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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 06-06-2017, 02:28 PM
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Default CS/SS - Please Help - Numbers and Considerations

Hello,

Some background. Married 14 years. 4 Kids (ages 6-14). My income ~ 120,000/year. Wife - zero income (in school part time). Shared custody (50/50 exactly).

We are going through mediation at the moment and i'm trying to understand the "fair" distribution of income.

I know my child support will be approximately $2600/month (as per guidelines), while the mediator stated that spousal support would be in the range of ~ 350 -> 1700 a month. My spouse also wants a 10 year duration.

I went with the assumption that we should strive for a 50/50 split of Net Disposable Income (i.e., cash in hand). This is from what I've read from the SSAG guidelines.

Unfortunately, after I:

1) Pay CS

2) Deduct applicable items (i.e., income tax, EI, CPP, benefits, life insurance); and

3) Add in Government Benefits (i.e., my wife will get significant more Canad Child Benefit)
My spouse would be left with the minimum amount of SS. Is my calculations and assumption correct?

My spouse is not happy with this arrangement, and says that based on a compensatory claim she should be getting more. In fact, if i give her the "midpoint" of the SS (apparently it's 1300/month, not sure how that the "midpoint", that would leave her with about 1500/month more than me.

Please help me understand. I really want this to be FAIR FOR HER and the kids.

Thanks
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Old 06-06-2017, 06:02 PM
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Quote:
if i give her the "midpoint" of the SS (apparently it's 1300/month, not sure how that the "midpoint", that would leave her with about 1500/month more than me.
SSAG calculators will often have a mid-point above the 50-50 NDI split.

Your best bet is to make an appointment with a lawyer and have them prepare calculations for you (with you present to help) based on your income tax return and your ex's income tax return. The numbers are too important, and a small error online is magnified over 120 months (presuming you pay support for 10 years).
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Old 06-06-2017, 09:56 PM
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Accidental post.

Last edited by ross_toronto; 06-06-2017 at 09:58 PM. Reason: Oops
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Old 06-06-2017, 09:59 PM
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keep in mind that SS is 100% taxable to her and often SS awards take that into consideration (along with the fact that you claim what you pay her for SS on your tax return).
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Old 06-06-2017, 10:22 PM
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Hi Arabian,

Yes - i understand that SS is 100% taxable to her (that being said, based on the financial we are undertaking, her income is ZERO and any SS amount under ~15k would be tax free). I also included in my "income" the tax break i would get from the SS.

My question is namely around "my approach" - i.e., should the goal be a 50/50 split of net income? Or...is there some other approach?

Orleans Lawyer - yes i will definitely ask a lawyer to run the numbers. Thanks!
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Old 06-09-2017, 02:04 PM
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Duration is typically have the years of the marriage/cohabitation. So if you were living together before marriage for 2 years it would be 16 divided by 2 = 8 year duration.

As for amounts, negotiate. With the cancellation of UCCB/CCTB and replaced with the income/tax free CTB maybe you can use that amount for 4 kids as her income for CS and SS to be less. For 4 kids that should be just under $20k a year or something.
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Old 06-09-2017, 08:33 PM
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The online free support calculator based on SSAG gives a range of about 350 to 900, so a midpoint about 625. The midpoint gives between 45-55 and 50-50 NDI split.

From what I've read, splitting NDI 50-50 is very generous on your part.

Last edited by dinkyface; 06-09-2017 at 08:40 PM.
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Old 06-11-2017, 04:19 PM
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Quote:
Originally Posted by OrleansLawyer View Post
SSAG calculators will often have a mid-point above the 50-50 NDI split.
As in "erroneously go above a 50-50 NDI split" or as in "correctly go above a 50-50 split"?

If it is the latter, is it because of the possible permanent income impairment experienced by the lower earning spouse in a compensatory SS situation?
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Old 06-12-2017, 05:13 AM
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It's my understanding if she's able to, i.e. not on a disability, she HAS to get some kind of a job. I.e. working at Tim Horton's. They are always highering.

If not, it's seen as avoidance.
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Old 06-12-2017, 05:15 AM
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Sorry, auto correct kicked in on the spelling error.
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