Loan Modification Forum - LoanSafe.org - View Single Post - Cut to the CHASE

Hodgini66 · 06-30-2009, 02:57 PM

Thanks Snapple & 3 Kidlets,

Yes, I do pay spousal support (aka "alimony") of $2,000, as she was the stay @ home Mom and received 65% custodial time. Sadly, her choice to divorce. Said something like "I DESERVE to be happy!".

As for child support, the "guidance" support calculator came in around the same figure of what I finally agreed to in the court house hallway, of $4,000.

The reason for this goes beyond calculating based solely upon simple income. MOST substantial tax deductions INCREASE the net child support. See the "Monthly Deduction Information" on the Cal's website: https://www.cse.ca.gov/ChildSupport/...lineCalculator

Firstly, spousal suport is tax deductible so it INCREASES the child support figure.

Secondly, I was to exclusively pay for and reap the "rewards" (WHAT REWARDS??? PFFT!) from exclusively occupying the house while paying the property taxes and mortgage interest (out of the trust acct while it sold). But, since my ex "held out for beyond market prices while listed, it never sold. Nevertheles, because these are tax deductible, they are taken into account by the support calculator, which increases the net money I pay for child support. The house is in a Mello Roose district so higher property taxes ($13k/yr) and the 1st and second interest payments WERE ~$6,500 per month.

Sadly, if I lose the house and become a renter... I also lose these valuable tax deductions, meaning I pay more in personal income taxes. I would lose a ~$20k per year tax refund (State & Fed combined). Worse yet, it makes very little difference to the support calculations, reducing the current calculated net child support figure from $3,600 down to $3,000.

RECAP: I lose the house = I lose $20k cash per year (refunds) and child support is reduced by (only) $7,200 per year. Net result: My credit is ruined, I lose $12,800 per year net spendable cash and I get to squeeze into a tiny apartment with crack dealers. Heeey... THAT's GReeeeeaaat!

As for the trust account: It was depleted by paying the mortgage, prop taxes and insurance out of it, on top of $20k in atty's fees (both sides).

Yes, the divorce atty's screwed us over, still not finished screwing us over.

Ain't life a beach!?!

Thanks for listening (reading), I'll keep you posted!

06-30-2009, 02:57 PM	#11 (permalink)
Hodgini66 Senior Member Join Date: May 2009 Location: Orange County, CA Posts: 67 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Cut to the CHASE - Jumbo & 2nd Mod Thanks Snapple & 3 Kidlets, Yes, I do pay spousal support (aka "alimony") of $2,000, as she was the stay @ home Mom and received 65% custodial time. Sadly, her choice to divorce. Said something like "I DESERVE to be happy!". As for child support, the "guidance" support calculator came in around the same figure of what I finally agreed to in the court house hallway, of $4,000. The reason for this goes beyond calculating based solely upon simple income. MOST substantial tax deductions INCREASE the net child support. See the "Monthly Deduction Information" on the Cal's website: https://www.cse.ca.gov/ChildSupport/...lineCalculator Firstly, spousal suport is tax deductible so it INCREASES the child support figure. Secondly, I was to exclusively pay for and reap the "rewards" (WHAT REWARDS??? PFFT!) from exclusively occupying the house while paying the property taxes and mortgage interest (out of the trust acct while it sold). But, since my ex "held out for beyond market prices while listed, it never sold. Nevertheles, because these are tax deductible, they are taken into account by the support calculator, which increases the net money I pay for child support. The house is in a Mello Roose district so higher property taxes ($13k/yr) and the 1st and second interest payments WERE ~$6,500 per month. Sadly, if I lose the house and become a renter... I also lose these valuable tax deductions, meaning I pay more in personal income taxes. I would lose a ~$20k per year tax refund (State & Fed combined). Worse yet, it makes very little difference to the support calculations, reducing the current calculated net child support figure from $3,600 down to $3,000. RECAP: I lose the house = I lose $20k cash per year (refunds) and child support is reduced by (only) $7,200 per year. Net result: My credit is ruined, I lose $12,800 per year net spendable cash and I get to squeeze into a tiny apartment with crack dealers. Heeey... THAT's GReeeeeaaat! As for the trust account: It was depleted by paying the mortgage, prop taxes and insurance out of it, on top of $20k in atty's fees (both sides). Yes, the divorce atty's screwed us over, still not finished screwing us over. Ain't life a beach!?! Thanks for listening (reading), I'll keep you posted!