Will Child Support Be Increased if the Payor Receives a Large Lump Sum

My question involves child support in the State of: New York


I am receiving a lump sum of money......close to 7 figures. i have 1 son and was never married to his mother. will child support calculate this as 'earned income'? if i do have to pay according to this additional income, is there a way i can make sure the majority of this lump sum goes directly to an account for my son ONLY?

The lump sum represents what? A gift? An inheritance? Cashing in stock options? Lottery winnings?

If you owe child support to your ex-, your ex- gets to decide how to spend it.

lottery winnings

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Quoting li.bee94

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lottery winnings

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According to NY attorney Christopher Simser:

"Lottery winnings are income in New York State and are considered when child support is calculated."

Your ex could conceivably go back to court and petition for an increase based on a change in circumstances and it's likely that the judge would grant it.

wow. so she would be eligible to get 17% of whatever the amount is?

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Quoting li.bee94

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wow. so she would be eligible to get 17% of whatever the amount is?

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Theoretically yes. That doesn't mean that it would absolutely happen, but theoretically yes.

yes. she is very greedy and not accommodating. i pay child support on time. she wants more. he's only 5.....he really needs nothing beyond clothes at this point. i buy all of his clothes, which i am not court ordered to, and pay my child support and see him several times a week.....when she is cooperating. we were never married so i owe her no luxuries for her lifestyle.

i wish child support laws had a clause where a % of the money sent must go into a trust for the child that cannot be touched. the way it is now, a mother can do whatever she wants with all of the money every month. my friend has 2 children with his ex-fiance......a few months after their breakup and $1700 a month for 2 toddlers, she has a brand new lexus. the system is too one-sided!

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incredible. thanx. im glad i didnt sign the ticket yet. i am already doing homework on setting up a trust fund for my son for himself and for college. i am just trying to do as much homework as i can before i consult an attorney and financial advisor so i am not taken advantage of. thank you for all of your help.

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yes, i am obligated to report changes in income. very eye-opening. thank you for your help.

Caution...naming the child as benificiary to a trust fund is likely a sure killer to any prospect of need based grant aid for college under the current FAFSA methodology with otherwise looks essentially at the CPs economic picture ....there may be other ways to end run that Catch 22

really? ok. i was advised against 529 plans. maybe i'll just get him sum mutual funds. still researching

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Quoting li.bee94

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yes. she is very greedy and not accommodating. i pay child support on time. she wants more. he's only 5.....he really needs nothing beyond clothes at this point. i buy all of his clothes, which i am not court ordered to, and pay my child support and see him several times a week.....when she is cooperating. we were never married so i owe her no luxuries for her lifestyle.

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I see, so your child doesn't need food to eat, doesn't need a roof over his head, doesn't need access to utilities, doesn't need transportation, doesn't need sundries etc. etc. etc?

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i wish child support laws had a clause where a % of the money sent must go into a trust for the child that cannot be touched. the way it is now, a mother can do whatever she wants with all of the money every month. my friend has 2 children with his ex-fiance......a few months after their breakup and $1700 a month for 2 toddlers, she has a brand new lexus. the system is too one-sided!

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Raising children is far more expensive than you think.

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incredible. thanx. im glad i didnt sign the ticket yet. i am already doing homework on setting up a trust fund for my son for himself and for college. i am just trying to do as much homework as i can before i consult an attorney and financial advisor so i am not taken advantage of. thank you for all of your help.

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There are unscrupulous financial advisors out there, be careful who you consult.

Assets in childs name are killers. 529s are a bit different..special rules ...

NY does not permit anominity as to winners and you have a strict timeline to claim prize..be careful.

