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  • Yearly CS recalculation

    So my case is about to go to trial which will result in an order for CS. Since we share custody and my ex's income can fluctuate greatly, the CS amount will also fluctuate year to year.

    I know that the new rules are that ex's must swap income tax returns every year to make CS adjustments but does anyone have any idea how the adjustments are handled when there is a court order in place? Assuming that a court order of course results in the funds being garnished by FRO, how are changes made each year? And how are over/underpayments handled?

    So far we've been adjusting as necessary on our own but once FRO is involved I'm curious how things will be handled.

    Thanks!

  • #2
    I think FRO can only handle court orders and I don't think they can handle a court order that does not have a specific set value. Do court orders ever have a formula for determining CS and not a set value??

    Why are you getting FRO involved?

    Sounds like you should just continue self adjusting and leave FRO out of it.

    Comment


    • #3
      Originally posted by CSAngel View Post
      So my case is about to go to trial which will result in an order for CS.

      So far we've been adjusting as necessary on our own but once FRO is involved I'm curious how things will be handled.

      Thanks!
      Originally posted by billm View Post

      Sounds like you should just continue self adjusting and leave FRO out of it.
      If you go the route billm suggests, you will have to make sure that it's written into the order that both sides agree that FRO not be used.

      If not added, FRO automatically kicks in.

      (Thanks to the other posters who enlightened me on this policy)

      Comment


      • #4
        I second what billm said! If both parties are able to work now, in the midst of a pending trial, then do whatever is necessary to ensure that you continue to work amicably together and don't involve FRO.

        Generally peoples incomes do not fluctuate drastically. If you wanted FRO to adjust it yearly you and the payor will need to have a consent order signed each year and have it filed with the FRO.

        Or, you can go the route of payment amongst yourselves and adjust it accordingly.

        My own experience with FRO was a nightmare and it was not intentional on either of our parts - at an interim, interim motion I was awarded spousal support but this changed within 2 months at the full motion. He paid the requisite payments to me, as per the court order. Three months AFTER the full motion (5 months from the first order) his employer was sent paperwork for garnishment. I hadn't received anything whatsoever and had no idea what was going on. After MANY a phone call (try and explain things when you don't have a number - how could I have one if you haven't given me anything yet??) I was able to let FRO know he didn't owe me any money but they had already garnished his wages and then he was unable to pay child support, while FRO sat on that money because the new order was now in the system........hollay! My response, a bit bitter I am sure was: "So let me get this straight, you took money from the man who needs to pay his child support this month and can't now because you took it and you can't give it to me as child support because that still isn't completely in the system and you have absolutely no information from me whatsoever to give that money?"

        I much rather deal with my ex. Things are not always amenable (his income fluctuates drastically each year) but we are best able to deal with it ourselves in OUR way. So, if you can work with him now, stick with him.

        Comment


        • #5
          Firhill is correct in that FRO automatically kicks in, albeit months after the fact. But it can be quickly corrected. When the payor receives information respecting the garnishment you and him will need to work together in getting the forms (available online) to have no involvement with FRO. We did this and it was corrected right away, but wish we had known about it before they took the funds.

          Great question to ask a lawyer: When drafting the final order, can the clause respecting FRO be removed, as per agreement by both parties? If this is doable then it never finds it way to FRO. On the OTHER HAND, because my order has been sent to FRO, if there ever comes a time I need to go through them then the order is there and I need only pay a small sum (70 bucks I believe) to have it reinstated, rather than having to go to court again to request an order for FRO involvement.

          Comment


          • #6
            The court order is automatically forwarded to the FRO and if you do nothing then the FRO takes over. It actually isn't long and mine kicked in after about 1 month. You can notify the FRO immediately that you are opting out, so you will never be using the FRO.

            As for updating every year, you can do it 2.5 ways.

            You can do an amending agreement and file this with the courts. Each of you has to sign.

            You can file motion to change; changing the amount of CS has it's own section on the motion application and it is really straightforward. If the other party consents then it just goes through automatically.

            If the other party doesn't answer, it goes through automatically. This is the same as consent, but it is a likely route if the other party is grumbling and playing passive/aggressive.

            If the other party disputes, they will likely lose since there is no material change other than income, and that was covered in the original order. Therefore they have nothing relevant to dispute and the motion will go through practically rubber stamped. You will have show up or be represented; you will get costs awarded.

            Comment


            • #7
              Originally posted by billm View Post
              I think FRO can only handle court orders and I don't think they can handle a court order that does not have a specific set value. Do court orders ever have a formula for determining CS and not a set value??

              Why are you getting FRO involved?

              Sounds like you should just continue self adjusting and leave FRO out of it.
              I don't have a choice. My ex is not going to settle so all of our issues will go to trial and we will end up with a court order which will end up with FRO. There is no way in hell my ex will ever agree to not go through FRO even though it would be much easier for both of us.

              So it looks like I'll be filing a motion each and every year. Fun times.

              Comment


              • #8
                I'm in the same position.

                My ex drafted the SA, I responded, it had language in it that specified that we wouldn't go through the FRO. She changed her mind two weeks after it was signed. So off to the FRO we go.

                My income will be less as the result of a bonus being substantially smaller for 2012. She had a job at 25K but lost it in November. It will be interesting to see how it works out.

                Comment


                • #9
                  I know that the new rules are that ex's must swap income tax returns every year to make CS adjustments but does anyone have any idea how the adjustments are handled when there is a court order in place? Assuming that a court order of course results in the funds being garnished by FRO, how are changes made each year? And how are over/underpayments handled?
                  If you decide to roll the dice at Court then the Order will explain how recalculations are handled, including arrears.

                  To avoid the issue of arrears entirely, parties can decide to base each year's child support on the previous year's income, and thus roll things forwards.

                  When one party has greatly fluctuating income it can be beneficial to base their child support on the average of the past three years for the sake of stability.

                  Comment

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