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  • Insurance payouts, is it used for CS. calculations

    I received a one time lump sum insurance payment to help alleviate the stress and financial burden while off on sick leave. My monthly CS payments were not in arrears. This lump sum was for me to use at my discretion. It is not taxable. My ex is now saying that the CS should be bases on my line 150 plus this payment, even though it is not taxable. I am having a hard time finding anything on Canlil to either way. The payment is for critical illness insurance. Is one time lump sums for insurance to be included for calculating CS. Thanks for any assistance

  • #2
    I'd go with no. Unless it affects your line 150, then it does not affect CS.
    Personally I'd be inclined to toss some into an RESP for the kid for when they turn 18 or want to go to post secondary, but whatever floats your boat.

    Your ex is blowing smoke out her ass. If you need official confirmation, I'd go talk to a FLIC lawyer to confirm. Typically insurance payouts, inheritences, and/or lottery winnings are not taken into account.

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    • #3
      CS is supposed to be paid according to income, which is usually all in line 150. Although not taxable, this is still income that you are using to support yourself, and in turn should be used to support your kids.

      This money was paid to compensate you, among other things, lost income I believe you are saying - so in that respect, some of the money should be used to support your kids via CS. Especially if your CS is reduced due to the lost income.

      Legally I am not sure what the answer is. And paying more support to your ex may not be the way you want to support your kids with this money, but to me it is pretty clear it is income, and a portion of it should be used to support your kids even if it is a RESP for example.
      Last edited by billm; 01-24-2011, 02:28 PM.

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      • #4
        We asked at the court office and they said it was up to the judge on that one as they didn't know the answer, that critical illness is relatively new. They said the ex could say that if I hadn't got sick, my income would've been xyz, so EI, last years earnings and insurance equal about the same,
        Last edited by frustrated11; 01-24-2011, 03:01 PM.

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        • #5
          CS and daycare expenses were paid out of EI earnings, no arrears generated. Borrowed money to meet other obligations

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          • #6
            If the CI Insurance was supposed to bring your income to the same level as if you were employed full time, then I imagine that any Judge would include it as income.

            If you were injured and NOT compensated, then CS would decrease to match that of your actual earnings.

            Basically if xyz (including CI Insurance) is equal to full time earnings... then you are probably going to have to pay up.

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