I'm not saying he needs nothing. clothing is his main thing tho. but i did say i pay child support as well which is all i am ordered to pay. but, i buy all of his clothes, the majority of his toys, pay the co-pay for doctor & meds. i was even going full scale grocery shopping for her entire house(she has 2 daughters who are not mine) every week & leaving them at daycare for her for close to a year. she didnt appreciate it and wanted more money & told me she didnt need my handouts so i stopped. i've even given her extra money. all of this in addition to me participating in his daily routine several days a week, every week which at the moment only consists of him getting to and from daycare. these are things i choose to do but i am not ordered to do and i could leave it all on her instead of waking up hours earlier than i have to, driving 20 miles to her to take him and then driving out of my way at the end of the day to pick him up. i do it because i luv my son tho. i could be selfish and just wait for her to bring him home everyday, then go see him.(when she allows me) but i am basically the only one who takes him places and spends time with him the way a boy likes.....like i said, he has 2 sisters. both are teenagers. not into playing and running around.

in return, she registers my son at the daycare and writes down "has no father".....she moved and told me she wouldnt tell me where she lived(no police reports or stay away orders in place)....had to go to court to find out, refuses to consent to my son's passport after the judge ordered her to so i can take him on a disney cruise, cursed my mother out who was always her biggest ally etc. etc. etc..... all because i am happy!!!???

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ok thanx. i guess i'll have to do a little more research into 529's then. much appreciated

Dude, you're dealing with the same ex millions are having to deal with (on either end of the stick, let's be honest).

If she is preventing you from exercising your court ordered parenting time, you have recourse.
If she is otherwise not following the law, you have recourse.

Withholding income is NOT your recourse.

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Okay - explain to me please why you think the answers might have changed since the last time you asked this?

are you serious? i guess you never been to family court in ny. they dont care. the judge ordered her to sign the consent for his passport over a year ago. i've taken her to court for that violation twice. nothing. just tell her to do it. no consequences.

im not withholding any income. what i acquire in addition is a bonus to my life and my son's life. thats what it will be used for. im not rewarding disrespect and ignorance.

i dont care what other fathers go thru. i care about my family.

If you are dealing with a royal pain of an EX I strongly suggest added homework and staying off any Socail networks which might tip he off to your new "income "

If you get countable income under NY rules and then park a good chunk in a 529, that does NOT unwrap the fact that you got said income...and if by some set of rules she is entitled to latch on to 17% or whatever.. OUCH.

I simply do not know the rules for NY..but a lottery ticket is a bit like a bearer bond . If your son owned say 50 % by lawful means ..his income might be out of your support math ..and might be structured so you have all logical control of same and its beyond moms reach ...just a point to consider with counsel....

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minors cannot purchase lottery tickets...whether they can own or co own a ticket as a gift is a point neyond me ...check before you go there...

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Quoting li.bee94

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are you serious? i guess you never been to family court in ny. they dont care. the judge ordered her to sign the consent for his passport over a year ago. i've taken her to court for that violation twice. nothing. just tell her to do it. no consequences.

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And? YOU NEED TO KEEP PURSUING THIS. Don't expect the court to hold your hand and do it for you.

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im not withholding any income. what i acquire in addition is a bonus to my life and my son's life. thats what it will be used for. im not rewarding disrespect and ignorance.

i dont care what other fathers go thru. i care about my family.

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Well, you go ahead with your good self and tell that to the Judge. Good luck with that.

Don't come back whining when you're on the wrong end of the gavel.

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Quoting HRinDEVON

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If you are dealing with a royal pain of an EX I strongly suggest added homework and staying off any Socail networks which might tip he off to your new "income "

If you get countable income under NY rules and then park a good chunk in a 529, that does NOT unwrap the fact that you got said income...and if by some set of rules she is entitled to latch on to 17% or whatever.. OUCH.

I simply do not know the rules for NY..but a lottery ticket is a bit like a bearer bond . If your son owned say 50 % by lawful means ..his income might be out of your support math ..and might be structured so you have all logical control of same and its beyond moms reach ...just a point to consider with counsel....

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minors cannot purchase lottery tickets...whether they can own or co own a ticket as a gift is a point neyond me ...check before you go there...

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In other words, "I don't know, but .... ".

This is a pattern of yours. Why is that?

I can tell you part of the answer. He got yelled at so incessantly for just answering any old answer that now he prefaces his answers with "I don't know but..." For some reason he thinks this makes it appropriate to post when he has no idea what he's talking about.

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Quoting HRinDEVON

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If you are dealing with a royal pain of an EX I strongly suggest added homework and staying off any Socail networks which might tip he off to your new "income "

If you get countable income under NY rules and then park a good chunk in a 529, that does NOT unwrap the fact that you got said income...and if by some set of rules she is entitled to latch on to 17% or whatever.. OUCH.

