Hi,
I am negotiating with my spouse on how to proceed with SS. Her situation is that her current situation is around 40K a year. She just recently completed her masters whose average salary in Ont is 63K a year. Married 16 years, age 47. took 2.5 years off to care for one child, has worked part-time at her insistence for last 6 years. Has practised in the field she received her masters in. My stance is her compensatory entitlement is weak as she is still very employable but she does have claim to non-compensatory based on need. I make 115K a year. Shared custody for our 14 yr old. I would prefer to pay a lump sum out of proceeds from my portion of the sale of the house.
Low end of the ss with child support table puts her at 1100 mth. I have looked at case law and it states that lump sum payments are discounted based on present value approx 5%, tax rate of payee approx. 25% and inability of payer to change for material changes in the future of 30% approx. Question one is how many years to calculate the SS over? Is the minimum half length of marriage every time? that puts me at owing 112K in monthly payments over 8.5 years which, having the above discounts applied, looks at a lump sum award of around 50K. Question two is does this seem right to those who know something about this? Question three is do I have a right to pay out as a lump sum if I want? or some combination of lump sum plus monthly for a set amount of time?
I think this looks like a good deal for her but I might not being seeing it right. Any opinions?
Also, I would state that no review of income are requested by me so when she gets a better job, her lump sum definitely not affected and if there are short term monthly payments are not affected either. My biggest concern is monthly income for me. If I get less of the sale form the house, so be it.
I am negotiating with my spouse on how to proceed with SS. Her situation is that her current situation is around 40K a year. She just recently completed her masters whose average salary in Ont is 63K a year. Married 16 years, age 47. took 2.5 years off to care for one child, has worked part-time at her insistence for last 6 years. Has practised in the field she received her masters in. My stance is her compensatory entitlement is weak as she is still very employable but she does have claim to non-compensatory based on need. I make 115K a year. Shared custody for our 14 yr old. I would prefer to pay a lump sum out of proceeds from my portion of the sale of the house.
Low end of the ss with child support table puts her at 1100 mth. I have looked at case law and it states that lump sum payments are discounted based on present value approx 5%, tax rate of payee approx. 25% and inability of payer to change for material changes in the future of 30% approx. Question one is how many years to calculate the SS over? Is the minimum half length of marriage every time? that puts me at owing 112K in monthly payments over 8.5 years which, having the above discounts applied, looks at a lump sum award of around 50K. Question two is does this seem right to those who know something about this? Question three is do I have a right to pay out as a lump sum if I want? or some combination of lump sum plus monthly for a set amount of time?
I think this looks like a good deal for her but I might not being seeing it right. Any opinions?
Also, I would state that no review of income are requested by me so when she gets a better job, her lump sum definitely not affected and if there are short term monthly payments are not affected either. My biggest concern is monthly income for me. If I get less of the sale form the house, so be it.
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