Spousal support is the funds paid by one spouse to the other after they separate or divorce. Its purpose is to prevent financial difficulty and foster economic sufficiency for a parent individual after the breakdown of the relationship.
Chapter 7 and 8 of the Spousal Support Advisory Guidelines examines two basic formulas used to calculate spousal support in Ontario. The formula used is determined by whether the payor will be paying both spousal and child support.
Spousal Support Formula: Without Child Support
This formula applies to marriages of all lengths where the spouses have no children or where the children are older and no longer dependent. It relies on the concept of merger over time, meaning that as the marriage lengthens, spouses have deeply merged their economic lives, resulting in greater claims to the marital standards of living. The support amount ranges from 1.5 to 2 per cent of the difference between the spouses’ gross income amounts for each year of marriage or cohabitation, up to a maximum of 50 percent.
The Guidelines also consider the spouse’s age when determining support. Support duration ranges from half to one year for each year of marriage or cohabitation, with duration becoming indefinite after 20 years of marriage. Indefinite spousal support may also consider if the marriage lasted over 5 years and the years married added to the support recipient’s age at separation total to 65 or higher. This formula is used because it reflects the diminished earning capacity of parties who will soon be reaching retirement age.
Spousal Support Formula: With Child Support
The with child support formula places priority on child support obligations over spousal support. The calculation for this formula is based on the Individual Net Disposable Income (INDI) for each parent as shown below:
For the payor: The Guidelines income amount- child support- taxes and deductions + any government benefits and credits.
For the recipient, this amount is: Guidelines income amount- notional child support- taxes and deductions + government benefits and credits.
Depending on the familial circumstance, one of the following formulas will be used to determine spousal support.
1. Basic formula
In these cases, child support is deducted from the payor’s income and then that child support amount plus a notional amount for support is deducted from the recipient’s income.
2. Shared custody formula
These cases occur when each parent shares at least 40 percent of the parenting time. The amount range would be the amount of spousal support which would leave the children in each household with roughly similar standards of living.
3. Split custody formula
These are cases where each parent has primary care of at least one child. For instance, the sons of the marriage reside with the father and the daughters reside with the mother. Unlike a shared custody formula, a 50/50 INDI split will not apply. Instead, each parent obtains a deduction from the table amount since they both spend a larger portion of their income on child support, thus reducing the funds available for spousal support.
4. Step-child formula
If the Court finds that a step-parent has demonstrated an intention to treat the child as a member of the family or stood in the place of a parent to the child, in loco parentis, they may have a support obligation. If a step-parent is paying child support in the place of a parent, the Court may order an amount of spousal support that is appropriate.
5. Adult child formula
This formula only applies where the child of the marriage has their child support fixed under section 3(2)(b) of the Child Support Guidelines. Examples of an adult child is one who is pursuing post-secondary education or disabled and dependent on social assistance. This formula is determined by constructing a monthly budget of the child, assessing the child’s contribution first and then dividing the balance between the parents respective to their incomes.
6. Custodial payor formula
In these cases, the higher-income payor of spousal support is also the primary or custodial parent. Consistent with the priority to child support before calculating spousal support, each spouse will have deducted the grossed-up amount of table child support plus the grossed-up value of their s.7 contributions. The range for amount generated by this formula is already adjusted for the costs of child-care for the custodial parent.
Blackburn Lawyers is made up of a team of dedicated lawyers who are pleased to provide support and guidance with your family law matters. If you have questions about support calculations or obligations, contact our lawyers today.
Disclaimer: This blog sets out a variety of information relating to the law that is to be used for educational purposes and is not legal advice for your particular situation. The author of this blog does not intend for this blog to be a source of legal advice.
Written by: Adriana Totera
* Please note that the information in this article is not intended as legal advice, but rather as a general overview on the subject. If you are seeking legal advice, please consult with a lawyer.
