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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 23:23, 16 July 2019
, 23:23, 16 July 2019→The main With Child Support formula
Nate Russell (talk | contribs) |
Nate Russell (talk | contribs) |
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===The main ''With Child Support'' formula=== | ===The main ''With Child Support'' formula=== | ||
This formula is a lot more complex. In | This formula is a lot more complex. In the With Child Support Formula, child support is taken out of the payor's gross income and the recipient's income, taxes are taken into account, and government benefits are added to the recipient's income. The reason why child support is deducted from the recipient's income is to reflect the <span class="noglossary">costs</span> that parents bear in raising the children. | ||
'''Amount:''' The ''amount'' of support is 40 to 46% of the payor's individual net disposable income plus the recipient's net disposable income. | |||
The ''payor's net disposable income'' is their gross income, minus taxes and minus their child support obligation, including the tax credits they receive as a result of paying spousal support. | |||
The ''recipient's net disposable income'' is their gross income, minus taxes and minus their notional child support obligation, plus any government benefits they receive, less the taxes payable as a result of receiving spousal 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>''Example:'' 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>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> | |||
'''Duration:''' 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. | |||
The ''low range'' formulas for duration are: | |||
<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> | |||
The ''high range'' formulas for duration are: | |||
<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> | |||
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 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. | ||