Announcement

Collapse
No announcement yet.

Support Guidelines

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Support Guidelines

    Hello,

    My wife and I are separated (8 months). We were married and living together for less than 2 years. The marriage was very short -- I am hoping I will not have to support her for years and years to come.

    I am concerned about her coming after me for spousal support. My income was 60k last year, and hers was 30k. Our property is divided but no documents were signed. She also emptied half of my bank accounts on the day she left Additionally, most of our money for the 2 years of marriage went towards her debts that she accumulated before we were together (about 15-20k).

    Do the courts take these things into consideration (ie money stolen, and large amounts of money going towards one persons debts)?

    Is there any guidelines about the amount of support I would have to pay, and for how long?

  • #2
    lukas,

    as you mentioned

    I am concerned about her coming after me for spousal support. My income was 60k last year, and hers was 30k. Our property is divided but no documents were signed.
    Perhaps she may be entitled to some spousal support in consideration of the differential in salaries. However, I do suspect any amount of spousal support claimed would be short in duration. If the party does come after you, you have no other resort than to respond to the action or come to some sort of amicable settlement.

    Spousal Support Advisory guidelines can be found here. These guidelines are not law, but more and more courts are referring to these guidelines for determining quantum and duration of same. A significant amount of case law now exists that have refereed to the guidelines for awarding spousal support.

    http://www.justice.gc.ca/en/dept/pub...idelines_e.pdf

    The without child support formula

    Under the basic without child support formula:

    • The amount of spousal support is 1.5 to 2 percent of the difference between the spouses gross incomes for each year of marriage.


    • Duration is .5 to 1 year of support for each year of marriage, with duration becoming indefinite after 20 years.

    60k - 30k = 30K (Low quantum 1.5 x 2 = 3) (High Quantum 2 x 2 = 4)

    LOW 30K x 3% = $900 monthly HIGH $1200 monthly
    duration would be 1 to 2 years.

    Now factor in the tax deduction available to you 900 x 12 = 10800 low or 14400 of earned income that you would not pay taxes on. Its not as bad as it seems.

    Be aware that the tax deduction is only available if the spousal support is paid in periodic payments and either a separation agreement or an order from the court providing same. If an amount is just given without either in place, it would be considered a gift and you would lose the tax advantage. Lump sums of spousal support are not tax deductible.

    lv

    Comment


    • #3
      are you sure that is right? If I paid 1200/month, that bring my gross monthly income down from 5000 to 3800, and bring hers up from 2500 to 3800.

      So, she would end up with a higher monthly income than I would. It seems unfair to me.

      Comment


      • #4
        I think the 900 and 1200$ may be annual values, not monthly.

        In those 'guidelines' theres an example of a 65k and 25k earning couple (10 years of marriage), and the monthly payments are only 500 (low) - 667 (high) a month....

        65 - 25 = 40
        (low) 1.5 * 10 years = 15% of 40k = $6000 annual / 12 months = 500$/month
        (high) 2 * 10 years = 20 % of 40k = 8000 annual / 12 months = 667/month

        ------
        so, i think my situation (according to that example) would be as follows:

        60k - 30k = 30k difference
        (low) 1.5 * 2years = 3% of 30k = 900annual / 12 months = 75$/month
        (high) 2* 2years = 4% of 30k = 1200annual / 12 months = 100$/month

        what do you think?

        Comment


        • #5
          lukas,

          yes you are correct, those amounts are annual not monthly.


          If you do factor in the tax deductions, in consideration of your respective tax bracket, the amounts are even less.

          lv

          Comment

          Our Divorce Forums
          Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
          Working...
          X