Legal Question in Family Law in Indiana

Re: Out-Of-Pocket Medical Expenses

The fun of managing the 6% Rule! Generally you need to decide whether you are using calendar years or fiscal years (date of decree to one year later). You include all amounts you pay as well as those incurred that you have not yet paid during the period you choose. Once you have reached the 6% amount, then he begins to pay toward his percentage of all expenses after that. Generally, courts prefer that you provide him a copy of each receipt from the provider or the pharmacy showing your expenditure and/or the outstanding bill along with any explanation of benefits (EOB) from insurance to prove when the 6% amount was met. As to all amounts then due, if you pay the amount in full, he owes you a reimbursement, if the amount is billed, then you can decide whether he should give you the money or pay his portion directly to the provider. I assume that on prescriptions you pay immediately, he will be reimbursing you. You still need to provide the receipts or statements and EOB's for the balance of the year. If you pay during this year an amount due for last year, you should not include it in this year's computation, as it was included in some way in last year's figures. The best way I have found is for you to start a spread sheet at the beginning of each year, listing the date of the appointment or prescription refill, the total cost, the cost you paid, the amount insurance pays and the balance you owe, and keep a running total until you reach 6%, then start dividing the rest of the expenses according to your percentages, so that at any time you can access the spread sheet and determine how close you are to the 6% amount, or what you have paid that he needs to reimburse you for.

In cases where EOB's go to the non-custodial parent, he must absolutely give the custodial parent a copy of those within a reasonable time after receipt.

Re: Out-Of-Pocket Medical Expenses

To supplement this answer, when you have an item so expensive that you are required to enter into a contract for the expense (yes, braces), you need to talk to former spouse to see if you can agree as to whether the entire expense should be treated as part of medicals or should be treated separately. That is, will the entire amount, no matter what year it is paid in, be treated as an expense for the current year or should only the actual payments due each month be treated as incurred for the current year. If you cannot agree, I am sure the court will be happy to tell you how it is going to work.