hadadeuce said:
Update, wife has moved more than 150 miles away but in same state. My company is going to relocate me this summer, and maintain cluse to my last years pay. Thus we have a house that is still for sale, and no Dissolution agreement filed yet.
Countered at $3500/mo for 36 mos, 850/month child support, 50% of 401K, 50/50 split on house after her premarital money (she put down $25,000 gift from her parents while we were married, counted as premarital asset), I pick up court fees. They responded in a rage, she was ready to file that day. I like my lawyer but he really gets under the skin of my not-soon-enough-to-be ex which is good and bad. He suggests I offer to buy her out of the house, but my savings would be tapped out.
Their reply back to us at $5500/month for 42 months, 890/month child support, 100% of 401K, take it or she files for divorce.
I would like to go back at $5000/mo in spousal for 42 months non-modifyable, (this is 1/3 the term of marriage), $890 in child support (based on state of Ohio calculator), 50% of 401K. I know the non-modifyable part puts me at a huge risk if I become unemployed, but it could save me a lot if I continue to grow my income at the rate I have been. What about offering her the house in a trade for the 50% of my 401K? The net $ to her would be about the same. Any input?
Ok...please listen to me and listen to me carefully....because its unlikely that you are going to get this same perspective from other posters....because they are not tax experts.
Remember this...alimony is tax deductible...child support is not. At your income level that is EXTREMELY significant.
Despite what the OH child support calculator says...if this went in front of a judge your wife could easily get significantly more than what you are offering in child support. The average child support amount is 17% of gross income for one child. 17% of your gross income would be 3258.00 per month. Between federal and state taxes that means that the child support would actually cost you at least 5430.00 a month, if not more.
She might get significantly less alimony if it went it front of a judge. However, 5500.00 in alimony would cost you less than 3300.00 in true income.
So, lets calculate that out.....
5500.00 = 3300.00 Alimony
890.00 = 1483 Child Support
Total: 4783.00 Total net cash outlay
3258.00 = 5430.00 Child Support
3000.00 = 1800.00 Alimony
Total: 7230.00 Total net cash outlay
Even if the figures are completely reversed:
3258.00 = 5430 Child Support
890.00 = 534.00 Alimony
Total: 5964.00 Total net cash outlay
Now, the bottom line is that as soon as alimony ends she is going to ask for a child support increase...and she will most likely get a child support increase unless your income reduces. That is reality. She will also certainly fight for more child support if you nit-pick on alimony.
She and her attorney are actually being incredibly stupid for offering you this kind of structure for the next 42 months. If they had any sense they would be pushing for far more child support and less alimony.
So....you have a choice for the next 42 months...MAKE THE SMART ONE....because once alimony ends your burden is going to be non-tax deductible child support.
Here is my suggestion...give in on the 5500.00/month for 42 months. (with your current income level its not worth being locked into 5000.00 a month if something goes bust AND its a major tax advantage)....yeah, maybe she could ask for more if you make a lot more....and maybe a judge would give it to her...but its not that likely....she would be far more likely to go for more child support and its far more likely that a judge would give it to her.....and its likely that she wouldn't rock the boat at all for that 42 months.
Agree on the 890/month child support because that is significantly to your advantage for the next 42 months.
DO NOT give in on 100% of your 401k (unless its really low in comparison to your income)....because no judge would give that to her. However if its negligible compared to your income that might be something to give her a "victory" over....remember...she and her attorney are being VERY stupid on the alimony/child support issue.
Agree to 50% on the house...because a judge WOULD give that to her. Don't offer her more, you don't need to do so.
Like I said...its unlikely that anyone else is going to give you this perspective...because most of them won't look at it from a tax perspective and a true "net" as to how much things will cost you. However, you can easily verify this by paying your last year's tax preparer to re-run your last year's numbers as if you paid 5500.00 a month in alimony. (both federal and state) You will be AMAZED.
