question on support

[leaffandad]

hi, lived together 4 years, married another 2 years. we made similar incomes over the 6 years 40 to 50k per year. for one year and 6 months i paided for morgage and home insurance while she and my 3 year old lived at the matrimonial home. she never went back to work! no real explanations other then saying stressed from speration, judge even asked her twice regarding working and why she had yet to work, my wife didnt give a real reason for not returning, she may have been let go for not returning? not sure. wife just agreed to by the house from me, altough no income she has a new car etc, her parents are covering all the expenses i assume. so big question, should i be expected to pay support? and if so how much? and how long. thanks for the help!

[HammerDad]

You may be ordered, but I wouldn't up and do it.

You can argue that she is under-employed and that because of decision to remain under-employed that an income equal to what she used to earn be imputed to her as she is capable of earning at least that amount.

Failing being able to impute an income to what she used to make, you then argue an income be imputed to her of not less than full time minimum wage, so about $20k per year.

Even with full time min-wage, once all tax credits and c/s payments are included, her income would be at an amount that likely wouldn't justify spousal support.....notwithstanding she first has to prove she is even entitled to spousal support....and being an able bodied person whom used to work.

Did she return to work after her mat-leave? If so, you can argue she only began under-employing herself at the breakdown of marriage as an attempt to justify SS.

I hope you aren't continuing to pay for the house (unless your credit rides on it and/or you want to maintain your equity position) and are only paying guideline c/s.

[leaffandad]

she didnt return to work after mat leave, also about a month ago her lawyer sent a letter that she was working part time 3 hrs a night.... during the year and one half i paid for the house to keep position on the equity, the judge considered my payments as at least sufficient or " overpayment or underpayment" she wasnt dealing with that today. the judge also felt i was not acting malicious or bad in regards to make actions. so her lawyer has actually sent a letter asking me to address support payments, how should i respond? a flat out no or with certain questions regarding her work status etc. thanks for your help

[dinkyface]

Assuming you are agreeing to pay full child support (i.e. you have your child for less than 3 overnights per week), then guidelines indicate you would be paying $450/month, based on a $50k salary. Her income is not relevant.

Your mortgage payments have 2 components - interest and capital. The capital amount that you have paid down since your separation should be reimbursed to you as part of her buyout (since it's the equity AT SEPARATION that is split). AT LEAST half of the interest portion, and at least half of insurance can be considered in lieu of child support. (Actually you could claim that ALL of the interest portion and insurance are CS, or even further you could be asking that she reimburse you for occupational rent i.e. reimburse you for the fact that you are not able to live in a house that you continue to pay for ... but I'd avoid mentioning this unless they question that you are currently not paying enough)

Making wild guesses: your mortgage is $1200 monthly, which is 75% interest and 25% capital (because you've only had the mortgage for a few years), insurance is $60 monthly. That means that you are currently covering $450+$30 = $480. Which slightly exceeds the guideline amounts.

I'd suggest that your response is that you feel that your mortgage/insurance payments are in lieu of CS, and are exceeding the guidelines, and that you agree to pay according to CS guidelines AFTER the buyout is completed.

She does not appear to be entitled to SS. DO NOT MENTION IT. THERE IS NO NEED TO DISCUSS HER EMPLOYMENT/SALARY - IT IS A FUTILE BLACK HOLE OF ARGUMENT.

[leaffandad]

great advice, thank you.

[dinkyface]

I just checked: the capital/interest splits for a 25-year amortization (assuming no lump sum payments)
1st year: 38% capital
At 5 years: 46% capital (54% interest)
At 10 years: 56% capital
At 15 years: 69% capital

So, you are contributing around $350-$375, counting only half the interest portion of my wild guess numbers below.

For a 30-year amortization, it is 39% capital at 5 years.

I used the paydown chart that this calculator gives to figure out the splits.
https://www.rbcroyalbank.com/cgi-bin...tart.cgi/start

Other thoughts
- do you think she will qualify to hold the mortgage herself? $40K income only covers a $700/mo mortgage (30yrs, 4%, with $350 monthly for property tax & heating). And lending rules are MUCH stricter than they were 5 years ago. Possibly she is counting on SS to make this happen (how she pays her bills is no longer your problem, but it's good to know if you are headed towards a non-workable solution)
- can you reduce your mortgage payments to interest-only? Because the likelihood of recovering your capital portion is probably slim.

[leaffandad]

good advice, think she will get a co-sign for a morgage. and yes it is good to know that iam heading towards a non-workable solution