I simply do not know the rules for NY..but a lottery ticket is a bit like a bearer bond . If your son owned say 50 % by lawful means ..his income might be out of your support math ..and might be structured so you have all logical control of same and its beyond moms reach ...just a point to consider with counsel....

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minors cannot purchase lottery tickets...whether they can own or co own a ticket as a gift is a point neyond me ...check before you go there...

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all your help is much appreciated. but i was never going to try to co-own it with him. i just want to use the money for his well-being and future. unfortunate part of child support is once it leaves your hands, you have to trust that the right thing is being done with the money and it is used for the child. unfortunately in my situation, she has an ex who has not kept up with his support for her daughters and that's probably where her greed is coming from. i have always done above and beyond to help with that slack but my responsibility is to my son and i have to make sure i can do all i can FOR HIM first and foremost.

Doggie, I think the swimming pool analogy is due here. You want to take it or shall I?

I'll do it, since I'm on break.

Right. This, ladies and gentlemen, is how it works. (Switch pronouns as necessary)

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Treat your checking account like a swimming pool. Every month, you add 500 gallons of water from child support. You add another 1000 gallons from your job. Maybe you have a birthday and get another 50 gallons for gifts.

Now, you take 300 gallons out to pay your rent. You take 200 gallons out for food. Another 200 gallons for medical care.

How in the world would you be expected to know that the gallons you took out for food, clothing, etc was the same as the money that went in for child care? Obviously, you can't.

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Any questions?

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Quoting li.bee94

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yes. she is very greedy and not accommodating. i pay child support on time. she wants more. he's only 5.....he really needs nothing beyond clothes at this point. i buy all of his clothes, which i am not court ordered to, and pay my child support and see him several times a week.....when she is cooperating. we were never married so i owe her no luxuries for her lifestyle.

i wish child support laws had a clause where a % of the money sent must go into a trust for the child that cannot be touched. the way it is now, a mother can do whatever she wants with all of the money every month. my friend has 2 children with his ex-fiance......a few months after their breakup and $1700 a month for 2 toddlers, she has a brand new lexus. the system is too one-sided!

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incredible. thanx. im glad i didnt sign the ticket yet. i am already doing homework on setting up a trust fund for my son for himself and for college. i am just trying to do as much homework as i can before i consult an attorney and financial advisor so i am not taken advantage of. thank you for all of your help.

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yes, i am obligated to report changes in income. very eye-opening. thank you for your help.

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Yeah...those darned mothers making Lexus payments on child support...kinda like the "welfare queen" meme. It's a myth.

Ever consider that the Lexus is being paid for with earned wages? Tupperware parties? Her folks kicking in a few bucks?

If you had custody and received child support (and men indeed do), you can spend it as you pleased, too.

You made the kids, you pay for the kids. You win lottery money, guess what- that child can get a cut, too.

Oh he's fine with the child getting a cut - he's just pissing and moaning about Mom getting to administer that cut first.

Hell, as long as that child is fed, clothed and housed, Mom can treat herself to the entire year's worth of new Vuitton purses.

THAT'S what's irritating the living hell out of him. He can't control - that's it.

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Quoting Dogmatique

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Oh he's fine with the child getting a cut - he's just pissing and moaning about Mom getting to administer that cut first.

Hell, as long as that child is fed, clothed and housed, Mom can treat herself to the entire year's worth of new Vuitton purses.

THAT'S what's irritating the living hell out of him. He can't control - that's it.

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But that's the way it goes- if the shoe was on the other foot, it would be the same for him. He could buy a nice pair of Italian loafers if he wished. It just is what it is!

Can you imagine if the courts started asking for reciepts-- hoo boy! ;)

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Quoting geek

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But that's the way it goes- if the shoe was on the other foot, it would be the same for him. He could buy a nice pair of Italian loafers if he wished. It just is what it is!

Can you imagine if the courts started asking for reciepts-- hoo boy! ;)

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Shellac manicures: $40 + tip
Yoga supplies: $85
New sneakers: $285
Knowing it's bugging the life out of your ex: priceless.



I'm going to get serious now. If I was in Dad's position, yes, I'd be pissed as all glory. BUT. There comes a point where you have to just quit focusing on it. Otherwise it's going to eat you alive, and the resentment will hurt the relationship between you and your child because no matter how hard you try and how well you think you're hiding it, you're really not.

