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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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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: 1 year ago.
Category: Law
Expert:  Clare replied 1 year 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?