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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 05-14-2009, 12:59 AM
ultraviolet3 ultraviolet3 is offline
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Default Tax Refund and Vacation pay

I'm in a common law relationship which has come to an end. We are waiting on our tax refunds. He said when our cheques come we should put them on the line on credit to pay it down. Here is my problem.

All our debt, is his. I know that i have to still pay half, but for lack of better words that sucks. The line of credit has 5k on it, so i have to pay $2500.

I make more money. We have 2 kids so all the child deductions were of course put on my return. My return being $1100 and his is $200.
So if i were to do what he says our line of credit would be paid down to 3700 and then my half would be $1850. The way i see it is i have now actually paid more then half.

My question is, is my tax refund considered joint money? he says once it's in the bank our savings are 50/50, therefore i don't want to deposit it when it comes.

NEXT i get paid a lump sum for vacation in june. I said so you consider my vacation pay is also 50/50, he said yes. When i am on vacation i don't receive a paycheque, hence the lum sum payout each june.

Any help would be greatly appreciated
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Old 05-14-2009, 02:46 AM
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billm billm is offline
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Your tax refund is for 2008, so if you split after 2008 it should be shared equally. That assumes that your CL relationship warrents splitting everything in 2008 equally.

Same for vacation pay.

It really is not complicated if you simply consider the dates invovled.
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Old 05-14-2009, 07:08 AM
standing on the sidelines standing on the sidelines is offline
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k all the child tax deductions were put on your tax return so it is only fair that he gets some of the money also. As for the vacation pay that will be coming in June after you have already decided to separate so I am thinking that should be yours IMHO. I take it all money has been going into a joint bank account?? Maybe now is the time to open one of your own so he cannot clean out the joint account and leave you with nothing, especially when you make more money. Use the tax refund for the joint debt but put your vacation pay into a new account where you are the only one on the account. That way in June when you do not get a pay you can draw on it.
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Old 05-14-2009, 08:30 AM
Foredeck Foredeck is offline
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The tax refund is income that you earned in 2008, it's not a payment that was earned after the separation.

So, it should be split 50/50. Plus, it sounds like most of the refund is based on the tax credit for your children. That would make it even more 50/50 in my opinion. Imagine if he received a tax refund from 2008 based mainly on credits he could have taken.

As for the line of credit, it's only 2500$. Do you want to fight over it?

As for the vacation, it's time accrued. If the vacation pay was earned during your relationship, he could argue that half is his. This might be minimal, depending on the date of the separation and when the vacation time is calculated.
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Old 05-14-2009, 09:38 AM
ultraviolet3 ultraviolet3 is offline
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thanks for the responses.
there is more debt then the 5k...the total is a little of 12k. The remainder is for a vehicle he bought, that i now drive.
My tax return still i feel would have been higher even if the kid deductions weren't on it.
As for my vacation pay. He's salary so he gets paid while he's off. I don't. my vacation pay is my pay for that time...is he going to sign over half his pay during his vacation? I hardly think so. I am just so irritated by this whole thing.
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