If you can change something, then change it and stop worrying.
If you can't change it, stop worrying about it.

Y'know?

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Quoting Dogmatique

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Shellac manicures: $40 + tip
Yoga supplies: $85
New sneakers: $285
Knowing it's bugging the life out of your ex: priceless.



I'm going to get serious now. If I was in Dad's position, yes, I'd be pissed as all glory. BUT. There comes a point where you have to just quit focusing on it. Otherwise it's going to eat you alive, and the resentment will hurt the relationship between you and your child because no matter how hard you try and how well you think you're hiding it, you're really not.

If you can change something, then change it and stop worrying.
If you can't change it, stop worrying about it.

Y'know?

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I would agree with that wholeheartedly.

You'll never win, and the stress of fretting about it just isn't worth it.

(285 dollar sneakers?? Is that a thing?)

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Quoting geek

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I would agree with that wholeheartedly.

You'll never win, and the stress of fretting about it just isn't worth it.

(285 dollar sneakers?? Is that a thing?)

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(Major thing)

(My biggest Major Thing? Henna)

Windfall income is not treated as annual income when it comes to calculating child support. So there isn't going to be any big pay out to the custodial parent. And there is nothing automatic about increased support based on the winnings.

Custodial parent has to file for reconsideration and fill out a case management statement with all the actual expenses of living and child expenses. Non-custodial parent has to do the same.

The court is not going to raise child support payments based on one year's income including the winnings only to have to handle another motion for reconsideration in following years. The winnings will be averaged or amortized over a period of time the court thinks is appropriate.

Talk to your lawyer and your accountant.

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Quoting budwad

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Windfall income is not treated as annual income when it comes to calculating child support. So there isn't going to be any big pay out to the custodial parent. And there is nothing automatic about increased support based on the winnings.

Custodial parent has to file for reconsideration and fill out a case management statement with all the actual expenses of living and child expenses. Non-custodial parent has to do the same.

The court is not going to raise child support payments based on one year's income including the winnings only to have to handle another motion for reconsideration in following years. The winnings will be averaged or amortized over a period of time the court thinks is appropriate.

Talk to your lawyer and your accountant.

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Lottery winnings are income for child support purposes in New York. This is in addition to the state having first pick if arrears are owed.

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Quoting geek

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Yeah...those darned mothers making Lexus payments on child support...kinda like the "welfare queen" meme. It's a myth.

Ever consider that the Lexus is being paid for with earned wages? Tupperware parties? Her folks kicking in a few bucks?

If you had custody and received child support (and men indeed do), you can spend it as you pleased, too.

You made the kids, you pay for the kids. You win lottery money, guess what- that child can get a cut, too.

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To clear the air......im not worried or angry about anything. she is who she is & she chooses her actions. i choose my actions. besides all of that, im a 'hands on' father.....i had my son everyday, all day until he was 2 years old. she broke off the engagement when he was 14 months old. i still had him all week and she had him on weekends. she didnt want to do visitation until he was 2yrs old. since then, i see my son 3-4 days a week. my visitation is for 2 weekends a month.....when it's my weekend, i'll see him at least 6 days that week.

when i do as much as you do, you dont NEED more money, u WANT more money which is GREED. i take him to daycare several days a week. i also pick him up a few days a week. some of those days, he spends the night with me and i'll take him back to daycare the next morning. why does she allow this? because it's easy for her. thats all.

this is a situation of GREED. period. now if she did it ALL EVERYDAY, then it is what it is with the child support and the money she gets. my responsibility is to my son and what im going to do is make sure he's taken care of. that simple. her being difficult and disrespectful to my family just gives me more incentive to make sure my son is taken care of FIRST,FOREMOST AND ONLY! like i said, she chose her actions. she has to live with the results.

As of today, this situation has been taken care of and i have what i want. To everyone, who was sincere with their advice, i appreciate all of your input. thank you.

