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-   -   Lottery winnings and how it would affect CS/SS (https://www.ottawadivorce.com/forum/showthread.php?t=9275)

cashcow4ex 05-13-2011 10:33 AM

Lottery winnings and how it would affect CS/SS
 
Not that it has happened but I am curious to know what would happen if I ever won the lottery. What would my Ex wifes entitlement be to it? We have been divorced for 2 years now. She has custody and I have the kids every other weekend and every wednesday.

WorkingDAD 05-13-2011 10:47 AM

Lottery not taxable in Ontario at least as I know... so it will not be as income on NOA. I do not see how she will be able to have anything from it...

Eh... I have so much plans for lottery win. I remember had a dream where I won lottery. I bought two great houses next to each other. One for my kid with ex another for me and my family. In that dream everybody was happy. Kids play together... having dinner together... even cruise )) I remember I woke up with such great feeling inside...

Now if I would have dream with my ex house close I would wake with cold sweat and hardly fall a sleep after... Total nightmare... Call me silly but I would never ever ever imagine that this will come to this...

billm 05-13-2011 11:14 AM

Quote:

Originally Posted by cashcow4ex (Post 66925)
Not that it has happened but I am curious to know what would happen if I ever won the lottery. What would my Ex wifes entitlement be to it? We have been divorced for 2 years now. She has custody and I have the kids every other weekend and every wednesday.

This is what I wrote and put in my SA in the CS section, and I feel it is fair given the concept that CS is based on income (adjusted yearly):

If either of the parents have income that is not reported on the Federal Tax return or alternative income calculation, then that income shall be added to the determined income amount for the purpose of child support calculation. This includes but is not limited to unreported income, lotteries or other winnings. This does not include money or assets received as a result of inheritance.


My SS agreement is not effected by current income, so it would not change that for me.

WorkingDAD 05-13-2011 11:33 AM

Quote:

Originally Posted by billm (Post 66933)
This is what I wrote and put in my SA in the CS section, and I feel it is fair given the concept that CS is based on income (adjusted yearly):

If either of the parents have income that is not reported on the Federal Tax return or alternative income calculation, then that income shall be added to the determined income amount for the purpose of child support calculation. This includes but is not limited to unreported income, lotteries or other winnings. This does not include money or assets received as a result of inheritance.


My SS agreement is not effected by current income, so it would not change that for me.

I do not know. From one point of view it's sound reasonable. But form another knowing how many people live off the kids I would not do it. Lets assume you win lottery. Will have to pay 10k month CS at least for one year right, unless you win again what is unlikely unless your have convenience store (if you know what I mean)? it's coming to 120k a year. Next thing you see your ex driving new car, went for cruise (without kid), other parts of the body new and improved etc...

What I would do I would make sure those money will be secured for the kid. Put in trust or education fund, send child to the best school even if it require to move (help with move to ex)

Mominneed 05-13-2011 12:13 PM

Generally speaking, child support is based on ALL income source and that would include lottery winnings. CS is based on how you would generally be allocating a certain percentage of all income to your spending on the child. Normally, you would spend any lottery winnings on child as well.

However, it seems a little ridiculous depending on the $. Reasonable people should agree to something in-between. Some extra CS for a 1 year period (not per table) AND a lump sum put into trust for the childs future. This however would require 2 reasonable people which is often not the case in family court....

lilspinx 05-13-2011 12:20 PM

Quote:

Originally Posted by Mominneed (Post 66944)
Generally speaking, child support is based on ALL income source and that would include lottery winnings. CS is based on how you would generally be allocating a certain percentage of all income to your spending on the child. Normally, you would spend any lottery winnings on child as well.

However, it seems a little ridiculous depending on the $. Reasonable people should agree to something in-between. Some extra CS for a 1 year period (not per table) AND a lump sum put into trust for the childs future. This however would require 2 reasonable people which is often not the case in family court....


Yeah, RESP or other instrument for the kids is the way to go, some parents just need to get educated.

HammerDad 05-13-2011 12:34 PM

From my understanding, lottery winnings are not calculated into CS.

However, the interest accrued from the winnings is. And that should you win, cs would be determined based of a reasonable level of interest off of the principle amount.

So lets say you win $10mil. You buy a $750k house and give $250k away to family leaving a principle amount of $9m. A reasonable rate of return (about 7% give or take .5%) would have to be determined. The interest would then be imputed as your income and CS would be determined from there. So in this sitation, $630,000 would be imputed as income, and CS would be $4806 per month.

billm 05-13-2011 12:45 PM

I don't know why people have to make things so complicated.

CS is based on income, so if you have lottery income, just use that for that year.

If you have interest income in the future, that gets used too for CS income.

HammerDad 05-13-2011 12:55 PM

But lottery "winnings" are not "income". It is untaxable and non-reportable. CS is based of 150 of your income tax return. Lottery winnings is not calculated there (unless I am mistaken, which seems to happen frequently).

WorkingDAD 05-13-2011 12:58 PM

Quote:

Originally Posted by HammerDad (Post 66960)
But lottery "winnings" are not "income". It is untaxable and non-reportable. CS is based of 150 of your income tax return. Lottery winnings is not calculated there (unless I am mistaken, which seems to happen frequently).

or common do not beat yourself too much about that Avalanche truck :cool:
You are one of the best here HummerDAD !!!


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