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Does Disability Insurance count as income?

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  • Does Disability Insurance count as income?

    Well looks like my friend is being kept off work longer....work insurance have sent him the long-term disability papers.

    For the last 3 months (short term disability) he has been paid from his work 60% of his income....his work continues to garnish this amount/sending his child support payments to FRO (so the guy is only seeing just over $500 every two weeks---over $800 goes to his ex for child support...then he has to pay half of her babysitting expenses and half of any activities the kids are in)

    Now that they have put him on long-term disability....paperwork said that the insurance company will be directly giving him a monthly payment now instead of his work giving him the bi-weekly payments.

    Wonder if insurance will still be garnishing child support?

    Another co-worker who knows his situation was saying that disability insurance does not even count as income....telling him that he should not be still paying what he has been??? (anyone know if this is actually true)

    actual guy in situation says he's always been told child support is simply based on the previous years income....no matter what source (disability, rrsp's, etc.) and no matter what they are currently making (for example because he worked part of this year...his income will probably be around $45,000......but currently he'd really be making $30,000 on disability)......He says he will still have to pay based on that $45,000 and struggle....

    I don't understand how a Mother can earn over $50,000 a year herself.....continue to collect $1,000 a month from the father (over $800 for support than the babysitting and activities expenses makes it in the $1,000 range)........while the father has to live off $500 every two weeks (there is no way someone afford their own living expenses--rent/vehicle/utilities/food off $500 every two weeks)

    I understand BOTH parents should be contributing financially to the children.....but I would think this man should be paying much lower amounts now???
    Last edited by Laughingstock; 09-21-2014, 09:33 AM. Reason: addition

  • #2
    He could be paying lower amounts. But it doesn't happen automatically. He has to file a motion to change the existing CS amount and section 7 proportion. It can be a motion on consent if his ex agrees, or it could be done through the court if she doesn't.

    Also, if he's off work, but not disabled enough to be unable to care for the children, he could look after them and save them both the babysitting expense.

    Comment


    • #3
      LTD generally does not get reported on line 150.
      His STD, that was paid via the employer will, but the LTD, no.

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      • #4
        I don't have your answer but just wanted to point out that just because it's not "taxable" income and not in line 150 doesn't mean it's not income for support purposes.

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        • #5
          Most often CS amounts are indeed calculated using the previous years income, however in special cases such as this one, you can ask for it to be adjusted immediately.

          FRO will probably garnish the money from wherever it comes from and will continue doing so until they receive a new order.

          So if your friend doesn't do anything, he will continue to pay the maximum amount. He can take action to try and reduce it.

          Of course, if he comes off LTD he will need to quickly adjust back up to the higher amount as well.

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          • #6
            Perhaps your friend should adjust their spending. Do they need a vehicle if they are on LTD? Just saying.

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            • #7
              A person should get rid of their vehicle because they are on LTD just to maintain CS?
              What happens when they come off LTD?
              What if they owe more on their car than the car is worth...that doesn't make sense.

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              • #8
                Adjusting spending based on income makes perfect sense. Whether the vehicle is necessary is dependent on the situation. It would seem your friend has no trouble reducing CS based on reduced income. One would think the same goes for other spending. Just saying.

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                • #9
                  yes but CS can and should be adjusted to reflect the income of the paying parent.
                  Sell a car? perhaps the payor should sell his home too?
                  Should he live in a shelter just to maintain child support? live off a food bank?
                  There are provisions that allow for these situations in the guidelines.
                  If the relationship was intact, and the payor was on disability, the family would buckle down and perhaps the child wouldn't be getting a new pair of nikes that month for back to school. It's reality.
                  And yes, perhaps a car would get sold, or a house would get sold, but if the CS can be reduced in order for the payor to maintain some sort of life, and the ability perhaps to feed himself, then so be it.
                  CS is YES the right of the child, but can the payor not have some money to maintain a life?

                  Comment


                  • #10
                    Originally posted by beentheredonethis View Post
                    If the relationship was intact, and the payor was on disability, the family would buckle down and perhaps the child wouldn't be getting a new pair of nikes that month for back to school. It's reality.
                    Yes, and perhaps, that family may have to sell the house, or sell the vehicle and take the loss. Oh, and still get junior a new pair of running shoes (without the swoosh) for those growing feet.

                    My thinking is LTD is income for CS purposes. If it is not, it should be.

                    By the way, owning a vehicle or house is not a right. Child support is a right. Yup, the right of the CHILD.

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                    • #11
                      I Think perhaps my view is skewed because as a parent with sole custody, of two young children, My children don't see a dime of that right you speak of. And that's court ordered, because my ex was on welfare/odsp.
                      So while its a right, it's not an absolute and not every situation is the same. I can tell you though... That same court awarded him a car, half a house and half my pension .
                      Disability income is not reported on your income tax return OP. Your CS can either be adjusted now or when your NOA is provided next year.

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                      • #12
                        Posted twice!
                        Last edited by beentheredonethis; 09-23-2014, 10:37 PM. Reason: Posted twice

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                        • #13
                          How "long term" is this long term disability?
                          Has this payor been provided that info? That would probably be the deciding factor.

                          As already stated, they can either agree to a reduced amount while he's disabled, or he needs to get amount reduced through court if they cannot agree. Make an offer to other party that support will be reduced to X, and will be increased again when disability status changes.

                          It's presumptuous to tell someone to get rid of vehicle if person is on disability anyway, to cut their expenses. For all we know, a vehicle may be more necessary for this person, due to disability.

                          The support paid, should reflect the mayor's current income and circumstances.

                          Comment


                          • #14
                            Thank you for the information everyone.

                            I understand your view Beentheredonethis.....everyone's views is based on their own experience/cases. I have learned that there is no common sense with Family Law....It is ridiculous that the court would give your ex a car/half the house/ and half your pension/ when you are left to financially support your children on your own due to the situation.

                            My co-worker's ex got the house in their case (did not buy his share out)

                            My co-worker needs his vehicle TO SEE HIS KIDS....he must provide all transportation for the kids to and from his residence as he and his ex live in different cities.
                            Of course he may not have a vehicle much longer if the financial situation stays the same, he won't be able to afford the insurance renewal.

                            As I've said he's always paid his Child Support, He's not currently behind....just really struggling because his income has dropped substantially...and she's still getting the amount as if he was working, when he's not.

                            Which is why I was looking for the info regarding it all

                            Comment


                            • #15
                              Originally posted by dad2bandm View Post
                              How "long term" is this long term disability?
                              Has this payor been provided that info? That would probably be the deciding factor.

                              As already stated, they can either agree to a reduced amount while he's disabled, or he needs to get amount reduced through court if they cannot agree. Make an offer to other party that support will be reduced to X, and will be increased again when disability status changes.

                              It's presumptuous to tell someone to get rid of vehicle if person is on disability anyway, to cut their expenses. For all we know, a vehicle may be more necessary for this person, due to disability.

                              The support paid, should reflect the mayor's current income and circumstances.
                              I did not tell anyone to get rid of their vehicle.

                              Comment

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