Is this intentional underemployment?

[stripes]

Recent threads have me thinking about my own situation:

I'm in a profession where we are able (and expected) to take a sabbatical one year out of every 6-8 years. During the sabbatical, salary is reduced by 10-20% for the year. It's not a vacation - we're expected to have a work plan and undertake study and independent projects which are relevant to our regular professional activities; the work plan has to be approved by the higher-ups before the sabbatical will be granted. However, we are released from regular duties during the year.

I'm starting sabbatical in the next few months. The impact on my income will appear on my 2015 and 2016 line 150s, as the sabbatical stretches across two calendar years. I have 50/50 parenting and pay offset, adjusted every year based on taxes. Our incomes are close, with less than 10% difference.

I had never thought about whether this could be considered intentional underemployment until now. It's intentional, in that I'm choosing to do something that will reduce my salary by 10-20% for one year, but I'm still fully employed, it's an expectation of my profession that we will use sabbaticals to enhance our careers, and I'm not doing this to avoid CS.

My ex is extremely argumentative and is always coming up with reasons why I should give him more money, none of which have ever worked. However, refuting them takes up time and energy. So I'm wondering:

1. Could he argue that I am intentionally reducing my income, because I could have refused to take the sabbatical?

2. Do I have an obligation to give him a heads-up and say "FYI my income in 2015 and 2016 is going to be down by about 5-10%, then it'll go back up"? Or would that be asking for trouble, and I should just continue sending my tax information as usual?

[Links17]

I don't think so.

Would a reasonable married parent take a sabbatical? Thats virtually the test to apply.

[HammerDad]

Recent threads have me thinking about my own situation:

I'm in a profession where we are able (and expected) to take a sabbatical one year out of every 6-8 years. During the sabbatical, salary is reduced by 10-20% for the year. It's not a vacation - we're expected to have a work plan and undertake study and independent projects which are relevant to our regular professional activities; the work plan has to be approved by the higher-ups before the sabbatical will be granted. However, we are released from regular duties during the year.

I'm starting sabbatical in the next few months. The impact on my income will appear on my 2015 and 2016 line 150s, as the sabbatical stretches across two calendar years. I have 50/50 parenting and pay offset, adjusted every year based on taxes. Our incomes are close, with less than 10% difference.

I had never thought about whether this could be considered intentional underemployment until now. It's intentional, in that I'm choosing to do something that will reduce my salary by 10-20% for one year, but I'm still fully employed, it's an expectation of my profession that we will use sabbaticals to enhance our careers, and I'm not doing this to avoid CS.

My ex is extremely argumentative and is always coming up with reasons why I should give him more money, none of which have ever worked. However, refuting them takes up time and energy. So I'm wondering:

1. Could he argue that I am intentionally reducing my income, because I could have refused to take the sabbatical?

2. Do I have an obligation to give him a heads-up and say "FYI my income in 2015 and 2016 is going to be down by about 5-10%, then it'll go back up"? Or would that be asking for trouble, and I should just continue sending my tax information as usual?

It may be. But is it reasonable? Meaning, is it reasonable in your industry and will it unreasonably impact the c/s calculation?

I would argue that it is an industry standard and a 5-10% decrease is not unreasonable.

[rockscan]

I wouldnt think so either. Youre not quitting, youre on a work determined leave. What if you went on stress leave? Or got a raise one year but not the next?

[arabian]

No.
Your ex has to show that you conducted yourself in a manner intentionally deliberate to avoid your support responsibilities.

Often people work for employers and have to take a pay reduction in order to stay employed (union contracts).

If you have the same employer and the sabbatical was something anticipated prior to time of separation then you can possibly nail him for double costs should he decide to pursue.

Let him get himself in a frenzy, spend lots on lawyers and you can sit back, eat popcorn and enjoy the show.

[stripes]

Thanks guys. Always helpful to have the input of outside observers.

The sabbatical is industry standard, and quite foreseeable (and we're in the same industry). The impact on the offset will be small. And if the shoe were on the other foot and the ex had a sabbatical (temporarily increasing my offset CS payments), I wouldn't think it was out of order, or that he should have consulted me in advance.

[Headwaters1]

I hate the spoil the party but I would say yes.

A sabbatical is to improve your earning potential but you have a choice as to whether or not you do it. A good lawyer for your husband would argue that if you see merit in taking a sabbatical then by all means do it but it doesn't forego your responsibility to care for the child. Your payment should continue at the regular rate. A good lawyer would say to you "if this is so good for your career then borrow the money to see it through and pay your support" then when your career advances it will more then pay for itself.

There are many cases where a parent quits work and pursues a college education and that is considered underemploying themselves. I earn a fairly sizable income in business, I know I can't simply say it's time for me to get my MBA so the child support payments stop.

Another test is if you took night courses to improve your designation or experience they wouldn't allow you to deduct the cost of courses from cs. The income you are foregoing is just like tuition...its a cost of advancing yourself.

I know it's expected in your profession...I take it you are a professor or teacher but I bet a court might see it as reneging on your commitments and if it's such a positive for the career then it should be an investment you make and see through. It shouldn't be a shared risk your husband takes on with you (he loses those two years) so that by chance if you keep working hard it pays off later.

