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  • spousal support - how bump in HER income can change support payment?

    Hello, we have agreed to an amount of spousal support for 30 months. It's not exactly calculated the way the guidelines suggest, but both are happy with results.

    We need to figure out how to adjust for any change in her income. Assume right now, she is unemployed. If she starts making any money, her income goes up, mine stays same. Ignoring how child support changes, what are common ways to adjust for her change?

    For example, I'll get 1700/month, she'll get 1300/month of total 3000/month (because I'm saddled with a hefty car payment which is why it isn't 1500/1500). If she gets a job and makes 1000/mth net, she'll be making 2300/mth, me 1700/mth still. If she makes 2000/mth net, she goes up to 3300/mth, i'm still at 1700/mth.

    Would taking her last 6 months of net income and adjusting for the following 6 months work?

    Any advice is appreciated but we're not going to use the formulas and stuff to create a big confusing calculation, we just want this one issue resolved.

    Thanks,

    Dan

  • #2
    If it is a hard limit of 30 months, do you really want to write in a change? I say this because you will complain if she doesn't get a job that she has no incentive to work, etc etc. If it is a strict amount, then she has full incentive to get work ASAP, this is to her maximum advantage and meanwhile during this time she is proving she can work and ends up with no argument to extend the support later.

    See the spousal support in terms of a lump sum, only you are paying in installments. The support is so she can get on her feet and be independant. So yes, if she starts earning $40k per year she will come out ahead, but she will be able to establish herself and then you are free of it permanently. If the support reduces, then she can wait, stay unemployed, get a part time job etc, has no incentive to work full time because she ends up with the same income either way. Now, you know her better than I do so you have to be the judge of this.

    OK to answer your question though, calculate your NET DISPOSABLE INCOME. How much you have left over after tax and living expenses. Now look at what hers is after tax and living expenses and receiving support. Figure out what percentage she is at compared to your income. Is it equal (too much) or is it 30%, 40%, 50%? Work with that percentage and if her income goes up, the support is adjusted to stay at that percentage. In family law they usually look for it to be 45% but this is a private agreement between you, you can choose what you want.

    Normally agreements are written to adjust the amount yearly based on the income tax assessment you receive around May. However you can write in that you want income disclosure every 6 months and an immediate adjustment, but this is more than is usually done and she may not go for it. Again, for a 30 month duration you would likely only adjust it once if at all if you were using a standard agreement. You would likely adjust the payments starting in June according to the previous year's confirmed income in the assessment received in May.

    With an amicable agreement between the two of you, it can be whatever you want, but if you push her too much it may not stay amicable. So it is hard to advise without knowing where her stance is on all of this. Maybe she's fine with reporting to you regularly, but most people don't like reporting to their ex's every few months, it is too intrusive.

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    • #3
      What if you suggest starting at one amount, and it lowers automatically every six months until it reaches zero at 30 months? That's good help at the start, but kind of encourages her to find employment instead of just sitting around, and avoids you feeling like you're being taken advantage of when she does so.

      Comment

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