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.
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Lottery winnings and how it would affect CS/SS
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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...
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Originally posted by cashcow4ex View PostNot 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.
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.
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Originally posted by billm View PostThis 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.
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)
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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....
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Originally posted by Mominneed View PostGenerally 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.
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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.
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Originally posted by HammerDad View PostBut 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).
You are one of the best here HummerDAD !!!
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I agree with HammerDad. CS is based on line 150 of your return and lottery wins in Canada are not taxable so only the interest earned should affect CS.
I know if I won, I would make sure my kids were well taken care of...the nice part would be that I would be sharing because I want to...not because I legally had to.
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Originally posted by SadDad2010 View PostI agree with HammerDad. CS is based on line 150 of your return and lottery wins in Canada are not taxable so only the interest earned should affect CS.
I know if I won, I would make sure my kids were well taken care of...the nice part would be that I would be sharing as a responsible parent...not because I legally had to.
Yeas I am not perfect but who does?
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Originally posted by billm View PostI 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.
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Originally posted by SadDad2010 View PostI agree with HammerDad. CS is based on line 150 of your return and lottery wins in Canada are not taxable so only the interest earned should affect CS.
I know if I won, I would make sure my kids were well taken care of...the nice part would be that I would be sharing because I want to...not because I legally had to.
Income is income - to say 'well its not on line 150, so I don't have to change CS', is hiding behind a false technicality at best, immoral at its worst.
If your CS is based on income, how can you ignore the income of a lottery - simply because it is not a taxable event for a Canadian lottery - what if the tax laws were different (as they are in the US), and it was taxable income - then you think you should pay?? What is the difference other than it simply it being non taxed income, which in of itself is not a difference from the point of view of determining CS.
Again, if your ex won the lottery, I'm sure you would want CS changed....
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...then again in Idaho...you better be divorced, not just separated
Lottery winner may have to split it with estranged husband -
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