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Author Topic: Can CS be paid in lump sum?  (Read 5877 times)

Hardware Queen

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Can CS be paid in lump sum?
« on: Jan 29, 2008, 11:28:30 PM »
My bf's ex told him she's tired of haggling over every $20 copay and school expense. She proposed that they figure out roughly what CS and shared expenses will add up to until their youngest turns 18, and have him pay his share up front. She would sign a Satisfaction of Judgment at that point.

She says that she will always have a low enough income that the kids will be able to go to college for free.

My bf is tempted by this offer, and would love to not have to deal with her any more. However, I wondered what she could be up to. A couple things struck me about this scenario:

1) She is studying for a state exam which will allow her to keep her job. I asked him if maybe she is expecting to get a raise if she passes, and thus doesn't want her CS to be recalculated and go down. She seems too eager for this.

2) This is Oregon, where children attending school become parties to the case. I am betting that the judgment cannot be satisfied until the children are no longer attending school.

3) She is a poor money manager. She bought a house with her share of the equity in the marital home, sold it a few years later, and has lived in an apartment since. She frittered away $25,000 equity on vacations, car, etc. Once she goes through this settlement, will she be able to take him back to court for any further support?

4) I advised him to find a free initial consultation with an attorney and find out if this is a) possible and b) advisable.

Anyone have any insights?


MixedBag

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RE: Can CS be paid in lump sum?
« Reply #1 on: Jan 30, 2008, 08:14:43 AM »
my gut says don't do this.....for the sake of the child.

can't put my finger on it, but I wouldn't do it.

I'd be looking for other Oregon cases where this has been done and considered acceptable.

DHR/CSE might also be a free reference for this type of question right there in your county.   Because they'd be the agency coming after the NCP down the road....but remember, when they talk to you, they represent the child (and more the CP) than the NCP.

FLMom

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RE: Can CS be paid in lump sum?
« Reply #2 on: Jan 30, 2008, 12:18:52 PM »
I can't remember why, but I remember Socrateaser saying to definitely NOT do this. I debated doing this myself at one time and nixed the idea because of his reasons. I do remember him saying that it was smarter if you had the money to do this to put the lump sum into an interest bearing account and still keep paying the monthly CS amount. . . that you'd earn interest on your child support payments.

If you have a free weekend that you can spend online, you could paroose the Socrateaser thread archives and see if you can find it by doing a site search. Wish I was more help.

FLMom

Hardware Queen

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RE: Can CS be paid in lump sum?
« Reply #3 on: Jan 30, 2008, 01:05:33 PM »
Yes, Socrateaser would definitely have been the one to ask about this. I will look it up.

roofus

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RE: Can CS be paid in lump sum?
« Reply #4 on: Jan 30, 2008, 10:21:01 PM »
I wouldn't do it.  I'm in Oregon and she could always go back later and ask for more CS. Doesn't matter what you agree to now, even if you file it with the court.  Been there, done that!

Besides, a lump sum now is worth more than a dollar in the future, so unless she is willing to take that amount and then subtract from it X amount for immediate payment, it's a really bad deal for him.

So she's tired of haggling over very copay and school expense?  Tough. The court doc covers the copay and school expenses should be covered by the CS he already pays.

Exactly where is it that she is planning on sending the kids to college that it would be free?  You do know in OR that divorced parents can be MADE to pay tuition and support if the kid goes to college, right?

OR is an income share state and both his and her income are taken into account when setting CS. Bet if his income increases she will want an increase in CS, but wouldn't want to receive less if her income went up!!!

So I say again: don't do it  don't do it  don't do it.


Hardware Queen

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It's a moot point, anyway
« Reply #5 on: Jan 31, 2008, 12:05:10 AM »
I finally found the answer on a state site by being less specific with my search:
"PLEASE NOTE: You may only satisfy support that was due in the past. You cannot satisfy future support."

I know he got a bad deal by agreeing to cover half of the kids' school expenses and activities. But he was thinking of the kids. He's one of those NCPs who ends up paying for lessons and sports because otherwise they'd go without.

IThe kids will most likely all end up at community college. None of them are terribly interested in scholarly pursuits. I think what she meant was because she has such a low income, the kids will get good financial aid.

And, yes, I know Oregon Child Attending School law pretty well by now. The youngest of my four kids is almost 20. I just didn't know whether a judgment could be satisfied in advance. Apparently not!

MixedBag

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RE: It's a moot point, anyway
« Reply #6 on: Jan 31, 2008, 07:26:39 AM »
Didn't think to get you to look at the laws to see if they prohibit this.

Moot maybe, but good point.  Learned something new.

Hardware Queen

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RE: It's a moot point, anyway
« Reply #7 on: Jan 31, 2008, 07:01:57 PM »
Actually, I looked more closely at the source I quoted, and it is addressing cases that go through the state. NOWHERE can I find whether it applies to cases where the parties deal directly with each other.

My bf has decided to disregard my caution that you should never trust anyone you're divorced from, and pursue this. I'm guessing that they'll go through a bunch of calculations and bargaining, and then find out from the court that it is not allowed.

roofus

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RE: It's a moot point, anyway
« Reply #8 on: Feb 01, 2008, 08:11:16 AM »
You wrote: it is addressing cases that go through the state. NOWHERE can I find whether it applies to cases where the parties deal directly with each other.

Doesn't he plan on filing the change with the state?  This is crazy. He's going to pay her this lump sum and in 2 or 3 years she's going to ask the state to make him pay CS..  This lump sum will not be considered CS by the courts. The courts will then award her CS and he will start paying it all over again.

Tell him to use his other head.

Hardware Queen

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If it sounds too good to be true
« Reply #9 on: Feb 01, 2008, 11:44:30 AM »
it probably is! The offer is 75% of his projected future CS payments/co-pays/etc. if he pays them up front.

I suspect they'll get an agreement drafted and be turned away at the courthouse. I don't think you can satisfy a CS judgment when the children are still minors. Just can't find a statute that says so.

 

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