I am looking into my experience for Child/Spousal support, and find that system is extremely inefficient.
Let's consider hypothetical example:
1. It is July 1st, year 2019, you just exchanged NOA for 2018. Two people working on T4, there is single source of income. Your entire income is reported on line 15000. In order to establish or adjust CS/SS payments, if you are on non speaking terms with your ex you'd have to hire a lawyer, calculate Divorce Mate, make a motion, get a court date somewhere 8 months away, attend hearing etc. The judge would look at the attached DM, and will point to midrange SS scenario.
You then submit to CRA your spousal support payments receipt for tax deductions.
This process would cost around 15k for each side in legal fees, and countless amount of time wasted.
2. It is July 1st year 2020. Repeat steps in #1
3. It is July 1st year 2021. Repeat steps in #1
...
4. It is July 1st year 2040. Repeat steps in #1
It costs you tons of money every year even if you would be filing new 14B on consent.
There are few factors affecting the support calculations:
1. Your/ex age.
2. Children age and residency.
3. Your/ex income on line 15000.
However, exactly same facts are used for Child Tax Benefits, and therefore CRA does have this info and could automatically adjust the support payments either via monthly payments or once a year tax return process.
I would suspect both payor and receiver would prefer system doing it for them automatically (and for free), and would go to court only in hard cases i.e. when ex hides income, runs a corporation etc. where you can't establish true line 15000.
Am I missing something?
Let's consider hypothetical example:
1. It is July 1st, year 2019, you just exchanged NOA for 2018. Two people working on T4, there is single source of income. Your entire income is reported on line 15000. In order to establish or adjust CS/SS payments, if you are on non speaking terms with your ex you'd have to hire a lawyer, calculate Divorce Mate, make a motion, get a court date somewhere 8 months away, attend hearing etc. The judge would look at the attached DM, and will point to midrange SS scenario.
You then submit to CRA your spousal support payments receipt for tax deductions.
This process would cost around 15k for each side in legal fees, and countless amount of time wasted.
2. It is July 1st year 2020. Repeat steps in #1
3. It is July 1st year 2021. Repeat steps in #1
...
4. It is July 1st year 2040. Repeat steps in #1
It costs you tons of money every year even if you would be filing new 14B on consent.
There are few factors affecting the support calculations:
1. Your/ex age.
2. Children age and residency.
3. Your/ex income on line 15000.
However, exactly same facts are used for Child Tax Benefits, and therefore CRA does have this info and could automatically adjust the support payments either via monthly payments or once a year tax return process.
I would suspect both payor and receiver would prefer system doing it for them automatically (and for free), and would go to court only in hard cases i.e. when ex hides income, runs a corporation etc. where you can't establish true line 15000.
Am I missing something?
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