New York residents may have heard about Peter Orszag’s contentious child support case because he is the former director of the Office of Management and Budget who left his government post for a job with Citigroup in New York. A court ruled in July that Orszag should not pay his ex-wife, Cameron Kennedy, child support. Kennedy was seeking $22,000 a month for the couple’s two children, a 14-year-old girl and 12-year-old boy. The court stated in a ruling that it would not be in the children’s best interest to establish anything that would cause the parents to interact.
Orszag and his ex-wife divorced in 2006. They agreed that Orszag would set up a $400,000 trust to cover their children’s education costs and major expenses. However, the parents modified their divorce agreement to also divide the expenses for vacations and child care in 2008. Then, in 2010 Orszag left his political job for Citigroup. His income increased from around $145,000 annually to $3.6 million in 2012. That year, his ex asked to amend their agreement to get monthly child support payments.
Courts rejected her request and ordered Orszag to pay for the children’s school tuition. He is also to pay for their summer camp fees and for extracurricular activities. Orszag was also told to pay for any unreimbursed medical bills.
It is often up to a family law court to decide what is in the children’s best interest when their parents divorce. New York courts use guidelines to determine child support in the absence of an agreement between the parents, but this system is not always appropriate for unique situations.
Source: The Washington Post, “Child-support drama ends in legal win for Peter Orszag“, Helena Andrews, July 10, 2014