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Quoting li.bee94

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To clear the air......im not worried or angry about anything. she is who she is & she chooses her actions. i choose my actions. besides all of that, im a 'hands on' father.....i had my son everyday, all day until he was 2 years old. she broke off the engagement when he was 14 months old. i still had him all week and she had him on weekends. she didnt want to do visitation until he was 2yrs old. since then, i see my son 3-4 days a week. my visitation is for 2 weekends a month.....when it's my weekend, i'll see him at least 6 days that week.

when i do as much as you do, you dont NEED more money, u WANT more money which is GREED. i take him to daycare several days a week. i also pick him up a few days a week. some of those days, he spends the night with me and i'll take him back to daycare the next morning. why does she allow this? because it's easy for her. thats all.

this is a situation of GREED. period. now if she did it ALL EVERYDAY, then it is what it is with the child support and the money she gets. my responsibility is to my son and what im going to do is make sure he's taken care of. that simple. her being difficult and disrespectful to my family just gives me more incentive to make sure my son is taken care of FIRST,FOREMOST AND ONLY! like i said, she chose her actions. she has to live with the results.

As of today, this situation has been taken care of and i have what i want. To everyone, who was sincere with their advice, i appreciate all of your input. thank you.

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You seriously need to consider counseling. Your hatred of your ex is so, so severe that your son is going to pick up on it no matter how hard you think you're hiding it.

Ironically, you make such a fuss about "want" versus "need", and yet... what does your last paragraph say?

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Quoting Dogmatique

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You seriously need to consider counseling. Your hatred of your ex is so, so severe that your son is going to pick up on it no matter how hard you think you're hiding it.

Ironically, you make such a fuss about "want" versus "need", and yet... what does your last paragraph say?

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and you are a clown who thinks he knows much more than he does. 'fuss'......'hatred'......seriously???!!! i explained myself and that was it. and yes i said 'want' because it's my money. who doesnt WANT to handle their money their own way?????

the money was taken care of the way i wanted it to yet, i just sent her money today in addition to my child support. but, i'll allow u to continue to think u r rite. u should re-consider giving advice. instead of 'assuming' u know, hopefully u ask the next person a few additional questions before you make a judgment call.

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Quoting li.bee94

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and you are a clown who thinks he knows much more than he does. 'fuss'......'hatred'......seriously???!!! i explained myself and that was it. and yes i said 'want' because it's my money. who doesnt WANT to handle their money their own way?????

the money was taken care of the way i wanted it to yet, i just sent her money today in addition to my child support. but, i'll allow u to continue to think u r rite. u should re-consider giving advice. instead of 'assuming' u know, hopefully u ask the next person a few additional questions before you make a judgment call.

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Q4P.

:cool:

(You're missing a few things, but just as an example... it's not your money ;) )

If you send her extra money--that does not get you brownie points that count in a court of law --and if as you predict, she blows it--your son gets no benefit.

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Quoting Dogmatique

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Lottery winnings are income for child support purposes in New York. This is in addition to the state having first pick if arrears are owed.

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Domestic Relations Law § 240(1-b)(e) provides that the court may allocate a proportion of nonrecurring payments from extraordinary sources, including lottery winnings, to child support.

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The court has discretion to exclude nonrecurring payments from a party's gross income for child support purposes. (See Matter of Muselevichus v Muselevichus, 40 AD3d 997 [2d Dept 2007].)

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It is undisputed that defendant received the lottery winning proceeds in a lump-sum payment. As the payment is a nonrecurring payment, the court declines to consider defendant's lottery winnings as income for the purpose of calculating the parties' gross incomes and combined parental income. Questel v. Questel, 39 Misc. 3d 667 - NY: Supreme Court 2013

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The State Lottery Commission can withhold winnings to pay support arrears but the question was is the custodial parent entitled to an increase in support payments or a lump sum portion of the winnings. The answer is no assuming a lump-sum payment of the winnings.

From the trial court opinion you mentioned,

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Quoting Questel v. Questel, 39 Misc. 3d 667 (Supreme Court 2013), emphasis added.

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Domestic Relations Law § 240(1-b)(b)(5) defines "income" for the purposes of calculation of child support. Specifically, Domestic Relations Law § 240(1-b)(b)(5)(i) defines gross income as income that should have been reported or should be reported as income in the most recent federal tax return. Domestic Relations Law § 240(1-b)(e) provides that the court may allocate a proportion of nonrecurring payments from extraordinary sources, including lottery winnings, to child support. The court has discretion to exclude nonrecurring payments from a party's gross income for child support purposes. (See Matter of Muselevichus v Muselevichus, 40 AD3d 997 [2d Dept 2007].)

