How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Jo C. Your Own Question

Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 30929
Experience:  Over 5 years in practice
12826847
Type Your Law Question Here...
Jo C. is online now

I am a divorced man, aged 50, working in a global company in

Customer Question

I am a divorced man, aged 50, working in a global company in a management role drawing a salary of £102,000 per year in 2008, I suffered a stroke which impaired my cognitive abilities and it was determined I could not perform my role as Financial Controller. The company had an Income Protection Insurance under which it was agreed by the insurers to pay me a sum of £64,000 per year till age 65. The insurance company paid me this sum every month all these years. They have now come with a proposal to pay me a lumpsum of £250,000 after taxes and NI and settle the ongoing claim. I have a choice: I can either accept this lumpsum and forgo the annual £64k paid monthly or reject it and carry on receiving £64k p.a.
I have decided to accept the lumpsum payment instead of future monthly incomes payable till retirement age of 65.
I have been paying child support maintenance at 15% of my net pay worked out on my annual salary of £102,000 prior to 2008 and on £64,000 since 2008.
I believe that as the lumpsum payment of 250000 is the current value of all future income that would have been received by me till 2027, I would not be liable to pay child support at 15% of this lumpsum amount of £250,000 to my ex wife. My argument is that it constitutes future income discounted to current value. I am however happy to continue paying child support on my annual income of £64,000 that will now cease.
My plan is to invest the £250,000 in starting a retail business that will generate me income.
My son is is 16 years old and I am liable to pay child support for another 3 to 4 years maximum.
Can my wife have a legal claim on 15% of £250,000 arguing that it is income earned? My view is that it is not annual income but all future income paid to me as lumpsum, so she does not have a claim on it. I am happy however, to be fair, to continue paying child support on income of £64,000 for the next few years till child finishes education. Of course, I will not be receiving any annual income any more once I get this lumpsum.
Does this lumpsum payment of £250,000 in lieu of all future annual incomes for the next 11 years constitute "income" on which my wife can enforce a legal claim for child support? Will I be forced to pay £37,000 being 15% of lumpsum received to her under Child Support Law?
Submitted: 4 months ago.
Category: Law
Expert:  Clare replied 4 months ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

When was the CSA assessment first made?

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice