MSC Advantage Child and Spousal Support Calculation

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MySupportCalculator.ca

Warning: This is the only accurate child & spousal support calculator in Canada. Other privately run spousal support

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MSC Advantage

Child and Spousal Support Calculation

Version 2020.0201

INPUT:

General Information

Required Dates Marriage/Cohabitation Separation Length of Marriage /Cohabitation 1 Children 2 Child 1 Child 2

Age 7 years 5 years

Graham

Income (annual) Employment income 4 Children's Special Expenses (annual) Child care expenses: 5

Paid to Provider Claimed on tax return

Susan

Income (annual) Self-employment income (net) 6 Children's Special Expenses (annual) Medical expenses: 7

Paid to Provider Claimed on tax return Extraordinary extracurricular expenses (fitness): 8 Paid to Provider

August 4, 2011 March 2, 2020

8.5 years Lives with 3

Susan Graham 40 years of age; Resident of BC

$90,000

$20,000 $8,000

40 years of age; Resident of BC

$60,000

$1,500 $2,000

$12,000



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RESULTS:

MySupportCalculator.ca

The federal Spousal Support Advisory Guidelines generate a range of spousal support. This calculator provides three possible monthly spousal support amounts at the low, mid and high points of the range.

For each point of the spousal support range, this calculator also provides the two components of child support generated by the federal Child Support Guidelines ? the basic monthly table amount of child support ("Table Amount") and the monthly contribution towards the other party's Special Expenses for the children, if any ("Special Expenses Contribution").

Scenario 1 - Spousal Support (Low End)

Graham

$0 Spousal Support (4.25 to 11 years) $293 Child Support (Table Amount) $95 Child Support (Special Expenses)

Susan

Graham

Scenario 2 - Spousal Support (Midpoint)

$140 Spousal Support (4.25 to 11 years) $293 Child Support (Table Amount) $66 Child Support (Special Expenses)

Susan

Graham

Scenario 3 - Spousal Support (High End)

$478 Spousal Support (4.25 to 11 years) $293 Child Support (Table Amount) $6 Child Support (Special Expenses)

Susan

In many cases, the support amounts in each scenario are totalled and/or set off against one another and a single payment is made. However, the support amounts should be identified separately in written documentation due to their different rationales and tax treatment.

See the following Explanation and/or endnotes in the printout for more detail. See also the "Limitations and Terms of Use" on the website for situations not covered by this calculator. Consult a family law professional if you have any further questions.



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EXPLANATION:

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Spousal Support 9

This calculator applies the federal Spousal Support Advisory Guidelines ("SSAG") in determining a range of spousal support amounts and durations based on the information provided. While not mandatory, most judges and lawyers follow the SSAG.

This calculator provides three possible monthly spousal support amounts at the low, mid and high points of the range. Where your situation falls in this range is a matter to be determined based on a number of factors set out in the SSAG.

The calculator also provides a range of the intended duration of spousal support from the date of separation. The amount and duration are interrelated parts of spousal support under SSAG that must be considered together (ie. a package deal).

The SSAG are very complex and do not apply in all situations. In fact, before using this calculator to determine spousal support, the recipient must first establish that he/she is legally entitled to receive spousal support ("entitlement"). There are also many limitations and reasons outlined in the SSAG as to why a situation may not fall within the range.

Be aware that monthly payments of spousal support are taxed as income to the recipient and deducted from the payor's income for tax purposes, if made pursuant to a written separation agreement or court order. This means that the spousal support recipient will be required to pay additional tax once his/her income tax return is filed, and should set money aside to cover this additional tax liability. See a family law accounting or tax professional for more information.

Based on your input:

If entitlement to spousal support is established, Graham pays Susan spousal support between $0 and $478 per month (midpoint of $140) 10 for a period to be determined between 4.25 to 11 years 11 from the date of separation (per SSAG - 'With Child Support' Formula). 12

Child Support

This calculator applies the federal Child Support Guidelines ("CSG") in determining child support in Canada.

Under the CSG, a party is required to pay child support for a dependent child living with the other party. Where the parties share physical custody of a child, both parties are required to pay child support for the child.

In most cases, child support is payable at least until a child reaches the age of majority. If a child is the age of majority or older, but still dependent because of illness, disability or postsecondary education pursuits, child support is likely still payable, but the amount may be different.

Monthly payments of child support are not taxed as income to the recipient and not able to be deducted from the payor's income.

There are two components of child support:

a basic Table Amount; and a contribution (ie. partial reimbursement) towards the other party's Special Expenses for the children.

TABLE AMOUNT



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The Table Amount is a basic monthly payment of child support paid to the party with whom the child lives, based on the payor's income, the number of children, and the applicable provincial tables in the CSG.

