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Old 01-05-2011, 04:41 PM
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Default Notional Grossed Up Child Support Amount?

Friends,

I searched, I really did, but came up snakeyes.

In preparation for going through The Big Scary Process, I am trying to ensure that the offers I have made are reasonable and generous and am wrestling with the term "notional grossed up child support amount."

Recap: I am a custodial SS payor. I have the kids 100% of the time, mom lives 3 provinces away, yadda yadda yadda.

Under the SSAG, we start with the "without child support" formula adjusted as follows:

(1) Reduce the payor spouse’s Guidelines income by the grossed-up notional table amount for child support (plus a gross-up of any contributions to s. 7 expenses).

(2) If the recipient spouse is paying child support, reduce the recipient’s Guidelines income by the grossed-up amount of child support paid (table amount plus any s. 7 contributions).

(3) Determine the adjusted gross income difference between the spouses and then quantum ranges from 1.5 percent to 2 percent for each year of marriage, up to a maximum of 50.

(4) Duration ranges from .5 to 1 year of support for each year of marriage, with the same rules for indefinite (duration not specified) support as under the without child support formula.

They provide an example as well:

Example 8.6

Matt earns $100,000 gross per year and has custody of two teenage children. Anna earns $30,000 gross per year. The spouses separated after 16 years together. There are no s. 7 expenses. Assume entitlement to spousal support has been established.

First, Matt’s income is reduced by the table amount for two children, $1,404, grossed-up to $2,525 per month or $30,300 annually. Matt’s reduced income would thus be $69,700.

Anna is required to pay child support at the table amount of $444 per month, grossed-up to $625 monthly or $7,500 annually. Anna’s reduced income would be $22,500.

After a 16-year marriage, Anna would receive a range of 24 to 32 percent of the adjusted gross income difference of $47,200.

Under the custodial payor formula, Matt would pay spousal support in a range from $944 to $1,259 per month, for a duration of 8 to 16 years.

What I need to know for my purposes, is what this notional grossed up amount is or, more to the point, how it is calculated: How did they get from $1404 to $2525 in the example above?

Thanks,

Cheers!

Gary

Last edited by Gary M; 01-05-2011 at 04:51 PM.