then he shouldn't have to worry too much about the underemployment thing. The higher taxable income will definitely end up in some sort of a reduction in CS...but it may not make a huge difference.
so the only real problem is how the state will deal with the lump sum payment. Well, my ex is federally employed..and he is allowed to "sell back" to the government, up to a certain quantity of his earned annual leave every year. While we were married, he used to sell back two weeks of leave...since he was earning the maximum (5 weeks)...he figured he'd rather have the cash equivalent of the 2 weeks to use to pay for something. That was considered income and added to his gross earnings for the year. But since yours is severance...there is a huge difference. There must be some provisions somewhere as many people who are employed in the electronics and tech industry out here have severance packages. But I'd bet that since they were intended to ease the person's transition to new employment, it might not be viewed as a bonus, but as a continuation of salary...and it just so happens that his new salary kicks in prior to the severance running out. I think you need to ask a lawyer about this.