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Difference between revisions of "The Spousal Support Advisory Guidelines"
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The Spousal Support Advisory Guidelines (view source)
Revision as of 21:03, 17 March 2013
, 21:03, 17 March 2013→The Main With Child Support Formula
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<blockquote>The '''amount''' of support is 40 to 46% of the payor's individual net disposable income plus the recipient's net disposable income.</blockquote> | <blockquote>The '''amount''' of support is 40 to 46% of the payor's individual net disposable income plus the recipient's net disposable income.</blockquote> | ||
The payor's net disposable income is his or her gross income, minus taxes and minus his or her child support obligation, including the tax credits he or she receives as a result of paying spousal support. | <blockquote>The '''payor's net disposable income''' is his or her gross income, minus taxes and minus his or her child support obligation, including the tax credits he or she receives as a result of paying spousal support.</blockquote> | ||
The recipient's net disposable income is his or her gross income, minus | <blockquote>The '''recipient's net disposable income''' is his or her gross income, minus taxes and minus his or her notional child support obligation, plus any government benefits he or she receives, less the taxes payable as a result of receiving spousal support.</blockquote> | ||
Say the parties have an 8 year old child, the payor has a gross income of $50,000 and the recipient has an income of $20,000. The payor's net disposable income is $26,710 ($50,000 minus taxes of $15,570, minus annual child support of $5,112, minus EI deductions of $772, minus CPP deductions of $1,831). The recipient's net disposable income is $15,045 ($20,000 minus taxes of $4,410, minus notional child support of $2,052, minus EI deductions of $396, minus CPP deductions of $816, plus child tax benefit of $1,208, plus national child benefit of $1,511). | <blockquote><blockquote>''Say the parties have an 8 year old child, the payor has a gross income of $50,000 and the recipient has an income of $20,000. The payor's net disposable income is $26,710 ($50,000 minus taxes of $15,570, minus annual child support of $5,112, minus EI deductions of $772, minus CPP deductions of $1,831). The recipient's net disposable income is $15,045 ($20,000 minus taxes of $4,410, minus notional child support of $2,052, minus EI deductions of $396, minus CPP deductions of $816, plus child tax benefit of $1,208, plus national child benefit of $1,511).''</blockquote></blockquote> | ||
The family's net disposable income is $41,755 ($26,710 plus $15,045). 40 percent of the net disposable income is $16,702; 46 percent of the income is $19,207. After deducting the recipient's net disposable income, the difference between the recipient's income and 40 percent of the family's disposable income is $1,657 per year, and $4,162 for 46 percent. | <blockquote><blockquote>''The family's net disposable income is $41,755 ($26,710 plus $15,045). 40 percent of the net disposable income is $16,702; 46 percent of the income is $19,207. After deducting the recipient's net disposable income, the difference between the recipient's income and 40 percent of the family's disposable income is $1,657 per year, and $4,162 for 46 percent.''</blockquote></blockquote> | ||
On a monthly basis, spousal support would be between $138 and $346. The total the payor would pay each month would be spousal support plus $426 in child support. | <blockquote><blockquote>''On a monthly basis, spousal support would be between $138 and $346. The total the payor would pay each month would be spousal support plus $426 in child support.''</blockquote></blockquote> | ||
The length of time for which support will be paid ranges from the longest of two formulas used to determine the low end of the range to the longest of two formulas used to determine the high end of the range. If a couple have been together for more than 20 years, or if the age of the dependant party plus the number of years of the relationship equals 65, support will be paid indefinitely. | <blockquote>The '''length of time''' for which support will be paid ranges from the longest of two formulas used to determine the low end of the range to the longest of two formulas used to determine the high end of the range. If a couple have been together for more than 20 years, or if the age of the dependant party plus the number of years of the relationship equals 65, support will be paid indefinitely.</blockquote> | ||
The low range formulas for duration are: | <blockquote>The '''low range''' formulas for duration are:</blockquote> | ||
1) 0.5 years for each year of the relationship | <blockquote><blockquote>1) 0.5 years for each year of the relationship</blockquote></blockquote> | ||
2) the length of time remaining until the youngest child starts full-time school | <blockquote><blockquote>2) the length of time remaining until the youngest child starts full-time school</blockquote></blockquote> | ||
The high range formulas for duration are: | The '''high range''' formulas for duration are:</blockquote> | ||
1) 1 year for each year of the relationship | <blockquote><blockquote>1) 1 year for each year of the relationship</blockquote></blockquote> | ||
2) the length of time remaining until the youngest child finishes full-time school | <blockquote><blockquote>2) the length of time remaining until the youngest child finishes full-time school</blockquote></blockquote> | ||
I told you it was complex. To quote Professor Thompson, "this is not a calculation you can do on the back of an envelope, you will need a computer program." This formula requires a detailed understanding of how income is determined under the Advisory Guidelines and of the various government benefits, tax deductions and tax credits that can apply to adjust net income. I've written a paper on the subject for the Department of Justice, "Obtaining Reliable and Repeatable SSAG Calculations," which is available to the public. Be warned: it's a bit dry. | I told you it was complex. To quote Professor Thompson, "this is not a calculation you can do on the back of an envelope, you will need a computer program." This formula requires a detailed understanding of how income is determined under the Advisory Guidelines and of the various government benefits, tax deductions and tax credits that can apply to adjust net income. I've written a paper on the subject for the Department of Justice, "Obtaining Reliable and Repeatable SSAG Calculations," which is available to the public. Be warned: it's a bit dry. | ||
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The factors this formula uses are: | The factors this formula uses are: | ||
the payor's gross income; | #the payor's gross income; | ||
the recipient's gross income; | #the recipient's gross income; | ||
the length of time the parties lived together; | #the length of time the parties lived together; | ||
the recipient's age; | #the recipient's age; | ||
the number of children child support is payable for; and, | #the number of children child support is payable for; and, | ||
the number of years until the youngest child starts and leaves full-time school. | #the number of years until the youngest child starts and leaves full-time school. | ||
===The Other With Child Support Formulas=== | |||
The Advisory Guidelines describe a few other formulas that apply when: | The Advisory Guidelines describe a few other formulas that apply when: | ||
all of the children are over the age of majority; | #all of the children are over the age of majority; | ||
the parents have split custody of the children; | #the parents have split custody of the children; | ||
the parents have shared custody of the children; | #the parents have shared custody of the children; | ||
the children live with the payor; or | #the children live with the payor; or | ||
the children are step-children to the payor | #the children are step-children to the payor. | ||
These formulas use modified or hybrid versions of the Without Child Support and main With Child Support formulas. | |||
==Restructuring the Advisory Guidelines Results== | |||
The Advisory Guidelines include a few ways to accommodate circumstances that might make the formulas' results unfair to the people involved. The Advisory Guidelines requires that the parties first attempt to use the ranges to solve the problem, but allows for the results to be "restructed" if adjustments within the ranges fail to solve the problem. | The Advisory Guidelines include a few ways to accommodate circumstances that might make the formulas' results unfair to the people involved. The Advisory Guidelines requires that the parties first attempt to use the ranges to solve the problem, but allows for the results to be "restructed" if adjustments within the ranges fail to solve the problem. | ||