Income for SS - past or current?

[torontonian]

Ex wants to use 2012 income to determine SS. We are using current income (2012) for CS. I was under the impression that for Spousal Support we had to use line 150 of the 2011 taxes. We are both salaried employees, so both incomes are stable. Thoughts?

[Berner_Faith]

Is it making that big of difference if you use 2012 over 2011?

[torontonian]

About $15,000 worth... I know Tayken had worked it out to be a few 100s/month, but it's a lot when you add it up!! Also, I'd rather use a known entity (line 150)... Just wondering what is usually done. Thanks!!

[Berner_Faith]

As far as I know you always used the previous years income for CS, and I wouldn't assume SS would be any different. Is it that the income has decreased since 2011 and that is why you want 2011 and he wants to use a "new" income of 2012?

The only reason I am asking is because you seem to have been able to agree to use 2011 for CS and now the issue is for SS

[torontonian]

CS is based on 2012 income - I'm fine with that, the difference is minimal. Yes, my issue is the $$ decrease, the Ex has managed to cancel all consulting and overtime before we could set the SS amount... Thanks for your help.

[veritas]

Then set the SS based on a percentage of line 150 each year for review, this will take out any dodging.

[torontonian]

As per my original post, Ex wants to use 2012... not that easy to simply say NOPE ;P

[ddol1]

The Courts Love Status Quo!
your ex's desire to change after you have already established the method and the diffence does not seam to be drastically material (ex got run over by a cement truck and will seee income drop like a stone...... that would be a cause to look at things and alter status quo.

Actually to prevent the dodging that you say is occurring (reducing available workload etc). You go with the 3 year average and that would solve problem 1. Problem 2 would be ensuring to be fair that both of you are doing full disclosure. There are avenues you can take by filling certain forms to impute income if that is what you feel needs to be done. The hiding of income - there are some who can "lose" 50% of the income like that......... others maybe talking about a few hours per pay which is nowhere near the financial impact. Good to always keep in mind the cost of getting what you want or what you think is fair to the actual value of that which you are fighting for.

Do not spent 5K to fight a $500/year variance in income for example.

I f you put more than a fair offer on the table and your ex forces itinto the courts and you get the same or better than your original offer your ex will have a ton of costs to cover thiers and yours. Read once costs is the method to which courts handle idiots who refuse to negotiate! (liked that one - reminder to try and always be fair and go by "the rules" to divide the assets)

[torontonian]

Nothing's been set yet, trying to finalize the agreement. The costs recovered at the end will never compensate for the real costs + aggravation of trial. So back to my question: which income year do you use for CS and SS? (current income would not final and would need a review after a year)

[cashcow4ex]

You use the line 150 on your T4. Assuming your employer isn't a fortune teller then you need to use 2011's T4 as the T4 for 2012 isn't due for another 13 months.