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  • Help with CS/SS wording on Sep Agreement

    Well we are working on our Seperation Agreement and looking for some input...

    Married for 6.5 years, 1 child who is 2 years old.
    Going to split debt and assets 50/50.

    We want to share custody of our son (50/50) Sun-wed / wed-sat or something similar....

    She can claim child as dependent on Income tax
    She gets the Child Tax Benefit $100/month
    She gets Child Tax Credits. She gets all of it ($unsure of total still waiting for paperwork)
    She applied for Daycare subsidy and was approved, most is covered ($500+), I will pay remander. $150 ish/month
    I will continue to pay for Childs Medical/Dental insurance
    I will pay %50 of extra activities (hockey gear, school trips, other sports when he is older)

    I make $60k, she will make $25-$35k ish (more when she finds a better full time job)

    So if we draw up an agreement like this, What will I be looking at for SS / CS?
    We would really like to settle this fairly for both parties...and still have $$ for food.

    Thanks again.

  • #2
    My comment is that the agreement should not state SHE and HE, it should base things on, for example, who makes more money in a particular year. You never know what the future will hold for your incomes.

    Also make all payments etc, adjustable automatically every year, perhaps in July when the taxes have been processed so you know how much you actually made the year before. This avoids using the court to adjust things.

    Although the child is young, don't forget to be very specific about when CS should end. Also perhaps, mandate that a certain % of income each year go toward an education fund so that when the child is ready for school the money is already there and proportioned appropriatley.

    CS is easy - look up 6Ok CS amount in on line CS tables, and look up 30 K CS amount, and you pay her the difference.

    SS should be based on damage to her career, or alternatively to set a time when she is back at the earning capacity she would have been at if she never married. Make sure it is time limited and automatically ends - again to avoid the courts. My view on SS (especially considering your short marriage), is that what each of you makes is not really relavent, it is more important what happened to your income potential as a result of the marriage that needs to be compensated for.

    Sounds like you guys are doing well, I hope it continues, and I wish you the best.
    Last edited by billm; 04-23-2009, 10:38 PM.

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    • #3
      Thanks Bill again for the great advise.
      We are having a bit of trouble coming to an agreement on the S/S...I dont feel her being off work for 2 years has hurt her ability to earn income, she worked retail before, and will work retail again, would have stayed in retail most likely.

      My question, would wording like "after the sale of the matromonial home, a 1 time payment of $3000 (or something?) will go towards her for spousal support?

      Thoughts on wording and amounts?

      And when does child support end? When the child is 18?

      thanks.

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      • #4
        IMHO - a lump sum payment towards SS isn't the best solution. I believe CRA may not permit you to write the payment off against your taxes. In the CRA guideline (IT-530R - Support Payments) it states that the payment is to be "periodic". I would check with CRA... Also, should your ex spend the lump sum and need/want more $, she can come back to you.

        I don't know if SS is warranted at all, personally. If there is a disparity when total expenses have been calculated (setting up separate households, childcare expenses), then you can propose monthly payments as SS. However, I agree with BillM - make sure it is time limited and will end automatically.

        CS ends when the child is no longer "dependent"; ie. over 18 and not enrolled in a full-time program of study. You can find more information at: Community Legal Education Ontario (CLEO) - Publications by Subject - Family (Child Support and Child Support Guidelines)

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        • #5
          I noticed no mention of Life Insurance for the respective parties should something happen to either parent.

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          • #6
            Originally posted by logicalvelocity View Post
            I noticed no mention of Life Insurance for the respective parties should something happen to either parent.
            Very good point! Im pretty sure both of us are covered under my work insurance even when seperated.

            Im going to look into it.

            Thanks!

            Comment

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