensure she will pay her portion for each visit, not start paying after the $1500 coverage has been exhausted.

          Comment


          • #6
            Originally posted by blinkandimgone View Post
            ...HOWEVER, I do also believe there are others who have successfully managed to have the insurance premiums shared as S.7 as well...
            I really need to keep this in mind as I cover all the benefits costs for our kids, and most times, I'm fronting the whole cost of the uncovered as well. If I need to amend order, I will be sure to specify this, although, it's already covered technically;

            From the Ontario family law rules, and Section 7;

            (b) that portion of the medical and dental insurance premiums attributable to the child;
            (c) health-related expenses that exceed insurance reimbursement by at least $100 annually, including orthodontic treatment, professional counselling provided by a psychologist, social worker, psychiatrist or any other person, physiotherapy, occupational therapy, speech therapy, prescription drugs, hearing aids, glasses and contact lenses;

            So OP...your ex should be splitting as section 7, the health benefit/dental coverage costs.

            And of course, dental braces would be covered under point (c).

            Comment


            • #7
              Thank you for the replies...even though it wasn't what I was hoping for!!!

              I wonder how this will play out with the RESP's I have going for my kids then for post secondary education?

              This is an initiative I started on my own, and funded solely by me in order to help offset my costs when they go to university. So I hope to god that she will not benefit from this as well by having all the expenses split once the RESP's are taken into account. I want to use the RESP money so I don't have any out of pocket expenses for this when I am close to retirement.
              Last edited by cashcow4ex; 11-28-2013, 05:19 PM.

              Comment


              • #8
                Originally posted by cashcow4ex View Post
                ...I wonder how this will play out with the RESP's I have going for my kids then for post secondary education?

                This is an initiative I started on my own, and funded solely by me in order to help offset my costs when they go to university. So I hope to god that she will not benefit from this as well and that all expenses will be split once the RESP's are taken into account.
                When did you open these RESP(s), and who has contributed (before/after seperation)?

                If you funded the RESPs on your own, post seperation, they are considered your contribution towards school expense (RESP grant monies are considered the child's portion). You are allowed to save towards your portion of child's education costs. Don't let ex try to claim it.

                For contributions that happened when you were both together, often considered the child's portion. Same with loans/grants/gifts from grandparents, etc. Child's...not a "portion" attributed to one of parents.

                Comment


                • #9
                  It can probably go two ways.

                  A) Your ex should be paying her proportionate share of the carrying cost of the benefits all along. Then she also benefits from the benefits as it were. The proportional share would be after the $1500 is removed. She would have been paying for her share of that $1500.

                  B) Your ex did not pay for the carrying cost of the benefits, that was all you. So the $1500 should come out of your proportional share.

                  That said, perhaps you can negotiate that she retroactively and on an ongoing basis, pay her share of the cost of the benefits.

                  As for RESPs, there are huge threads here about this, and to be honest, it looks like they typically do come off the top before proportional shares are done. You may be better off using the RESP to get the grant money (which is part of your kid's share) and any extra money you would have invested, just put into a TFSA or something, so it can be considered only your share.

                  Comment


                  • #10
                    I started the RESP's for both my kids post separation and divorce. The ex has not contributed anything to them.

                    So if I understand correctly...lets say that his University costs are $100,000

                    minus grants, OSAP and the likes...say $20,000 (arguments sake)

                    Then that should be split 3 ways between her, myself and my son. From there I can make my contributions out of the RESP's? Or is the RESP portion that I have done get put towards my sons share?

                    Comment


                    • #11
                      Originally posted by cashcow4ex View Post
                      I started the RESP's for both my kids post separation and divorce. The ex has not contributed anything to them.

                      So if I understand correctly...lets say that his University costs are $100,000

                      minus grants, OSAP and the likes...say $20,000 (arguments sake)

                      Then that should be split 3 ways between her, myself and my son. From there I can make my contributions out of the RESP's? Or is the RESP portion that I have done get put towards my sons share?
                      How you pay your proportionate share is none of her business.

                      If you choose to pay it our of your RESP that's your choice.

                      Comment


                      • #12
                        Originally posted by FB_ View Post
                        How you pay your proportionate share is none of her business.

                        If you choose to pay it our of your RESP that's your choice.
                        Careful with that... there have been cases were RESPs come off the top, therefore are NOT the payers portion.

                        Comment


                        • #13
                          I believe that's because RESP's are typically held in the child's name, and not the parent. I could be wrong.

                          I was under the impression as well that RESP's come off the top first, then the remaining is split in thirds between the parent and the child.

                          Comment


                          • #14
                            I was told a very different thing by my lawyer.

                            I should find out before I start throwing money in it.

                            We equally divided the RESP at separation.

                            I opened a new one and so did she.

                            Comment


                            • #15
                              Originally posted by blinkandimgone View Post
                              I believe that's because RESP's are typically held in the child's name, and not the parent. I could be wrong.

                              I was under the impression as well that RESP's come off the top first, then the remaining is split in thirds between the parent and the child.
                              This is not true the account is in the parents name (Subscriber) with the kids named as beneficiary.

                              My account is a Family plan and clearly has my name on the statements.

                              Comment

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