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Would any one comment on a spouse accepting a one time payout for SS

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  • Would any one comment on a spouse accepting a one time payout for SS

    Notwithstanding the tax implications on both sides, I am just trying to have the least amount of financial contact.

    Can any comment on situation where spouse has offered to payout the complete SS upfront. i.e. i owe $20,000 of SS for 10 years = $200,000 and give my ex a cheque or property of equal value upon agreement (CS notwithstanding).

    I figure if I pay her SS in full now (perhaps discounted) with an signed agreement that she never ever revisit it will save a lot of financial headaches, going forward. Does any have experience with this option?

  • #2
    Don't be so sure about about the "never ever revisit" thing. There have been a few court cases, some fairly recently, where ex-spouses have come back for another piece of the pie YEARS later.

    It is generally believed that paying it off over the long run is better for the payor tax wise and to limit the other spouses ability to come back for more SS down the road. Just set firm deadlines for when it is done ie. drop dead date or if they should remarry/cohabitate.


    • #3
      Feeling a little morbid here, but if you do it monthly instead of lump sum, there's always the chance the ex will do just that (drop dead) and save you some money!


      • #4
        Don't do it. It can be revisited at any time in the future. Take the clear tax advantage of monthly payments. (always use a cash).

        When you research SS in this country, both the lower and Supreme court has made the matter completely murky( for this keeps everyone at the family court trough).

        The courts really don't endorse strict agreed time frames either ( but put it in your agreement anyway), they will endorse an agreed time frame to revalueate the situation.
        Good luck.

        P.S. never agree that you had any knowledge prior to marriage of "issues" with your ex partner that could preclude them from full employment.


        • #5
          Out of curriosity, why would it make a difference if he was aware of that prior to marriage?


          • #6
            Originally posted by blinkandimgone View Post
            Out of curriosity, why would it make a difference if he was aware of that prior to marriage?
            If the reason the spouse couldn't work was for a disability then you are on the hook for the rest of your life.


            • #7
              good poiint blinkandimgone, being aware or not makes no diference at all. What I so see is non disclosure of information that could change the "mind" of the other party to even enter into a contract in the first place. An example of this is a debt load, even a dramatic debt load while all relative to incomes but just say one party owes a huge amount of money. Kept this info to them selves and managed to keep it from the other party for years, decade (s) even. At what point does the information become valid for the taking of a position "if you were aware of the loans, the injury, the ilness" why did you not divorce the moment of gaining this knowledge?"

              I think life is harder on some people and it is life. Marriage is to be for the better or worse (romantic view :-) but staysingle is blending too many issues with the blanket statement.


              • #8
                If the reason the spouse couldn't work was for a disability then you are on the hook for the rest of your life.
                Good morning Tayken!! Please if I gave you my wife's - oops sorry EX's contact info can you mail her a letter???? Just came up yesterday, AGAIN.

                As of this morning, this still remains an issue here in my home - my ability to eat anyway I can with the money I do get after paying for things like perscription and dental copay, oh and some food!. I scronged around the freezer last night to eat and I got chastized this morning by both for eating something that was not even labelled as: "do not touch, look at or even think of....."

                These couple of small containers from a huge pot of home made Spagetti sauce last month, were made for when the eldest decided she wanted to use it for her lunch or supper some day or week or month in the future - and yup I do have some rights I think since I actually helped pay for some of the stuff that went in to make it------ admit to not much though but still give me points!)

                (Yes I omitted 90% but not important - nothing new) I just went blank. Thought of what was discussed at my doctor's yesterday. Thought of what is to come and continued on with my morning at least for now, with a smile.

                Sorry guys, I couldn't resist.


                • #9
                  Don't do it...I have a friend right now who is being challenged with a 'revisit. He gave a massive lump sum, and also set up a separate trust ffund to be administered to their children over 20 years for 'extras' (not day to day living expenses), and was being managed by his ex-wife for their children. It is going back to court because she has spent it all and wants more money now.


                  • #10
                    The reason the family court judges will often rule YOU are on the hook for lifetime spousal support, regardless of finances, years of marriage etc., if you admit to pre-marriage knowledge of a disability or ailment that deems your ex-partner eligable for state funded disability, is the state will download the financial responsibilty off the taxpayor on onto you....simple and a fact!


                    • #11
                      Yeah, it's kind of unfair how the idea is that if you knew about the illness/disability before marriage but married anyway, or stayed married after diagnosis, then obviously you were willing to support your spouse for life.

                      Forget about how the rest of the terms of marriage are no longer valid; the agreement to support the person is permanent. I guess it's the price Canadians pay for no fault divorce.


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