Spousal Support Calculation Needed

[bushmonkey2010]

Me: $120,000 Gross (89,000 base with $30,000 overtime).
Her: $15,000 Gross
Marraige: 29 Years
Kids: 2 (educated and gone)

Residence: $350,000
Cottage: $250,000

I want to mitigate Spousal Support by giving her the matrimonial home and I get the cottage. The disporportional property split is $100,000. Will this reduce my Spousal Support? What type of monthly payment would I be making?

[Mess]

SS would be calculated as 1.5 to 2 % of the difference between your gross incomes, times the years of marriage. It caps at 50%. You were married for 29 years so it would be 43-50%.

The difference between your gross incomes is $105k. Your are looking at around $45k-$52k by my rough calculations.

If you offered her the house and call it a lump sum of $100k then this is only equivalent to 2 years of spousal support.

You don't give your ages, but after a 29 year marriage you would expect SS to be indefinate.

Keep in mind that spousal support is a tax deduction at your end, and taxable at her end. Transfering the house would not be tax deductable for you, nor would any lump sum payment. Only monthly payments are deductable. Don't ask me why, take it up with the CRA.

If you and she come to an amicable agreement, you could point out the tax differential and value the transfer of the house at possibly as much as +40%. However expect her lawyer to push for a better deal than that.

You also have to have the separation agreement very clearly worded to that it is iron clad, that the transfer of the house is worth $xxxxxx.xx in terms of spousal support. Simply giving her the house on some kind of "understanding" will leave you open to being sued later on for support.

Keep in mind that courts will look at her need at the time (potentially several years from now) not what you gave her with the house value. The house may have an assessed cash value, but that isn't necessarily something she can buy groceries and pay the hydro with. I realize this won't seem fair, but I am preparing you for possible arguments you will face later on. What I am driving at is that you MUST double check everything with an experienced divorce lawyer and make sure any deal you sign is iron-clad.

[bushmonkey2010]

Thank-you for the information. Now to Plan "B"...

I can retire next year with a pension of $3500/month. Of course she gets half of it ($1750/month), which I have no problem with.

I plan to continue to work within a "numbered company" and will pay myself $15,000/year. Will this strategy reduce my Spousal Support to zero?

[Lorac]

I've been married for 34 years...separated for 6 months...he's going after me for spousal support...we sold our home...he's 62 and I 61...both have medical issues...our lawyers are fighting it out...and all I take in, in a month "total" is 2100.00. After I pay for my rent, food ect ect I have 100.00 left and he's going for support payments of $563.00. He also wants costs, has most of the furniture, the vehicle. Should I die before him he gets my work pension because he is the main beneficiary at my time of retirement and it's irrevocable. He's an only child...mother is 84...he will get her estate...and her work pension because he is her only beneficiary...then in 3 years he get Old age security...Yet because of the length of our marriage he's entitled to 1/2.
Sighhhhhhhh