Where the parties share physical custody of a child, both parties pay a Table Amount based on their respective incomes, resulting in one set off payment, which may then be subject to further adjustment.

Based on your input: Graham pays Susan a basic Table Amount of child support of $293 per month 13 (per CSG Table Amount).

S P E C I A L E X P E N S E S C O N T R I B U T I O N 14

The children's Special Expenses are required to be shared by the parties based on their incomes. Special Expenses under the CSG include expenses for the children's child care, medical/health, extraordinary primary and secondary school education, post-secondary education, and/or extraordinary extracurricular activities.

The Special Expenses paid by each party require a contribution (ie. a partial reimbursement) from the other party ("Special Expenses Contribution") so that the expenses are ultimately shared. If both parties are paying Special Expenses, then both parties must contribute to the other's expenses. These two contributions will then be set off against one another, resulting in a single Special Expenses Contribution payment.

Because there are often tax deductions/credits associated with Special Expenses, the party initially paying the expenses may benefit from reduced income taxes and/or increased government subsidies and benefits, resulting in a reduced net cost of the expenses. It is this net cost of the Special Expenses (ie. after any tax breaks) that must be shared, not the initial (ie. gross) amount paid out by the party.

Once the net cost of the Special Expenses is determined, it is then divided between the parties according to the parties' respective incomes. This is referred to as "proportionate sharing".

If spousal support is being paid/received, it must be factored into this proportionate sharing. Therefore, as spousal support changes, so does each party's income and proportionate share of the Special Expenses. Hence different Special Expenses payments are provided in each Spousal Support scenario above.

Based on your input:

If Graham pays Susan spousal support at the low end of the SSAG Range ($0.00/month), Graham pays Susan $95.00 per month towards the Special Expenses. If Graham pays Susan spousal support at the mid point of the SSAG Range ($140.00/month), Graham pays Susan $66.00 per month towards the Special Expenses. If Graham pays Susan spousal support at the high end of the SSAG Range ($478.00/month), Graham pays Susan $6.00 per month towards the Special Expenses.

Endnotes:

1. The length of the marriage should include any period that the parties lived together prior to the marriage.

This calculation applies federal legislation governing married couples. Provincial legislation governs unmarried or common law couples. While the legislation of each province differs slightly, once a support obligation is found owing, the child and spousal support figures generated by this calculator will be the same for married or unmarried/common law couples.



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2. Child support is payable for dependent children of the marriage/relationship, which includes children for whom a party stands in the place of a parent (eg. stepchildren). A child is generally considered dependent and therefore entitled to child support if:

the child is under the age of majority; or

at or over the age of majority but in school full time or ill/disabled, so still dependent.

If the calculation is for a stepchild or a child over the age of majority, the basic Table Amount of child support may not be appropriate. Consult a family law professional for further information.

3. An arrangement where each parent has custody of one or more children is known as "split custody". Each parent must pay child support to the other based on his/her income, for the child in the other parent's custody. These payments are then "set off" against each other, resulting in one net payment.

In calculating child and/or spousal support, the calculator assumes that the parent with whom a child lives primarily will claim the eligible dependant credit and will receive the benefits related to that child (ie. Canada Child Benefit, GST/HST credits and any other applicable provincial benefits).

4. Employment income (i.e. T4 income) is the party's most current annual gross income earned from employment before deductions such as taxes, CPP, EI, payroll deductions or any other amounts are deducted. Gross employment income can be found in Box 14 of a T4 slip from an employer or Line 101 from a T1 General income tax return (as long as this amount continues to be accurate for the upcoming year).

This calculator automatically determines the most significant generally applicable federal and provincial taxes payable, payroll deductions (CPP, EI), benefits and credits, in doing the necessary calculations of child and spousal support. (Note that some minor taxes/benefits/credits will not be considered.)

Canada Child Benefit payments, GST/HST credits, as well as similar benefits from related provincial or territorial programs, will also be determined automatically by this calculator.

The basic calculator is limited to employment income only in the calculation of child and spousal support. If a party is self-employed, receives workers' compensation benefits, or earns any other taxable or non-taxable income, the premium calculator - MSC Advantage - should be used to determine support.

5. Child care expenses are Special Expenses under the Child Support Guidelines. As such, the net cost of all child care expenses paid by the party to the provider (whether tax deductible or not) are to be proportionately shared between the parties based on their respective incomes.

"Paid to provider" discloses the total gross annual expenses paid by the party.

"Claimed on tax return" discloses the amount of the annual tax deduction claimed by the party with respect to the child care expenses (Line 214 of a T1 General income tax return). For 2019, the maximum amount of the tax deduction that can be claimed is the lower of the amount actually incurred or:

$8,000/child for children under 7 years of age;

$5,000/child for children 7 to 15 years of age, inclusive;

$11,000/child for disabled children of any age.

