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#17951 - 06/24/05 08:21 PM One Time Payment - how is CS calculated?
2ndWife Offline
recently joined

Registered: 01/12/05
Posts: 7
My DH was just discharged from the military with a one time severance payment. His new job pays less than the military. If he filed for CS modification, how is that one time payment calculated into the equation???? He is afraid to file without knowing this information.

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#17952 - 06/24/05 08:50 PM Well, technically it is income [Re: 2ndWife]
Melody Offline
Carpal \'Tunnel

Registered: 06/03/04
Posts: 10102
Loc: California
but it isn't like an annual bonus...where the amounts may differ from year to year, but the employee likely gets the bonus routinely...so I'm not sure if they would figure it in. They may simply require a lump sum portion of it to go to the children....and then use his salary only for his new job for the CS. How much lower is the salary of the new job? And...is it not possible for him to get a job earning a similar salary as his military pay? That is a problem, because the court may view him as being voluntarily underemployed....meaning he could earn more but is choosing not to in order to keep CS payments low.

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#17953 - 06/24/05 08:58 PM Re: Well, technically it is income [Re: Melody]
2ndWife Offline
recently joined

Registered: 01/12/05
Posts: 7
Well his new job is almost the same pay but a lot more taxed income (a lot of the military pay was untaxed) so that will make a difference in the CS calculation.

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#17954 - 06/24/05 09:05 PM ok....as long as the income levels are similar [Re: 2ndWife]
Melody Offline
Carpal \'Tunnel

Registered: 06/03/04
Posts: 10102
Loc: California
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.

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#17955 - 06/24/05 09:52 PM Re: ok....as long as the income levels are similar [Re: Melody]
2ndWife Offline
recently joined

Registered: 01/12/05
Posts: 7
Thanks for the reply. Yes, DH will have to talk to a lawyer for sure but sometimes you even get different answers so I wanted to know if anyone had been through something similar... It's a lot of money ($130,000) so he doesn't want to do anything until he has a good understanding of the consequences.

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#17956 - 06/24/05 09:57 PM What part of CA are you in? [Re: 2ndWife]
Melody Offline
Carpal \'Tunnel

Registered: 06/03/04
Posts: 10102
Loc: California
You may want to seek an attorney who may have had dealings with clients involving severance packages. San Francisco Bay Area...will have more likelihood of having some experience with that..over...let's say Frenso or Bakersfield. Los Angeles, also...due to the entertainment industry and termination of contracts. You might also consult an attorney who has had experience with former military clients...is it customary for someone to receive a severance package upon leaving the military? Perhaps this will help. I'd give you my lawyer...as I love him to pieces...he's never let me down...but we may be too far away from you.

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