Announcement

Collapse
No announcement yet.

CS Offset when 50/50 contino & tang vs ma

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

  • CS Offset when 50/50 contino & tang vs ma

    There seems to be a lot of confusion on this issue. Let's assume both parents agree on 50/50 access from the get go. The normal approach is straight offset. That is, if husband table amount is $1,000 and wife is $700, then husband pays wife $300.

    However, issues raised in Contino and Tang vs ma suggest that in 50/50 the pro-rated set off is used. using above example, husband pays 50% of $1,000 or $500 and wife pays 50% of $700 or $350. Husband therefore cuts a cheque to wife for $150 each month. It makes sense given that each parent cares for the child half the time and thus incurs 50% of expenses.

    Can anyone give input over which is the "correct" approach. A member here called TAYKEN in an earlier post gave the tang vs ma decisioni which suppported the pro-rated set off albeit in a "interim" CS decision.

    This is obviously a very important issue. Any comments would be most appreciated.

  • #2
    The pro-rated set-off is more logical, and more consistent with table usage in sole custody cases.

    Sole custody (e.g. 30/70) formula
    - assumes that only CP incurs expenses (hah!)
    - assumes that table amounts define EACH parent's contribution, hence the child's total 'cost' is the 2 table amounts added (1000+700)
    So, CP incurs $1700 expenses, and NCP must pay $1000.

    Joint Custody (e.g. 50/50) formula
    - assumes expenses are incurred equally by both parents
    - SHOULD be the same assumption on table amount usage as for sole custody i.e. child's total cost is still 1000+700 (1000 from higher earner, 700 from lower earner).
    Which means that each parent incurs $850 expenses, so higher earner must pay $150 (not $300)

    But...
    - are both parents really incurring equal expenses?
    - does 50-50 imply an increased total cost for the child? (if you believe that NCP in sole custody case incurs no expenses, then yes, 50-50 DOES imply higher total cost)

    'Correct' is whatever fits best (that you can argue) for your specific situation.
    Last edited by dinkyface; 07-07-2011, 05:39 PM.

    Comment


    • #3
      As far as which method to use (ie. straight set off or pro-rated set off) would it matter if there was a large discrepency between the two parents. For example, still 50/50 custody but wife earned $25,000 and father earned $125,000 ?

      Comments ?

      Comment


      • #4
        First, you have to believe the table amounts are set appropriatey for every income level (that's not something you want to start arguing about).

        BUT, the large discrepancy would strongly imply that the higher earner is incurring a larger share of the expenses. I'd think it would be fairly easy to prove that this is the case.

        The argument then turns into one about WHO controls what the money is spent on, and during whose time. For example, the lower earner could say that hey, the combined yearly table amount is $20000, which means I should be able to control $10000 of that spending, and the child should enjoy the benefits of that $10000 during their time with me. And it seems like a fair argument to me (to a point - people should be accountable to their career/work choices). So, consider in your arguments what the money is being spent on, who controls spending, and where/when the child is experiencing the benefits.
        Last edited by dinkyface; 07-07-2011, 05:54 PM.

        Comment


        • #5
          set-off prorated assumes that costs to raise the child in two homes are the same as raising the child in one home, which is obviously not true.

          The straight set off assumes it costs twice as much, which is also not true.

          So the best solution would be somewhere between. But math and courts don't seem to get along.

          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