The calculator will then apply the tax deduction to determine the net cost of the child care expenses.

For child(ren) in a shared parenting arrangement (ie. shared physical custody), both parties may be able to claim the maximum allowable tax deduction for the same child(ren), provided that the child care expenses claimed by each party truly relate to the child(ren) while in the care of that party for the purposes of allowing that party to earn an income, pursue education etc. Be aware that the Canada Revenue Agency may scrutinize the arrangement to ensure the child care expenses are legitimate and qualify for the tax deduction.

6. Self-employment income (net) is the party's most current annual net income earned from selfemployment. Net income means the gross income minus all expenses allowed under the Income Tax Act. The appropriate amount to include here can be found on Lines 135, 136, 137, 138, 139, 140, 141, 142, and 143 from a T1 General income tax return.

If there are personal expenses deducted from the self-employed gross income to arrive at the net income, then these personal expenses should be "added back" into the party's income by including them under the income category "Non-taxable income". Personal expenses frequently deducted from gross income include: cell phone expenses; long distance phone expenses; vehicle expenses; club memberships; gifts; meals; travel; home expenses, entertainment expenses.

It is important to identify self-employed income because of its unique tax treatment: self-employed parties do not generally pay Employment Insurance premiums, but make double CPP contributions, half of which is deductible and the other half of which is a non-refundable tax credit. The calculator will take this unique tax treatment into account in its determination of the appropriate child and spousal support amounts.

Canada Child Benefit payments, GST/HST credits, as well as similar benefits from related provincial or territorial programs, will also be determined automatically by this calculator.



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7. Medical or health-related expenses for the child(ren) that exceed insurance reimbursement by $100 annually, as well as the child(ren)'s portion of all annual medical/dental insurance premiums, are Special Expenses under the Child Support Guidelines. As such, the net cost of all medical expenses paid by the party for the child(ren) are to be proportionately shared between the parties based on their respective incomes.

"Paid to provider" discloses the total annual gross medical expenses paid by the party for the child(ren), including the child(ren)'s portion of all medical/dental insurance premiums, such as: orthodontic treatment; professional counselling provided by a psychologist, social worker, psychiatrist or any other person; physiotherapy; occupational therapy; speech therapy; prescription drugs; hearing aids; glasses; and contact lenses.

"Claimed on tax return" discloses the total annual gross medical expenses claimed by the party for the family (including the children). The calculator will then determine whether the party is eligible for a medical tax credit based on the party's income, and will apply any credit to determine the net cost of the medical or health-related expenses for the child(ren).

8. Extraordinary expenses for the child(ren)'s fitness related extracurricular activities are Special Expenses under the Child Support Guidelines. As such, the net cost of these expenses paid by the party for the child(ren) are to be proportionately shared between the parties based on their respective incomes.

Note that only "extraordinary" expenses (ie. expenses that cannot be reasonably covered by the party from his/her income and the basic Table Amount of child support received) are to be shared.

"Paid to provider" discloses the total annual gross extraordinary fitness related extracurricular activities' expenses paid by the party for the child(ren).

"Claimed on tax return" is no longer applicable for extracurricular expenses.

9. Spousal support (sometimes referred to as "alimony") is determined by looking at the factors set out in the governing legislation, the results of previously decided cases and the particular facts of the situation. Unlike child support, there is no mandatory law or table setting out the precise amount of spousal support to be paid; the law does not say exactly how much spousal support should be paid in a given case, or for how long.

There are, however, federal guidelines that assist in determining a range of appropriate spousal support amounts and durations in a given situation, known as the Spousal Support Advisory Guidelines ("SSAG"). Despite the SSAG's optional advisory nature (ie. not mandatory/legislated), most judges and lawyers use the SSAG to help determine what spousal support award would be fair. This calculation determines spousal support based on the SSAG.

The SSAG, however, do not apply in all situations. Be aware that even if the calculator generates a range of spousal support, this does not automatically mean that spousal support is payable in the circumstances. There are many limitations and exceptions to the SSAG, and many complex legal issues to be considered, including but not limited to:

entitlement to spousal support in the first place, before application of SSAG;

application of SSAG to unmarried or common law couples;

exceptions to SSAG, including among other things prior support obligations, illness and disability, special needs, non-taxable income etc.;

location within the SSAG ranges based on the particular circumstances;

payor income ceilings ($350,000) and floors ($20,000, or between $20,000-$30,000) over/below which the SSAG may not be appropriate or may be applied with modification;

variations and reviews of spousal support;

effect of remarriages and second families on spousal support under SSAG; and

restructuring spousal support as a lump sum one time award, or as an ongoing payment with a duration and amount outside the SSAG ranges but still within the SSAG's parameters.

