Voluntary severance as underemployment?

S

stripes

New member
I'm wondering about a possibility which might or might not materialize over the next few months. Wondering if anyone has any thoughts.

The setup: I have 50/50 shared parenting with table offset. I am the net payor because my income is higher than ex's, though not by much (47%/53% ratio).

We work for the same employer, same job title, same qualifications, years of experience, tasks, everything. Our employer is going through difficult financial times, and we're looking at some significant downsizing/layoffs. I have reason to think my position is secure (long story which isn't really relevant). I also have reason to think ex's position is not so secure (again, long story). Our employer is now offering a voluntary severance package with a large payout, to try and get people off the payroll, before moving to involuntary severance, aka layoffs.

I am wondering what will happen if ex either takes voluntary severance or is laid off, and what impact that would have on S3 payments. The scenario I am concerned about is that he might take the voluntary severance package, terminate his employment, claim no or much reduced income, and try to make me responsible for paying the full table amount. This would be a better financial deal for him than having his position terminated, should things come to that. I'm concerned about ending up in the situation of some other posters here who are working to support an ex who is choosing not to be employed, or not employed to his/her fullest ability.

My question is: has anyone heard of voluntary severance being considered deliberate underemployment (not sure of the correct legal term)? I understand that if he is terminated, his income will drop and I will need to pay a lot more CS, and I accept that that's how the law works. However, are things different if he chooses to leave his job in advance of being terminated?

Other possibly relevant info: His/our position requires a lot of specialized postgraduate training, it would be almost impossible to find an equivalent job in the same field in the city we live in. His household income is much higher than mine because of the presence of a second (high-income) earner (although I realize that's not relevant to CS).
 
If he doesn't take the voluntary severence, in your opinion he will be laid off anyway.

You know that he will have no real choice about retaining this job.

In any case, whether someone is terminated or quits, they are expected to work and support their children and themselves. The issue will be whether there is comparable work available in the area.
 
Mess, I don't really know whether he would be terminated or not. I hope for everybody's sake that he would not be. It's one these be-very-afraid scenarios where everyone is worried about their job and I'm hearing lots of people wondering whether they should take the severance package or take their chances on keeping their job in its present form. I'm wondering what the impact on my finances would be if he quit rather than lost his job. I'm hoping it won't come to pass.
 
Your financial stability should never be wrapped up in your ex's, or dependant on child or spousal support. If this is th ecase, you need to consider how you are managing YOUR finances and make whatever changes need making BEFORE you find yourself in a pickle.

Yes, easier said than done, but vitally important.
 
My financial stability is good, which I am really happy about achieving after the financial tsunami of separation and divorce. I get no financial support or gifts from anyone, but I earn a salary which allows me to support my daughter, including paying offset CS and the majority of S7 expenses, plus putting ~$800 into retirement savings and RESPs for us every month. I put a lot of time into my job, keep my eye on promotion possibilities, live within my means, and my only debt is mortgage on a small condominium (no credit card debt, no lines of credit, no car loans, no other loans, nothing). However, if CS went up to $1200/month because ex lost his job and had trouble getting another comparable one, I'd be destabilized. That's why I'm trying to think through the whys and wherefores now, before the worst happens.
 
Well, again, ultimately it really doesn't have anything to do with whether he takes the buyout or if he is laid off.

No one can be forced to work at a certain job, or be forced to stay in a certain job by the courts. This would be a violation of the Charter among other things.

The question would first look at the voluntary buyout, but the courts are not stupid. These things occur when the alternative is a layoff. This greatly mitigates his choice.

But really, either way, he is still expected to work. If he doesn't get another job, then he will be imputed a wage based on his historical earnings if there is comparable work available.

If you live in a small town and the major factory is cutting back staff, there may not be a comparable job. In which case he would be expected to work, but if the job he finds pays less, then there would be little chance of imputing a higher wage.

Furthermore, there is case law to support someone wishing to change careers for personal reasons, and taking a reasonable pay cut. In such a case the person would obviously have to explain the reasons. If your ex can explain himself, the courts will generally accept this.

So it's hard to give you a definitive answer without more knowledge of what job is, what employment is like in your area, what skills and experience he has to offer, etc. But generally speaking, he can't just take the buyout and then claim $0 income.
 
not to throw a wrench into your thought process but if there is one thing I have learned....never think your job is secure. You should also be thinking of what would happen if you lost your job also. Hope for the best, prepare for the worst.

A guy I know got let go from his job after 30 years due to a take over and his boss above him took a pay cut and took my friends position.
 
Mess said:
So it's hard to give you a definitive answer without more knowledge of what job is, what employment is like in your area, what skills and experience he has to offer, etc. But generally speaking, he can't just take the buyout and then claim $0 income.
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Yes, that was the scenario I was concerned about. Ex is one of those types who's made a hobby out of thinking of ways to get more money out of me, and I could see this option appealing to him - take the buyout, live off it plus his wife's income for a couple of years with increased CS, and then maybe look around for something. Or maybe not. Like I said, I'm hoping it won't come to that and everyone's job will be secure.
 
I'm definitely thinking of that. I'm about as secure as I can be - seniority, high productivity, good reputation, etc., all backed up by a strong collective agreement - but I'm aware of the possibility it could all go sideways because of things outside my control.

standing on the sidelines said:
not to throw a wrench into your thought process but if there is one thing I have learned....never think your job is secure. You should also be thinking of what would happen if you lost your job also. Hope for the best, prepare for the worst.

A guy I know got let go from his job after 30 years due to a take over and his boss above him took a pay cut and took my friends position.
Click to expand...
 
My view is that severance packages are intended as income replacement while the laid off person seeks new employment or retraining. So I would argue that CS not change until his severance runs out. So if they pay him two years worth of salary as severance, then use his previous income as you are now for the next two years. By then, he'll either have found a new job, in which case you know what income to use from that point onward, or he'll be living off his partner, in which case you impute him to minimum wage, or more if you think he could reasonably find a better job.
 
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