Job changes / one-time lump sum

What is the name of your state (only U.S. law)? Texas

I am the father to 2 girls (now 7 & 9). In my divorce case, the judged awarded me 50% custody of the girls, however their mother is the primary custodian. No problem with that whatsoever - certainly beats the 'ever other weekend' scenario. I am also responsible for child support still.

The company I work for is being taken over. Continued employment opportunities exist, but are not realistic, since it involves moving to another state ... and away from my girls. As part of the eventual take-over, there is a sizable severance package. This sends my head spinning when I think about how this one-time lump sum income will be treated come time to review the child support amount to be paid to my ex.

Here's some other info.

With the economy the way it is, I don't know that I will be able to find another job that compensates as well as I am now.

I was left with the house that I'm upside down on (essentially due to the cost of realtor fees). This has now been leased out since I cannot afford to live there. The rent almost covers mtg/tax/HOA dues.

My CS obligation is the standard amount - 25% considering 2 children. However, the proposed decree wasn't worded with the 50/50 custody in mind (I had poor legal representation in this area). And yes, 50% is a true 50% - alternating 7 days with each parent.


Questions:

Will the one-time sizable lump sum be factored in come the next CS review or will the judge/court only treat my income as being my then salary?

Does the judge/court factor in the current state of the economy when considering 'earnings potential? In other word, just because I'm on $X now, if I end up earning an amount, say 25% less (realistic, since I current get a generous bonus - which was factored into my income at the time via my previous W2s), will I likely be tasked with continuing to pay support as though I was on my old income level?

Will the lease income work against me (be considered as income to include when factoring revised CS payment)? The house is really a liability at the moment since I cannot afford to sell and cannot afford to live there (I'm renting elsewhere for 2/3rds less payment), so there is no 'profit' per se.

What chance is there the judge/court will consider that I have 50/50 custody and will reduce my CS obligation percentage, especially when I have to front other expenses (food, day care, clothing, utility, etc) that wouldn't have been there were I a weekend Dad?


Note: I don't have a problem paying child support. I've accepted I would have to from the get-go. I just want to not live as tight as I do for the next 9+ years paying more than is necessary. Right now, I see myself paying more than the legal requirement.

Thanks in advance!
Red

PS: I'm looking for constructive feedback please. Men haters need not respond.

RedLimey said:

Questions:

Will the one-time sizable lump sum be factored in come the next CS review or will the judge/court only treat my income as being my then salary?

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It shouldn't be. For example, if you earn $2,000 per week and then received a 6 month severance package ($50 K) the last day of December, they would not consider your monthly salary to be $58 K in December.

It could, however, be considered in other ways. For example, let's say that you were able to get a new job earning $1800 per week but you had the $50 K severance payment. The court could use that as justification to consider imputing you the full $2,000 that you were earning before. Probably not likely, but there is some flexibility.

HOWEVER, the most likely scenario is that the money would be divided as a part of property division.

RedLimey said:

Does the judge/court factor in the current state of the economy when considering 'earnings potential? In other word, just because I'm on $X now, if I end up earning an amount, say 25% less (realistic, since I current get a generous bonus - which was factored into my income at the time via my previous W2s), will I likely be tasked with continuing to pay support as though I was on my old income level?

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The guidelines are fairly loose. In most states, the judge can impute what they reasonably believe you could be earning. If the job loss were voluntary, they could simply impute your former salary. In your case, the job loss was involuntary, so it's not quite as easy. It will depend on a number of factors. You can bring in newspaper ads. Better yet, bring in an expert witness. Or simply state that you've tried diligently to find a comparable job. Ultimately, it will depend on the evidence you are able to provide to support your position.

RedLimey said:

Will the lease income work against me (be considered as income to include when factoring revised CS payment)? The house is really a liability at the moment since I cannot afford to sell and cannot afford to live there (I'm renting elsewhere for 2/3rds less payment), so there is no 'profit' per se.

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Lease income can easily count against you. HOWEVER, you can argue that only the portion of the lease in excess of mortgage and taxes should be counted as income to you.

RedLimey said:

What chance is there the judge/court will consider that I have 50/50 custody and will reduce my CS obligation percentage, especially when I have to front other expenses (food, day care, clothing, utility, etc) that wouldn't have been there were I a weekend Dad?

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The court will use guidelines. In your state, the guideline amount does not factor in time share, so you will have to ask the judge to include that. For 50/50 situations, it's not uncommon for the judge to consider that. However, be aware that if your income is greater than your ex, you could still end up paying CS even with 50/50.

RedLimey said:

Note: I don't have a problem paying child support. I've accepted I would have to from the get-go. I just want to not live as tight as I do for the next 9+ years paying more than is necessary. Right now, I see myself paying more than the legal requirement.

Thanks in advance!
Red

PS: I'm looking for constructive feedback please. Men haters need not respond.

Click to expand...

Lose the attitude when you're asking for help.

Thank you for your input/advice. Greatly appreciated. Gives me a little peace of mind that I might not be put in an impossible position.

It's nice to see someone choosing their family over money/career.

Regarding rental income:

HOWEVER, you can argue that only the portion of the lease in excess of mortgage and taxes should be counted as income to you.

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It is valid to argue that net after mortgage, taxes, if LL provided property insurance, sewer & water charges (my tenant runs up over $100/mo in water/sewer costs!) and maintenance costs is what should be counted. IF he's feeding it, there may be negative income.