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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 06-26-2017, 11:55 PM
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Default Yearly child SS/CS calculation

Dear members, as yearly the income tax information has to be exchanged with the ex-spouse, the use of the Divrocemate software becomes a must. Does anyone know of a paralegal that has the software that I can run in the numbers. is there any other way rather paying the ridiculous legal fees?

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Old 06-27-2017, 12:26 AM
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There are online calculators, where you just plug in the income and number of kids and province and it spits out the table CS for you? Updating annually shouldn't need Divorcemate.


http://www.justice.gc.ca/eng/fl-df/c.../look-rech.asp
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Old 06-27-2017, 12:27 AM
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Can this online calculator be used for self employment income?

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Old 07-01-2017, 11:29 AM
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Are you incorporated or unincorporated? Is your agreement that it will be last complete tax year or an average because self employment income can fluctuate?

If you are just looking to adjust child support, you just need to figure out your income and then any calculator online will figure out child support based on the tables.

Or is it spousal support which will be much more complex?

What are you trying to recalculate?

Divorcemate is garbage - forget Divorcemate.
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Old 07-04-2017, 12:02 PM
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I am incorporated and my agreement is last year complete tax year

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Old 07-05-2017, 11:56 AM
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You should read my posts on self employed income. Your T1 will almost certainly not reflect your proper income.

Are you 100% owner of this corporation? You've got a double whammy against you unfortunately. It is hard to calculate self employed income (no lawyer or Judge can do it) and Divorcemate does not calculate it properly even if correct income information is entered.

Here are some general guidelines for you.

Your corporation may not have a calendar year end (December 31st) so your T1 and your corporate fiscal year could be mismatched.

So concentrate on the corporation. You need to gather the following in front of you. Your Notice to Reader Income statement (Schedule 125 on the T2) and your Notice to Reader Balance Sheet (Schedule 100 of the T2). You also need Schedule 1 of the T2 (Reconciliation of Profit or Loss for tax purposes).

Look at the before tax profit on Schedule 1. It will say something lo the effect of this line goes to line 300.

That is an imputed dividend to you and is part of your income. There may be other adjustments but that is a starting point.

Here is what Divorcemate has to say about what it does...

"Note that the software will automatically calculate the dividend tax credit".

In a previous post, I mentioned why this is stupid and the other major program (Childview) correctly does not do this. The purpose of the dividend tax credit is to prevent double taxation. Dividends are paid out of AFTER tax corporate profits. The amount is then grossed up to become the before tax corporate profit. This means that Divorcemate should not calculate the dividend tax credit. as it needs to take both corporate and personal taxes into account before calculating child/spousal support.

Now look at your income statement. If you paid yourself a salary, identify the salary that was expensed that you paid yourself. It may not be exactly what you received because it could include employer CPP or other benefits.

Unfortunately here is how Divorcemate screws up again. Here is what they say

Employment income
If the party is employed (ie. receives a T4 slip), input the appropriate gross annual income prior to deductions, including any taxable benefit amounts that are or will be subject to income tax (T1, Line 101; T4 slip, Box 14).
(Note that income of corporate owners who don't pay EI, but pay double CPP, should be input under "Self- employment income (net)" to ensure proper treatment of this income by the software.)

This has the effect of deducting 3X CPP if you do what they say. Twice through the salary on the T1 and once through an expense on your corporate income statement. What they should do but can't seem to figure out is to input it on line 101 but have an option to not have it deduct EI. It would then take 1X on the T1 and 1X on the income statement = 2X But they are Divorcemate so they are too stupid to figure this out.

There could be other adjustments such as personal expenses that are deductible by CRA but are not allowed by Family Court (ie business use of home expenses) There could also be non tax deductible expenses on your corporation that are deducted for child/spousal support purposes (ie a life insurance policy where the ex is beneficiary).

There are just too many variables to go through every possible scenario. If you need further assistance, private message me.
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