Help?!?!?!
Ok.. so I was looking up Military retirement benefits, although my dh is a long way off from that.. What I found would be great for a non-blended family.. not so sure it would be great for us.
Turns out at year 15, a service member my decide which retirement package they choose to go with. one of them is a straight payout of benefits at a percentage of the pay (36 highest months average) and the other you get a 1 time payment of $30k to do with as you choose, and then your retirement is lowered by about 10% for the earliest they can get out.
The problem w/the payout.. He will still be paying child support, and even though its his retirement income paid out early, I am thinking he would still be on the hook to pay a % of that to the CS.
Not to be a poor sport.. but she already gets enough. A $1k a month goes to the skids.. she doesnt work, because the child support is her paycheck.. and she waived all rights to his retirement.
What do you think?? Do you think the payout would be considered a salary and therefore subject to the CS calculation?? I am thinking about NOT telling him about this option.. or telling him about it, and then letting him know that should would be entitled to some. As it is.. he isnt retiring until they are emancipated.. as I would be aweful resentful should I have to pay his CS while he is going to school, or takes a lower paying job.
HELP!!
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Wow...
This is tough. I would think that the pay out would be considered retirement and she would not be entitled to any of it, much like a 401K that someone signed off on. So as long as he is paying the court ordered CS amount, there's no way for her to even know about the 30K payout. I'm assuming he's paying a set amount and not a percentage right?
I would double check with an attorney or accountant at the very least on this one before you decide.
Peace, love, and red wine
He is paying a set
He is paying a set amount..
Not sure.. she is pretty lazy.. so it is possible that she wouldnt be looking up to see what his retirement benefits are.. but.. could you imagine if she did??? YIKES!! I already calculated and 30% is $9k...
I guess I should have my dh consult the military legal department and have them let him know how its classified and what her rights if any would be to the $$.
I was just thinking that we could put that into an IRA so that he has more of a retirement.. I have over $20k in an IRA.. he has NOTHING!
Well...
The money is retirement pay, regardless of which option he chooses, but retirement pay IS divisible as a marital asset. She could have asked for a portion of it and gotten it in the divorce, but if she didn't, I don't think she can come back now and get it as her share of a marital asset.
His CS amount is what it is and she could ask for it to be raised at any time, regardless of his military status. As long as he's supposed to pay $1000/mo and not a percentage of his salary, it won't change unless she petitions for more $$$. I think the potential for CS to be raised and the decision as to which retirement plan to select are two separate issues. She can always come back and ask for more CS and that money, regardless of how/when he gets it, can be considered when calculating his obligation. CRSC, CDRP and retired pay are all considered as earnings on which to base CS payments. Only VA disability pay can not be considered. She could ask for more, and possibly get it, whether he takes the pay-out, doesn't take the pay-out, retires, doesn't retire, etc. Everything is dependent on whether or not she goes back to try to get more CS. If she is successful, they will raise the monthly amount, but I doubt that they will make him give her a big chunk of his pay-out unless she's supposed to get it as a condition of their divorce property settlement. Since she waived all rights to it, she can't get it as a lump sum, although it COULD be considered as basis for raising the monthly CS amount.
My DH retired from the military a couple of years ago. He had to make the same choice. He did NOT choose the lump sum pay-out and we have no regrets. I would do the math. Which would give you more in the long run, the lump sum pay-out or the regular payments? Make sure to take into consideration the COLA and "raises" that we get in the retired pay. You may end up with more $$$ if you don't take the pay-out. Or you may choose the pay-out and invest it in something that would yield you a higher return than the regular retirement pay would. It all depends on your situation and your plans for the money. For us, the lump sum pay-out would only have made sense if DH lived less than 16 years or so. Being that he retired at 38 with 20 years in, he'll hopefully live another 30+ years, which means he would have lost out big-time in the long haul if he'd taken the pay-out. We chose the higher monthly payments, which is working out for us.
♥ Georgia ♥
"Good men don't just happen. They have to be created by us women." (from ROSEANNE)
Georgia.. Thank you for
Georgia..
Thank you for that.. I guess I was at the beginning stages of figuring out what would benefit us better.. I had not taken into account what would be the long term affect..