Refer to the SSAG for further detail about the limitations of SSAG. Also see the articles in the Learn section of the website, under "Spousal Support", "Spousal Support Advisory Guidelines (SSAG)", for more information regarding ceilings, floors, restructuring and exceptions to the SSAG.

It is advisable to consult with a family law professional to fully understand the SSAG and its application to the particular circumstances of your case.

10. Where your situation falls in this range depends on a number of factors set out in the SSAG. Note that the midpoint of the SSAG amount range is simply provided as a reference point. Refer to the SSAG for further detail about the range. Also see the article "What Factors Help Determine Placement in the SSAG Range?" in the Learn section of the website for a list of the relevant factors to consider.

For more information on the SSAG amount range and the appropriate support amount to be paid based on the specific facts of your situation, consult a family law professional.



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11. The duration generated by the SSAG is meant to provide an ultimate range for spousal support, but may not be imposed initially at the time a support amount is set. In other words, not all initial support amounts will be for a specified duration. Instead the duration may be left unspecified initially, with the ranges provided by the SSAG intended to be used to indirectly structure the process of review and variation under the law, and to reinforce expectations of the eventual termination of the order.

For more information on the duration range under the SSAG, and its application to the specific facts of your situation, consult a family law professional.

12. The SSAG "With Child Support" Formula is applicable where the basic Table Amount of child support is being paid for dependent children living primarily with the spousal support recipient, or where the children are living in shared (physical) custody, or where each parent has custody of a dependent child (split custody).

If there are Special Expenses for the children being paid by a party (ie. child care, medical expenses, extraordinary primary or secondary school education expenses, post-secondary expenses, or extraordinary extracurricular activities' expenses), they must be included in the calculation in order to determine the appropriate amount of spousal support under the SSAG. Special Expenses can only be input in the premium calculator - MSC Advantage.

In determining duration under this formula, the calculator assumes that a child will be in full-time school at age 6 and will be finished high school at age 18.

The calculator applies the SSAG Formula that appears most applicable based on the information input; a family law professional should be consulted to verify the SSAG Formula to be used in the circumstances.

13. In cases of split custody (ie. where each parent has one or more children living with him/her), each parent must pay child support based on his/her income to the other parent for the child(ren) living with the other parent. These payments are then "set off" against each other, resulting in one net payment.

14. IMPORTANT: If there are Special Expenses being paid by one or both parties, they will have a significant impact on both child and spousal support payments, and you must use the premium calculator, MSC Advantage, to determine the appropriate support in the circumstances. If you have not yet paid for the Special Expenses, you need to anticipate the expenses to the best of your ability and input the amount you expect to pay.

The following Special Expenses for the children are to be shared proportionately:

child care;

medical and dental insurance premiums (child's portion only);

medical/health-related expenses, such as orthodontic treatment, professional counselling, physiotherapy, occupational therapy, speech therapy, prescription drugs, hearing aids, glasses and contact lenses (that are at least $100 over reimbursement by insurance plans);

extraordinary education expenses for primary and secondary school;

post-secondary education expenses; and

extraordinary expenses for extracurricular activities.

Note that only "extraordinary" expenses for education and/or extracurricular activities are to be shared. In other words, the cost of some education and/or extracurricular activities can reasonably be covered by the party based on his/her income and any basic Table Amount of child support received. It is only education and/or extracurricular activities' expenses that cannot be reasonably covered by the party that are to be shared.

Special Expenses are shared "proportionately" between the parties. This means that each pays a percentage amount of the special expense based on his or her income in relation to the combined incomes of both parties. (Note that the amount of the Special Expenses must be known (or at the very least estimated) in order to determine the appropriate percentage each party must pay.)

For example: if the payor earns $80,000/year, and the recipient earns $20,000/year, the payor is responsible for 80% of the net cost of the Special Expenses and the recipient is responsible for 20% of the net cost of the Special Expenses.

Any monthly spousal support paid/received by the parties must be deducted from or included in each one's income (as appropriate). This will affect each party's proportionate share of Special Expenses.

For example: if the payor is paying the recipient spousal support of $875 per month (i.e. $10,500 per year), the payor's income will be reduced to $69,500/year and the recipient's income will be increased to $30,500/year, meaning that the payor will now be responsible for 67% of the net cost of the Special Expenses and the recipient for 33% of the net cost of the Special Expenses.

Be aware that most Special Expenses have associated tax deductions or tax credits, which can significantly impact the calculation by reducing the income tax paid by the party, and in some cases, increasing the party's government subsidies and benefits (eg. Canada Child Benefit and other provincial child-related benefits). It is the net cost of the Special Expenses to the party (ie. the cost after the paying party deducts any tax savings and receives any additional government benefits) that is to be shared, which can be significantly less than the amount initially paid out by the party.



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