Sorry you seem like a sincere person...not trying to "turn the screws". Just thought it would be a healthy second opinion.

You can always just give it a go and worst case they ask you to keep paying. Then at which time you just have to borrow the money to keep payments up.

[Rioe]

Did you guys discuss sabbaticals while you were married? Was there an assumption that you would each do them? It certainly sounds as though your mutual employer expects them. In that case, I would suggest that there's nothing unexpected about it, it's a normal fluctuation for your profession much like lulls in business are for other professions, and that CS should follow the income fluctuation.

I know you probably hate the sounds of this, but have you thought about discussing this with your ex? I'm only suggesting this because you say you guys have the same jobs, so the potential exists for him to also take a sabbatical year. So before either of you do it, while it's still theoretical, talk about whether doing so should affect CS or not, on an equal basis, for BOTH of you. Get it in writing.

Or just send him a note that CS is changing due to your sabbatical, and ask when he may be considering one of his own so that you can anticipate the change in CS that might bring to your budget.

[stripes]

Certainly when we were married we both expected to take sabbaticals as the opportunity came up - it's an expectation of the profession.

As for bringing it up directly - with a reasonable person, this would be the way to go. But my experience has taught me that raising any topic involving money just unleashes the crazy. He is convinced that somehow I owe him much much more than offset CS and S7 (even though equalization was extremely favourable to him), and that ways must be found to make me pay. Bringing it up in advance would be like a red flag to a bull.

So if I have a legal or moral obligation to inform him that my income will drop 10%, I will - but if I don't have that obligation, I'll continue as I'm doing, recalculating annually based on line 150 and NOA.

If he wants to get upset about it at that time, he can do so. It's a normal, predictable variation in income, and the impact on CS will be very small, given that our income are close. If/when he gets a sabbatical, my offset payments will increase, but I am fine with that because, again, it's a normal, predictable, and minor variation.

[HammerDad]

I hate the spoil the party but I would say yes.

A sabbatical is to improve your earning potential but you have a choice as to whether or not you do it. A good lawyer for your husband would argue that if you see merit in taking a sabbatical then by all means do it but it doesn't forego your responsibility to care for the child. Your payment should continue at the regular rate. A good lawyer would say to you "if this is so good for your career then borrow the money to see it through and pay your support" then when your career advances it will more then pay for itself.

There are many cases where a parent quits work and pursues a college education and that is considered underemploying themselves. I earn a fairly sizable income in business, I know I can't simply say it's time for me to get my MBA so the child support payments stop.

Another test is if you took night courses to improve your designation or experience they wouldn't allow you to deduct the cost of courses from cs. The income you are foregoing is just like tuition...its a cost of advancing yourself.

I know it's expected in your profession...I take it you are a professor or teacher but I bet a court might see it as reneging on your commitments and if it's such a positive for the career then it should be an investment you make and see through. It shouldn't be a shared risk your husband takes on with you (he loses those two years) so that by chance if you keep working hard it pays off later.

Sorry you seem like a sincere person...not trying to "turn the screws". Just thought it would be a healthy second opinion.

You can always just give it a go and worst case they ask you to keep paying. Then at which time you just have to borrow the money to keep payments up.

Big difference in someone going back to school and the sabbatical described herein is huge. In going back to school, the c/s payors income drops to zero or an amount significantly lower. In this sabbatical, the OP's income is dropping 10-20%. In a 50/50 arrangement where the incomes are within 10% of each other, that would have a minimal impact the c/s being paid by one parent to the other.

If the ex in this situation pays c/s of $100 a month, the amount would grow to about $115-$130 (taking inconsideration ratios being adjusted). A difference of approximately $360 would not be found as being a material change. Now, I am using hypothetical numbers, but you get the point that the change would not likely be significant enough to even warrant hiring a lawyer whose rate would chew up any savings you would make if you won in court.

[serendipitous]

@OP....the mention of sabbatical will indicate you and your ex are both lecturers / professors. I am surprised this was not worked into your divorce order? If you are both indeed working at the same place or both professors, then he should be educated on the fact that profs take sabbatical to do research / project work as indicated.

Get a letter from the Dean / school with letter heading, and send it to him / his lawyer to show that you aren't intentionally under employing yourself

[stripes]

(Just a side note, not only professors and lecturers take sabbaticals, they are also used sometimes by (among others) clergy, physicians, some nonprofit administrators, depending on employer ... ).

[serendipitous]

Oh...please tell me what I don't know. The part you missed from the OP of course, is where she alluded to projects and research.

(Just a side note, not only professors and lecturers take sabbaticals, they are also used sometimes by (among others) clergy, physicians, some nonprofit administrators, depending on employer ... ).

[Janibel]

If it's expected and nothing out of the ordinary (whatever your profession is) I don't see how you could be penalized for it. If you where in an intact family, this issue would not be an issue at all...

It would probably end up costing your ex more to try to debate this in court than to accept the status quo ... I don't think it is considered underemployment when it's simply how your career usually ebbs and flows.

My ex is a seasonal worker (construction) so our financials take that into account since it's the norm in his chosen profession, not all of us have 9 to 5 stable jobs.