HomePSC lump sum and child support
2 posters
Page 1 of 1
PSC lump sum and child support
by snipsfan Wed 04 Sep 2019, 1:20 pm
I have just received a favourable decision in regards to my pain and suffering compensation.
I have the choice to take a monthly amount for rest of my life or a 1x lump sum payment.
my question is- if I was to take the 1x tax free lump sum payment will this affect my child support payments?
just curious if anyone else has gone through this situation and what the outcome was.
thank you
I have the choice to take a monthly amount for rest of my life or a 1x lump sum payment.
my question is- if I was to take the 1x tax free lump sum payment will this affect my child support payments?
just curious if anyone else has gone through this situation and what the outcome was.
thank you
snipsfan- Registered User
- Posts : 2
Join date : 2019-09-04
Re: PSC lump sum and child support
by Trooper Wed 04 Sep 2019, 6:50 pm
The way it use to work is the pension portion of your Veterans Affairs income rather in pension form or lump sum form can be used to add to your income for child support calculation purposes. Just the pension portion, not other benefits within Veterans Affairs...Attendance allowance, Exceptional Incapacity Allowance, VIP, Additional Pain and Suffering Compensation ect... Tax free is grossed up to the taxed level, and then added to your income from which the calculation of percentage for the amount that is paid out for child support.
I'm on the old system, and because at the time of my split-up my tax free benefits were already in place, therefore were grossed up for calculation for child support. The Judge in my case was the one who after a couple of years ordered that only the pension portion of Veterans Affairs benefits could be used for child support. The law states this across the board across the Country.
With tax free payments that come after the split up I would think it would be hard to know you received such payments. But in the end it's the welfare of the children that counts. Lawyers for some reason don't seem to understand much when it comes to child support where the spouse has paid benefits from Veterans Affairs.
One other thing to consider is the highest they can go is $1,150 a month, and that would be at 100% lump sum. So half that at 50% would be $575. So at 50% lump sum only $575 can be used to add to your Monthly income for the percentage calculation for child support.
It's been awhile since I've dealt with child support payments with respect to Veterans Affairs. So what I wrote above comes from my own personal experience that may or may not stand today. So don't take this as the law of the land today. Awhile back there was an overhaul to the Federal child support guidelines as I can remember. I would do some more research on the lump sum with reference to child support just to be on the safe side.
I'm on the old system, and because at the time of my split-up my tax free benefits were already in place, therefore were grossed up for calculation for child support. The Judge in my case was the one who after a couple of years ordered that only the pension portion of Veterans Affairs benefits could be used for child support. The law states this across the board across the Country.
With tax free payments that come after the split up I would think it would be hard to know you received such payments. But in the end it's the welfare of the children that counts. Lawyers for some reason don't seem to understand much when it comes to child support where the spouse has paid benefits from Veterans Affairs.
One other thing to consider is the highest they can go is $1,150 a month, and that would be at 100% lump sum. So half that at 50% would be $575. So at 50% lump sum only $575 can be used to add to your Monthly income for the percentage calculation for child support.
It's been awhile since I've dealt with child support payments with respect to Veterans Affairs. So what I wrote above comes from my own personal experience that may or may not stand today. So don't take this as the law of the land today. Awhile back there was an overhaul to the Federal child support guidelines as I can remember. I would do some more research on the lump sum with reference to child support just to be on the safe side.
Trooper- Administrator
- Posts : 1275
Join date : 2017-10-07 -
Re: PSC lump sum and child support
by snipsfan Wed 04 Sep 2019, 7:34 pm
thank you very much for the response. its so complicated and its hard to find a clear answer. thanks for the input I appreciate it!
snipsfan- Registered User
- Posts : 2
Join date : 2019-09-04
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum|
|
|