She waived all her rights to alimony and his retirement in the divorce.. she instead opted to be put through school to earn a degree.. that she used for approx. 6 mths before finding her next meal ticket to marry. She once told me that she waived the retirement because she figured she would be earning a lot more than him, and didnt want him to go after her for alimony.. (HA.. she cant hold a job due to her attitude!)
His CS is a set dollar amount not a percentage of his income. I guess I was confused if she could request a CS change, would it be retroactive? Or when you petition for a change is it from the change date forward.. and do they go back so many years to see what the income was? I have no idea how this truly works. I did bump up the payment once, when I went onto the CS website for the state and calculated what she should be getting.. it was $20/mth more than the divorce decree. It comes out of his Pay direct to her and is titled CS.
Thank you for your help..
If they increase it...
...it could only be retroactive back as far as the date she filed for a modification, I think. She couldn't file a petition this year and ask for an increase in CS for last year, for example. It would only be for the CS amount going forward from the date of her new petition.
As for income, the last time we did it, they looked at both parties' most recent pay stubs and that was before DH retired. It probaby varies from state to state how far back they go, but I don't know how a lump sum like that would play into it. They may look at what he would be making without having gotten the lump sum and base it off that amount, rather than the 10% less he would receive if he took the lump sum. Either way, it's income that can be considered if she requests a modification to raise the CS amount, but it would raise the monthly payment, not generate a large lump sum for her.
If you take the pay-out, they will consider that as part of his income for the year and they may base his CS payment on it. His monthly CS payment may be increased, but his monthly retirement check will be less due to the pay-out. You'll have to manually ensure that the amount of the increase comes out of that lump sum, if you're relying on that income to make the CS payment. Does that make sense? In other words, I'd be careful of taking the pay-out, because that would reduce your monthly retirement check, and if she does go back for more, you'll have less coming in monthly to pay it.
♥ Georgia ♥
"Good men don't just happen. They have to be created by us women." (from ROSEANNE)
Good point. I think I will
Good point. I think I will advise him against the pay out.
Love that they could take her pay stubs into the calculation.. IF SHE HAD PAY!! she is able to work, yet does not.. she floats from PT job to PT job.. to the tune of 1 day a week.. This has only been the last year... and she is on her 4th job. Before that she chose to not work. Not sure how her new husband feels about it.. since they are always complaining they dont have enough money.
The only reason we have money is because I work. If I didnt work, and we relied on my dh's income.. we would be broke too.
Not wanting to work is no excuse.
There should be a bare minimum amount of support that she HAS to supply, regardless of how much she wants to work. That's how it is in my state. You can't choose to not support your kid. She should have to pay something.
♥ Georgia ♥
"Good men don't just happen. They have to be created by us women." (from ROSEANNE)
I'm staying at home
In Ohio since I don't work then the total amount both parties contribute goes down so I would get less. But I get such minimal CS (200/month total for both boys)that there's no way my ex and his wife would try to go back to get it reduced. The only way a reduction happens is if there is a 20 percent difference for either party.
Peace, love, and red wine
She should, but doesnt..
She should, but doesnt.. She married someone.. and now he carries the burden of supporting her, the skids, himself and their child they had together.. Her contribution to that family is dh's cs payment. If you can believe it.. she even once said to me how the CS wasnt enough to cover groceries for a family of 5.. I said.. ummm.. ok, I think its meant to be full support for 2 people... sd & ss.
She is so lazy.. that her house is never clean, the skids clothes are always stained as she does not pretreat any of them.. and her yard is a mess as well. No one there ever puts anything away. Its utterly ridiculous.
I am so tired of her selfishness.. its not even funny. You might be thinking.. well.. she probably does a lot w/them then.. right??? WRONG.. she doesnt take them to the park, bike riding (their training wheels are still on the bikes, and DH & I taught them how to ride bikes 3 yrs ago!!!).. she got them rollerblades.. and they have only used them IN THE HOUSE!!!
I am so tired of the insanity.. I also dont want her to have more of my dh's income if she isnt even willing to take the skids to the park.