Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 21
  1. #1
    Join Date
    Aug 2015
    Posts
    10

    Default Do Proceeds from a Sale of Home Count As Income for Child Support

    My question involves child support in the State of: Oregon
    My husbands ex is modifying the support and he just sold his home and we purchased a home together. WE have an upcoming hearing and his ex is claiming that he is required to report the income for calculation of support. They wording says return on Capital which would be a totally different thing that This. They are also trying to state that he is required to report any 401K the employer has matched on his amount he put in and also the amount the Employer pays for his medical Benefits. WE interpret it as the 401k is not considered Liquid as he cannot just cash it in without penalties and the health insurance states its if the employer contributes over the cost of the health care that needs to be counted. Could you give me some feed back on this to take to the hearing to finally shut them up once and for all and say he is lying about his income.

  2. #2
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    The definition of income that counts is at OAR 137 050 0715....print it out, lay it out with care , and follow the definitions to aT .

  3. #3
    Join Date
    Aug 2015
    Posts
    10

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    I Have and it doesn't state Capital Gains. But it does state Capital Returns which I looked up the definition So that is why I am making sure that it doesn't mean from the sale of a home. They have been twisting this around and misinterpreting this OAR for a long time and I am trying to get the information to show them just in case. The Ex Wives husband will not ever admit he is mis interpreting the rule. So we need to make sure going into the hearing that he is incorrect.

  4. #4
    Join Date
    Jul 2012
    Location
    So Cal
    Posts
    854

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    Capital gains from the one time sale of a personal residential property are not considered income. Employer contributions to a 401k are not income, and employer contributions to a healthcare plan aren't income. The NCP needs to hire a lawyer, or at least speak to a lawyer. If the CP has an attorney, the NCP best find a way to retain counsel.

  5. #5
    Join Date
    Aug 2015
    Posts
    10

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    Ok thanks at this point there is no attorney the CP has hired. We have an Administrative hearing scheduled and this was there basis of filing a hearing based on the modification. The State set the new modified amount which went down based on one child dropping off and they are upset. The 401K and the Insurance are the income they say he has lied about. Claiming it is income. The sale of the home came after however it was brought up by the CP for the hearing as evidence. We just wanted to make sure going into the hearing we had the correct information for our Rebuttal. We also will be consulting with an attorney just wanted to check first here.

  6. #6
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    The definition of gross income and counted gross income for,tax purposes may not be the same....dig deeper

    it my lay understanding that employer match contribution to a 401 is not income, not yet, not,constructively recieved and so forth.

    The state view as to employee contributions varies..most like OR follow the Federal logic that you did not yet get it, it's not in the pot to,count for TAX purposes.

  7. #7
    Join Date
    Aug 2015
    Posts
    10

    Default Re: Does the Proceeds from a Sale of Home Count As Income for Child Support

    Yeah that is what we thought. It talks about employer contributions for stock or profit sharing and it's counted if such contributions are capable of ready cash. So I think they misinterpreted that. Thanks for your help. Sad she sent a letter to his children saying he's a liar and a fraud. Maybe this will clear it up.

  8. #8
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Do Proceeds from a Sale of Home Count As Income for Child Support

    Quote Quoting foureeyes46
    View Post
    My question involves child support in the State of: Oregon
    My husbands ex is modifying the support and he just sold his home and we purchased a home together. WE have an upcoming hearing and his ex is claiming that he is required to report the income for calculation of support. They wording says return on Capital which would be a totally different thing that This. They are also trying to state that he is required to report any 401K the employer has matched on his amount he put in and also the amount the Employer pays for his medical Benefits. WE interpret it as the 401k is not considered Liquid as he cannot just cash it in without penalties and the health insurance states its if the employer contributes over the cost of the health care that needs to be counted. Could you give me some feed back on this to take to the hearing to finally shut them up once and for all and say he is lying about his income.
    I am going to give very slightly difference advice. I am going to address each item separately.

    The sale of his home: The only "income" that someone can have from a sale of a home is capital gains income. In other words, the possible "profit" that he made on the home. The profit is (sales proceeds minus selling costs) minus (original purchase price plus major improvements) equals capital gain. It is also possible to have a loss rather than a gain. Because it was his primary residence that profit is excluded from income for tax purposes, but there may be some extremely slight chance that a judge would consider that profit as income for child support purposes. I have never, ever seen it happen, but I am unwilling to entirely rule it out.

    401k: Certainly the money that he contributes could get added back to his income, but I have never seen a judge include employer contributions as income for child support purposes because generally a person has no access to those contributions until retirement.

    Health Insurance: That one is truly absurd. Workers compensation benefits that replace income could certainly be counted as income, or some other such benefit but for them to attempt to include employer paid premiums in income is truly absurd.

  9. #9
    Join Date
    Aug 2015
    Posts
    10

    Default Re: Do Proceeds from a Sale of Home Count As Income for Child Support

    In reality the money we got from the proceeds after the mortgage and all cost were taken out went back into our current home. We used it for a big portion of our mortgage. So it really went to buy a home. There was no money left. Plus we put thousands of dollars in to fixing it up. So we should be good at the hearing. I doubt the judge will look at this. We just need to end in anything we want used in hearing and the clarification of the rules we will be sending.

  10. #10
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Do Proceeds from a Sale of Home Count As Income for Child Support

    it's not what you did with the money that counts...but what the law or rules says is to be counted

    Logically money that he got and then put back into his 401(k) is money that he got ....but that is NOT what the IRC says, it says he did not really get it yet. Now some states confirm to Federal tax code and some do not ...mine did NOT until just recently.. Now some judge as to child support matters may view it as the big gross, not the amount the tax collector counts as starting point ....it can get
    hairy... My view about if it's in pot doesn't count..but I know where I'd start ..and have copies of the relevant federal and state tax code printed out with me

    1. Sponsored Links
       

Page 1 of 3 1 2 3 LastLast

Similar Threads

  1. Calculation of Support: Does Home Ownership Count As Income for Child Support
    By spokanedriver in forum Child Custody, Support and Visitation
    Replies: 6
    Last Post: 08-11-2015, 11:34 AM
  2. Modification of Support: Does My Spouse's Income Count for Child Support
    By whatintheworld in forum Child Custody, Support and Visitation
    Replies: 4
    Last Post: 02-09-2014, 06:38 PM
  3. Modification of Support: Does a New Spouse's Income Count Toward Child Support
    By alternation in forum Child Custody, Support and Visitation
    Replies: 1
    Last Post: 11-27-2013, 12:14 PM
  4. Calculation of Support: Does Child Support From Another Non-Custodial Parent Count as Income
    By gatorbear in forum Child Custody, Support and Visitation
    Replies: 2
    Last Post: 05-01-2013, 10:16 PM
  5. Military Disability Payment Count As Income in Regards to Child Support
    By shippi22 in forum Child Custody, Support and Visitation
    Replies: 1
    Last Post: 05-09-2011, 03:58 PM
 
 
Sponsored Links

Legal Help, Information and Resources