Will a pay cut result in paying less child support


#1

He needs to go to the court house and file a motion to get a court date to ask a judge to have it reduced. It is up to the courts.


#2

Dear SLB02:

Greetings. If you have a court order, the only way he change the same is to apply for a modification. If I were you, I would immediately send him a letter objecting to his voluntary reduction in income and let him know how it will affect you and your children.

If he pays according to a separation agreement, it depends on what the terms of the separation agreement are on whether or not he can reduce his child support.

As far as the 401(k), can you please rephrase your question. I am unsure who’s 401(k) you are asking about. Thank you.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#3

Ms. Fritts:

Thank you for your reply.

My husband has a separation aggreement that simply stipulates that 15% of his income (which would increase since thier divorce in 2000) would have to be given to her. This had never been changed.

He DID recieve a slightly higher salary since then. Not much, but I would guess that she would be entitled to this at some point?

My question is:

  1. His job change would have his salary reduced to $25K. He will receive bonuses and commissions, but this won’t be until he “produces”. He will be a consultant, and his primary source of income - for now - will only be his small salary.

  2. Both parties agreed that thier perspective 401Ks and retirement plans won’t be touched.

  3. My husband will have to rollover his 401K to an IRA and thereby we will have to live off of these funds until he makes more money. Because this will be used, is this considered “income”? Is she entitled to this? I assume that this figure won’t be posted until next year’s W-2.

  4. Should we hire an attorney for this? Obviously, we can’t afford one, but want to make sure of the law, and our rights.

  5. Can this be done on our own? If so, what are the steps to do so?

Thanks so much for your assistance.

SLB


#4

Dear SLB02:

Greetings. Let’s see if we cannot answer these questions:

  1. Not a question.

  2. Not a question.

  3. No, this should not be considered income. No, unless the separation agreement says otherwise specifically, she would not be entitled to any funds which he withdraws from his retirement. Remind him of the tax consequences though and have him pay the IRA at the time of distribution.

  4. Hire an attorney for what exactly? Just send her the new percentage of the new income in accordance with the separation agreement. I would send the new paystub as well.

  5. See # 4 above.

I would advise that you pay for an initial consultation though and have an attorney review the entire separation agreement as drafted and advise you. The money you save from having the legal advice that is tailored to you should pay for the costs of speaking with an attorney about the situation.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#5

In short, my husband is taking on a lesser-paying job next month. He currently has a salaried postiion (of around $40K), and will be taking a salary - for 2 years that is - for $25K. He is leaving his current employer to take on a commision paying job.

He will not be recieving any commission until he passes his training period (up to 4 months). After then, he will recieve a small bonus, and SOME commisions. But he cannot expect to make more money for quite some time until he gets his client base established. This could be a year or more.

He now pays $320 per month in child support. Will he have to continue paying this amount (clearly, it we won’t be able to afford this for awhile!). Also, can anything come out of his 401K from his ex to pay for this? We do not have any savings except for this, and are depending on this to simply pay the bills we have now.

Any immeditate response would be greatly!