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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 05-01-2014, 02:59 PM
shellshocked22 shellshocked22 is offline
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Default spousal support count as "income" ?

Just curious....

Let's say an ex spouse (A)is receiving a significant amount of spousal support. Said spouse then becomes common law with a new partner (B)for the 3 year period and the new partner makes significantly less than the ex spouse receiving spousal support.

I realize common law spouses can attack each other for spousal support after three years co-habitation. Let's assume that much if not all of the income that A receives is spousal support which of course is taxable. Assuming "B"
goes after "A" for spousal support, and that is their only source of income, would they likely be successful ?

In other words, could a spousal support recipient in effect have to transfer some of his/her spousal support to his/her second partner in the event of a separation ?
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Old 05-01-2014, 03:19 PM
HammerDad HammerDad is offline
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Is it reported in their T1 as income? If yes, you have your answer.
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Old 05-01-2014, 03:29 PM
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arabian arabian is offline
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There are three components in determining spousal support: compensatory, non-compensatory and contractual. SS can be awarded on any one of these or all of these. Rule of 65 is examined.


Then you mix in need and ability to pay related to the three components of SS.

Spousal support paid one year is not used to calculate the amount of spousal support payable the following year. Spousal support received, as well as paid, is identified clearly on the income tax return.

Spousal support is to 'even the playing field' after the end of the marriage. A new partner's income could possibly be examined in determining need depending upon the nature of the SS (compensatory, non-compensatory or contractual).

Does that answer your question? LOL
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Old 05-01-2014, 03:48 PM
shellshocked22 shellshocked22 is offline
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Hi Arabian:

I think you misunderstood my question. It's not that I was wondering if MY spousal support will be reduced to my ex spouse due to her hooking up with a common law partner.

It was IF her new common law partner could in effect take some of her spousal support for his own spousal support (confusing I know lol).

The 2nd poster, if I understood his reply correctly, is essentially saying "yes".

Would certainly be "poetic justice" if down the road SHE had to pay spousal support to an ex boyfriend who earned less than her !!!!!!!
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Old 05-01-2014, 04:02 PM
HammerDad HammerDad is offline
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Quote:
Originally Posted by arabian View Post
There are three components in determining spousal support: compensatory, non-compensatory and contractual. SS can be awarded on any one of these or all of these. Rule of 65 is examined.


Then you mix in need and ability to pay related to the three components of SS.

Spousal support paid one year is not used to calculate the amount of spousal support payable the following year. Spousal support received, as well as paid, is identified clearly on the income tax return.

Spousal support is to 'even the playing field' after the end of the marriage. A new partner's income could possibly be examined in determining need depending upon the nature of the SS (compensatory, non-compensatory or contractual).

Does that answer your question? LOL
I think what OP was trying to get is whether or not SS could/would be used as income in the event a 2nd marriage fails.

A & B divorce. A pays B SS.

B gets into a new relationship with C.

Between SS and employment income, B makes more than C.

B and C breakup.

C is going after SS from B taking into consideration B's full income.

B wants their SS from omitted from the calculation as it means that C's claim to non-compensatory SS wouldn't hold up.
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Old 05-01-2014, 04:31 PM
shellshocked22 shellshocked22 is offline
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EXACTLY correct HammerDad !

So, bottom line, can "C" essentially take some of "B's" spousal support as their own spousal support ?
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Old 05-01-2014, 04:35 PM
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I don't like this question LOL --- sorry, I just don't. So new BF wants spousal support from a spousal support recipient. He changes his orientation and shacks up with original SS payee -even's things out, no?
A and B get divorced
A pays SS to B
B shacks up with C
B and C split up
C gets SS from B
C and A fall in love ............... (I need more coffee)
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Old 05-01-2014, 04:36 PM
DowntroddenDad DowntroddenDad is offline
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Quote:
Originally Posted by shellshocked22 View Post
EXACTLY correct HammerDad !

So, bottom line, can "C" essentially take some of "B's" spousal support as their own spousal support ?
C would have to have a reason to get spousal support, as you are well aware it isn't automatic.

If that was approved, then as you are also aware, they would look at the total income of B, which includes Spousal Support.

It isn't a matter of redistributing your spousal support. It is a matter of assessing how much B owes C based on their relative incomes.

And of course if A's SS stops, then that would be a material change in circumstances.
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Old 05-01-2014, 04:42 PM
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SS is not employment income and is not used to determine income for purposes of calculating SS.
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Old 05-01-2014, 08:10 PM
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Quote:
Originally Posted by arabian View Post
SS is not employment income and is not used to determine income for purposes of calculating SS.
Do you list it on your T1 as income? Do you pay taxes on it? Income is income, employment or otherwise. It isn't c/s which is for the benefit of the child.
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