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  • Support calculation anomoly

    Wondering if anyone has experienced something similar.
    Say the Payor's salary has been in the $50k range for a decade and then has been laid off at the end of the year and in that last year got a lump sum severance of $40k, making it $90 k for that year as per income tax filing. The following year has been unemployed, but searching, but nothing had been found and is on EI for about $10k.

    Now, calculating on a year to year basis, turns out Payor has been overpaying CS for the decade before. But the year of the $90k calculates as owing $10k in CS. Does that make sense or would a judge rule that the year of severance should be calculated like the previous years(3 year rule?) and the severance be added to the unemployed year(which is what the severance is supposed to be for)? Hope the question makes sense.

  • #2
    It all depends on how reasonable your ex is. Technically the fcsg state that you update according to income. So you could calculate what you should have paid on that income last year and write a cheque. Or you could say the 40 grand severance will be in this years calculations and you continue paying according to a 50 grand annual salary.

    Im not sure about the overpayment. If you had said something those years then maybe but if you are just noticing it now because your income has changed you may be out of luck.

    This is why the dbs decision happened. A payor who refused to share financial info and refused to update. Now the courts are sticklers for the dates, amounts and communications.

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    • #3
      Originally posted by rockscan View Post
      Im not sure about the overpayment. If you had said something those years then maybe but if you are just noticing it now because your income has changed you may be out of luck..
      If it's thru FRO, and the EX is not reasonable, then consider the over payment a gift.

      FRO will only enforce what is on paper and is slow to change the amounts. Going thru the courts to get the amount back will probably be an uphill and costly battle.

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      • #4
        The $90k year was recent, as is the calculation of owing $10k for it. Only the amount on the original court order(almost a decade ago) was paid to date. It's now that calculations are being checked, that the over payment for a decade has been discovered. The main issue is would a judge give the one year of $90k that value or see it as an anomaly when the last few years are looked at? The whole 3 year average or review thing. EI treats the lump sum severance as continued income for the following year and then EI payments kicks in.

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        • #5
          so the amount wasnt updated each year?

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          • #6
            Nope. The over payment from the previous decade would amount to about $4k. It's that big $10k owed if the $90k year is taken as is. If that year is averaged with preceding years, it would probably have an over payment instead of owing $10k. That year had been paid as regular.

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