User CP
New posts
Advertising

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

LinkBack  Thread Tools 


The final SS calculation is based on pretax (gross) income, but CS is not taxable (to recipient) or deductible (to payor), so it is an aftertax (net income) value. So table CS values must be converted into equivalent pretax (gross) values before they can be used in the calculation. This is called 'grossingup'.
$2525 before tax (gross) becomes $1404 (net) after you pay 44% tax on it. Not easily calculatable, because of tiered income tax rates, but you can keep plugging in gross income values into the income tax calculator in the www.taxtips.ca website until you come up with the matching net values. Paul's gross is 100000, which is 70140 net (according to Ontario 2010 calculator, single, with 2 kids under 17, ignoring child benefits). Subtract 7014012*1404 = 53291 (the new postCS net) By trying different gross income values in the calculator until we get this new net, we find new gross = 71330. 10000071330 = 28670 = 12*2389 (grossedup CS). So, 1404 monthly grosses up to 2389 monthly (2525 seemed a bit excessive to me!) Last edited by dinkyface; 01052011 at 05:33 PM. 


Ahhhh, OK, so they take the table amount and calculate what that amount would be if income tax, at your current rate, were added on.
OK, I think I can figure that one out.... Maybe Thanks df. Cheers! Gary 


Can someone please check my numbers?
OK, so, using the formula in my 1st post and the definition kindly provided by dinkyface, I came up with the following hypothetical. Assume tax rates of 44% for me and 20% for her, 16 years of marriage, and S7 expenses of $500/mo:
Income Me  90,000/year She  24,000/year Notional CS Me  1281 table, grossed up = 2288/mo = 27456/yr She  362 table, grossed up = 453/mo = 5436/yr Section 7 Me  400/mo = 4800/yr, grossed up = 8570/yr She  100/mo = 1200/yr, grossed up = 1500/yr Adjusted income: Me  90,000  27456  8570 = 53974 She  24,000  5436  1500 = 17064 For a difference of 36,910 Applying the 1.5%  2% rule for 16 years of marriage, we get a range of between 24% and 32% so... 24% of 36,910 is 8858/yr or 738/mo 32% of 36,910 is 11,811/yr or 984/mo How am I doing so far? So, if we assume that I can point to every possible reason for a lowrange award, I would pay 738/mo in SS and she would pay 462/mo in CS, for a net transfer, me to her, of $276/month. Am I wrong yet? If I'm right, then my last offer of $1000/mo SS in return for $500/mo CS AND increasing her share of my pension by another $20,000 can certainly be seen as reasonable and generous, right? Am I wrong? I hope I'm not wrong... Thanks in advance, Cheers! Gary 


Isn't it amazing how divorce makes us matmeticians and accountants? LOL



Agreed. I can forgive my ex for cheating, but not for making me do all that math.



I'm not sure but I think that ties the kitten from yesterday for post of the year so far.



Quote:
The kitten, hands down!!! 


Quote:
I told my ex once that his biggest mistake was not his cheating ... it was marrying an accountant whose father is an accountant. 


Quote:
 On another note, is nobody able to confirm or refute my figuring above? Thanks, Gary 
«
Previous Thread

Next Thread
»
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)  
Thread Tools  


Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Child Support and Spousal Support  BobbyShaftoe  Introductions  14  04262012 02:52 AM 
Who is responsible for Child Support  momof3  Divorce & Family Law  16  05122011 12:20 PM 
Spousal Equivalent for CRA  Cobourg  Divorce & Family Law  21  01142010 08:43 AM 
FRO & Child Support Adjustments  #1StepMom  Financial Issues  3  11092009 02:16 PM 
Protecting new Spouse's Assets  TODivorce  Financial Issues  5  03052007 01:49 PM 
All times are GMT 4. The time now is 07:50 PM.