Alimony ends, CS increase?

[doc2b]

What is the name of your state? MI

Hello, everybody. Just another silly question about child support formula calculations.

Here's the situation: My husband is done paying alimony on May 1st of this year, and is kind of anticipating his ex to petition for a modification in CS (increase) when alimony is done. Don't read this wrong, he's not trying to get out of paying, everything he pays now is over the CS recommendations because his ex-wife is now low income and he is making sure he's taking care of the kiddos.

We've looked over the Michigan CS Formula manual and tried doing all of the calculations to see what kind of a change he may be looking at, but got stuck on the net family income part. We know how much he makes, and he knows that his ex has no income from employment and is taking in SSI for herself and the kids (from what she's told him, anyway). It is clear in the manual that this doesn't count as income for her, and her alimony is being paid as IRC Section 71b payments, so that doesn't count as income, either (as far as I could tell). So, just to clarify...he only uses his income to calculate the total net family income (which I'm assuming is CP and NCP combined from how it's worded), this is also the same amount he uses for his own personal income (CP), and his ex's is listed as $0 under NCP...does this sound correct?

If so, then he's currently paying about $100 more per month than the calculator recommends, so hopefully he'll be all set if this situation comes up. I don't know if the courts consider the termination of alimony to be a significant change in circumstances to modify child support, so he and I might be assuming for nothing...but just in case, doesn't hurt to be prepared.

Thanks for any insight, it's appreciated!

 

[TinkerBelleLuvr]

How long since the last modification? If more than 4 years, then it tends to go thru automatic review where they send questionnaires to both sides and they see if a modification hearing is warranted.

If less than 4 years, then it would be the CP who would have to request it.

 

[TinkerBelleLuvr]

make sure that the payor doesn't just stop the payments, but files the appropriate paperwork for it to be terminated with FOC.

 

[texastepmom]

can he impute an income to the ex?

 

[CourtClerk]

can he impute an income to the ex?

Ex seems to be on SSI, therefore disabled in some way, shape or form.

 

[doc2b]

How long since the last modification? If more than 4 years, then it tends to go thru automatic review where they send questionnaires to both sides and they see if a modification hearing is warranted.

If less than 4 years, then it would be the CP who would have to request it.

There has never been a modification. The divorce and custody agreement went into effect December of 2006.

Just to clarify, also, the use of CP and NCP is based only on the number of overnights when I'm referring to the parents (I'm still confused on the terminology, but that's how it's worded on the support calclulator). Husband is technically the primary custodian with regards to the amount of physical custody, but they are joint legal and physical custodians. I don't know if the courts consider him CP since they have joint custody, but he is the one paying support to their mom.

And yes, she is recieving SSI for herself and the kids, and has been for years...it was several months after the divorce was finalized that she quit working at her job, so I guess he could ask them to impute income since she was employed before and just after the divorce, but I don't think that would matter (I don't have a clue, just guessing)

He has no intentions whatsoever of stopping payments at any point, or filing for a modification. He's just kind of waiting in anticipation to see if she's going to file to modify once her alimony runs out since it's a good chunk of her monthly income and she has quit her job (this is going to leave her with only her SSI, the kids' SSI and child support payments to support herself).

Thank you guys for your input, it's very appreciated!

 

[TinkerBelleLuvr]

Because the X is on SSI, they may not actually impute an income, but will also not consider her to have an income of zero since she actually does get money. From the sounds of it, they are charging dad child support because of the disparity in their incomes.

As for filing the termination papers, I am talking about the alimony. Look around here for forms to terminate the alimony per the court ordered date.

http://courts.michigan.gov/scao/courtforms/domesticrelations/drindex.htm

 

[doc2b]

Because the X is on SSI, they may not actually impute an income, but will also not consider her to have an income of zero since she actually does get money. From the sounds of it, they are charging dad child support because of the disparity in their incomes.

As for filing the termination papers, I am talking about the alimony. Look around here for forms to terminate the alimony per the court ordered date.

http://courts.michigan.gov/scao/courtforms/domesticrelations/drindex.htm

Thanks, Ginny!

Yikes! I'm glad you said that...I asked hubby if his attorneys had ever mentioned having to file to terminate alimony, and he said "never". He's going to look into it, but could it be because he makes all payments directly to his ex-wife? Or does he still need to file to terminate alimony? This is the wording from the JOD:

It is further ordered that Plaintiff (husband) shall make non-modifiable IRC Section 71(b) payments of $XXX per month to the Defendant directly beginning (Date) and continuing at said rate until the death or remarriage of the Defendant, or cohabitation of the Defendant with a member of the opposite sex, or the expiration of eighteen months, whichever occurs first. Upon the first of the above events, Section 71(b) payments shall terminate and be forever barred. The Section 71(b) payments shall not be considered income to the Defendant, and shall not be tax deductible to the Plaintiff.​

With regards to the first part, they declined FOC involvement and his attorney calculated support amounts during the divorce. My husband's attorney used $0 income for his ex-wife when calculating, now I'm hoping she didn't make a mistake (too late to fix that). His ex has about $13,200 SSI per year for her and the kids (last known amount from taxes in 2006) and at the time of divorce was making $6000 per year at her PT job, but had about the same amount of expenses to maintain it, so it was counted as $0 profit ($0 income). And, like stated above, the spousal support isn't counted as income, either. It sounds weird to me, but I don't know the law...seems like some kind of income should have been counted, but never was.

I'll look through the forms on the link you sent, I appreciate the heads up!