Child support amount based on lots of overtime

[Itsabouttime]

Couldn't figure out how to word title properly.

Anyway. I pay and have been paying the table amount since day 1. It's reviewed as per court order every year in May and payments take effect June 1st. No problem there.
My problem is that probably %25+ of my salary is based on overtime hours. So now work slows down and I'm not getting much or any overtime anymore. I'm losing $400+/mo now. When it's reviewed again next year it will reflect the decrease in overall yearly salary. Thing is, this will likely happen again as I'm in the automotive field where 7 days a week is fairly normal. But it has it's ups and downs. Is there any way to "level" my child support instead of having it fluctuate year after year? I originally brought this up with several lawyers and they assured me "don't worry. It all works out in the end". Does it really when I have maybe $200 to my name at the end of the month because overtime wasn't available? (That's only after paying cs, rent and my bills. That $200 is for food and gas).

Anyone else have this problem? Or any solutions?
I know about undue hardship but I don't know if that's going to work. I mean in 2 months from now I could be working 50+hrs/week again.

Oh, and talking to my ex regarding this won't happen either as she has blocked all communication at the moment (that's another issue).

Thanks.

[standing on the sidelines]

it would suck but as long as you are making about the same each year it does all work out.

There are two things you can do, stop working as much overtime so your CS is based on a 40hr work week or tweak your budget to cover your bills etc for the lean times.

There isn't much you can do. Undue hardship may not work as they take into consideration your partners (if you have a wife or common law one that is) income as well.

[OntarioMomma]

You pay child support on annual income, so it does all eventually equal out.

Some months you will have more disposable income, some months less.

The only solution I can see is that you'll need to start saving during the months you have more, so that you can cover your expenses in the months you have less.

I don't see you being successful in an undue hardship case.

[rockscan]

Because your income fluctuates, the annual review is better otherwise you would have to go back and calculate the months you made more and provide arrears. The other posters have it right that you should put money away for leaner months or dont work overtime. If youve got a dollar amount in your agreement for the high monthly amount and you try to reduce it, your ex can file with a provincial maintenance group (i.e. FRO) and you'll still pay more. Unless youre willing to stop working overtime and go through fixing a court order for that level, youve got to do what you do now. Hardship will be difficult to prove and you run the risk of having an income imputed based on your years of OT.

[FightingForFamily]

You could also smooth fluctuations by using the average of the last 3 years of income for computing CS.

[Rioe]

Child support is adjusted annually based on the previous year's income, so it does take into effect that there are fluctuations, such as differences in overtime. So the overall effect is that it does work out in the end, as the lawyers advised you.

The problem is only that it lags behind by a year, and the only way to deal with that is through good financial planning. So if you have a good year for income, and think that the next year may be worse, you should be setting money aside to cover the CS that will be harder to pay in the future. Conversely, when you have a good year, you will be paying lower CS based on the previous bad year's income and have more disposable income. That's when you should be planning ahead and setting money aside.

If you are struggling now because you didn't save last year, all you can do is tighten your budget and be frugal until the next adjustment. The sacrificing you must do now is the payment coming due for the spending you did last year when income was good instead of saving.

You could also smooth fluctuations by using the average of the last 3 years of income for computing CS.

As far as I know, this is usually only done when setting up the initial CS payment, when someone has an erratic income, before the annual adjusting begins. Once you start, CS should be based on actual income (unless of course there is imputation going on).

[FightingForFamily]

The 3 years average is also used for people whose income is very sporadic and fluctuates a lot. For example, same job but making 20k - 180k each year. It might not be ideal for this case, but nothing stops you from offering it as a "step down" in support as the income decreases.

[Serene]

You should be planning ahead for this. You earned it, so you'll have to pay CS based on it. You have to learn to save to account for the slower months.

[mcdreamy]

I've never really agreed with some of the calculations behind the tables, and certainly don't think overtime should be included post separation in calculations. I had to pick up extra work after the divorce to pay my household bills. How would one ever get ahead?

Is the overtime mandatory for you? Can you consider cutting back to regular working hours, and settle into paying cs on that amount moving forward at the next adjustment?

[stripes]

Bear in mind that the annual review (with CS staying the same throughout the year) means predictability for your ex as well as for you. It's in everyone's best interest for your ex to have an idea of how much money she can expect from you each month. Month-to-month adjustments based on overtime make planning and budgeting difficult on her end.

Like the other posters say, ultimately it all works out - you earn less one year, you pay less the next, and you maintain a "cushion" to carry you through years when you're earning less but paying on the higher amount you made the year before.