Spousal Support Calculator
Ok listen up guys (and girls) First a comment.
While I am sure we all appreciate the excel spousal support calculator that someone originally posted here, it is inaccurate. Here are just a few examples of why...
(1) As someone pointed out, it doesn't take into account CPP and EI which are deductions before spousal support is calculated. Remember spousal support is based on net income not gross so it is complex. Also CPP and EI deductions reduce tax payable as they are tax credits.
(2) There is also the health tax which isn't accounted for.
(3) There is also the basic personal exemption.
(4) For Ontario there is also sutaxes when your income reaches a certain level.
There is much more but it is too time consuming and complex to go into right now.
Second, here is what I dfiscovered lawyers (or law clerks) are doing wrong which can dramatically affect the correct spousal support.
(1) They are not correctly taking into account deductions for life insurance/LTD/health insurance which are deductions before spousal support is calculated. I caught both my lawyer and oppsing counsel making the same mistake. They entered it under tax deductions instead of the cash flow section
(2) They didn't take into account a tax credit she gets for ontario property tax.
(3) They completely messed up the pension (besides the spousal calculator calculates it wrong Their theory is that the tax break should be given but actual deduction not taken into account. This is completely flawed logic. It only works under one scenario - where the high income spouse has a pension and the lower income spouse has no pension. The higher income spouse is accumulating an asset where the lower income spouse is not. In this case it works. But what if both spouses have equal pension plans but one has to contribute and the other does not? It simply doesn't work because the contriburing spouse should get the deduction as well.
(4) They lump all line 101 and line 104 together. Problem is line 101 is subject to cpp and EI where line 104 is not.
Anyway that is just a few examples of how incompetent these people are. Income assessment is complex and each individual situation is different. So likely if you think you are paying too much spousal support, you probably are. I can tell you why and help you get it reversed just like I am doing for myself.
Ok listen up guys (and girls) First a comment.
While I am sure we all appreciate the excel spousal support calculator that someone originally posted here, it is inaccurate. Here are just a few examples of why...
(1) As someone pointed out, it doesn't take into account CPP and EI which are deductions before spousal support is calculated. Remember spousal support is based on net income not gross so it is complex. Also CPP and EI deductions reduce tax payable as they are tax credits.
(2) There is also the health tax which isn't accounted for.
(3) There is also the basic personal exemption.
(4) For Ontario there is also sutaxes when your income reaches a certain level.
There is much more but it is too time consuming and complex to go into right now.
Second, here is what I dfiscovered lawyers (or law clerks) are doing wrong which can dramatically affect the correct spousal support.
(1) They are not correctly taking into account deductions for life insurance/LTD/health insurance which are deductions before spousal support is calculated. I caught both my lawyer and oppsing counsel making the same mistake. They entered it under tax deductions instead of the cash flow section
(2) They didn't take into account a tax credit she gets for ontario property tax.
(3) They completely messed up the pension (besides the spousal calculator calculates it wrong Their theory is that the tax break should be given but actual deduction not taken into account. This is completely flawed logic. It only works under one scenario - where the high income spouse has a pension and the lower income spouse has no pension. The higher income spouse is accumulating an asset where the lower income spouse is not. In this case it works. But what if both spouses have equal pension plans but one has to contribute and the other does not? It simply doesn't work because the contriburing spouse should get the deduction as well.
(4) They lump all line 101 and line 104 together. Problem is line 101 is subject to cpp and EI where line 104 is not.
Anyway that is just a few examples of how incompetent these people are. Income assessment is complex and each individual situation is different. So likely if you think you are paying too much spousal support, you probably are. I can tell you why and help you get it reversed just like I am doing for myself.
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