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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 03-17-2014, 11:45 PM
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Default ? about section7 calculations

Can someone please clarify if this is correct ? If section 7 expenses are to be paid in proportion to the parties incomes....is spousal support (if owed) added to the recipients income before calculation of percentage? (but child support is not) Also (more technical point here) Mysupportcalculator discusses in its footnotes that it is the net cost of section 7 that is to be divided(cost after any tax savings). How is net cost accounted for through the Divorcemate calculation? Anyone know? Thx!
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Old 03-18-2014, 05:23 PM
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Quote:
is spousal support (if owed) added to the recipients income before calculation of percentage?
Yes. Support calculations go as follows:

1. Child support, based on gross income.

2. Spousal support, based upon post-CS incomes (ie "with child" formula).

3. s.7 expenses, based upon post-support modified incomes.

Some people will argue only SS modifies income, as only SS impacts your taxable income. My opinion is that all support should be included, but do not recall whether this has been litigated to satisfaction and invite any case law on it (Tayken?).

Quote:
Mysupportcalculator discusses in its footnotes that it is the net cost of section 7 that is to be divided(cost after any tax savings).
Example - sport costs $1k in the summer, but the parent that pays for it saves $100 in taxes because of a tax credit; thus the total expense is now only $900.

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How is net cost accounted for through the Divorcemate calculation?
Divorcemate is an excellent tool for rules of thumb, however it is not perfect. The more sophisticated calculations can come out incorrectly. In particular, lump sum support is so far wrong some people speculate it is deliberately so wrong as to guarantee that parties figure it out on their own instead of a "less wrong" solution that might be accepted blindly.
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Old 03-18-2014, 11:27 PM
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Thanks for the Reply post and clarification. . Divorcemate is far from perfect in my opinion. One has to be a lawyer and a chartered accountant to use it properly... it can be manipulated and twisted to unfair advantage depending on how the numbers are inputted. It has given me much headache and has cost me much in an effort to find out the "right" way to use it. But that's for another post. Thx again!
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