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Quoting Domestic Relations Law, Sec. 240(1)(e)

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(e) Where a parent is or may be entitled to receive non-recurring payments from extraordinary sources not otherwise considered as income pursuant to this section, including but not limited to:

(1) Life insurance policies;

(2) Discharges of indebtedness;

(3) Recovery of bad debts and delinquency amounts;

(4) Gifts and inheritances; and

(5) Lottery winnings,

the court, in accordance with paragraphs (c), (d) and (f) of this subdivision may allocate a proportion of the same to child support, and such amount shall be paid in a manner determined by the court.

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So it is within the discretion of the court to consider lump sum lottery winnings when assessing child support.

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Quoting li.bee94

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and you are a clown who thinks he knows much more than he does. 'fuss'......'hatred'......seriously???!!! i explained myself and that was it. and yes i said 'want' because it's my money. who doesnt WANT to handle their money their own way?????

the money was taken care of the way i wanted it to yet, i just sent her money today in addition to my child support. but, i'll allow u to continue to think u r rite. u should re-consider giving advice. instead of 'assuming' u know, hopefully u ask the next person a few additional questions before you make a judgment call.

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Translation - you're not telling me what I want to hear.

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So it is within the discretion of the court to consider lump sum lottery winnings when assessing child support.

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I agree and I don't think I posted anything to the contrary. The court may consider the lottery winnings. But in the most recent case I cited they declined to do so.

The point is that it is not a given that lottery winnings paid in a lump-sum payment will be considered income for the purpose of calculating child support. And from my earlier post, the parties still have to file for reconsideration and the court will decide.

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Quoting budwad

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I agree and I don't think I posted anything to the contrary. The court may consider the lottery winnings. But in the most recent case I cited they declined to do so.

The point is that it is not a given that lottery winnings paid in a lump-sum payment will be considered income for the purpose of calculating child support. And from my earlier post, the parties still have to file for reconsideration and the court will decide.

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thanks for your input. i appreciate it

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Quoting HRinDEVON

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If you send her extra money--that does not get you brownie points that count in a court of law --and if as you predict, she blows it--your son gets no benefit.

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as i said earlier, everything was taken care the way i needed it to be. the issue of this money will never be a court case. thanx for all of your input and advice. i appreciate it.

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Quoting budwad

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Domestic Relations Law § 240(1-b)(e) provides that the court may allocate a proportion of nonrecurring payments from extraordinary sources, including lottery winnings, to child support.





The State Lottery Commission can withhold winnings to pay support arrears but the question was is the custodial parent entitled to an increase in support payments or a lump sum portion of the winnings. The answer is no assuming a lump-sum payment of the winnings.

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that includes the state of ny?

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Quoting cbg

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Translation - you're not telling me what I want to hear.

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you just got here. sometimes its best to keep your 2cents in your pocket

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Quoting Mr. Knowitall

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From the trial court opinion you mentioned,


So it is within the discretion of the court to consider lump sum lottery winnings when assessing child support.

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interesting. thank you.

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Quoting budwad

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Domestic Relations Law § 240(1-b)(e) provides that the court may allocate a proportion of nonrecurring payments from extraordinary sources, including lottery winnings, to child support.





The State Lottery Commission can withhold winnings to pay support arrears but the question was is the custodial parent entitled to an increase in support payments or a lump sum portion of the winnings. The answer is no assuming a lump-sum payment of the winnings.

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forget my last question. i read it. thank you for the info.

And the 17% you mention may be misleading, that formula only is there thru about $23,000 of CS ....above that and the court has a lot of discretion ....and as others posted the NY courts lean away from windfall awards for CS ...but I suggest you NOt to argue the point if Mom sends in a professional, you need a professional at that stage on youR side.

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Quoting HRinDEVON

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And the 17% you mention may be misleading, that formula only is there thru about $23,000 of CS ....above that and the court has a lot of discretion ....and as others posted the NY courts lean away from windfall awards for CS ...but I suggest you NOt to argue the point if Mom sends in a professional, you need a professional at that stage on youR side.

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thank you