Navigating the complexities of spousal support calculations can be daunting, but the right tools simplify the process. Enter DivorceMate—the premier solution for accurate support calculations in Ontario. Legal professionals and individuals can use the DivorceMate Calculator to ensure precise and fair support determinations. The DivorceMate Software is a game-changer designed to enhance productivity across Canada, from Ontario to British Columbia. This essential tool is widely adopted by top law firms and is known for its ability to handle everything from extraordinary expenses to detailed financial forms.

Understanding DivorceMate, DivorceMate Calculator, and DivorceMate Software is crucial for anyone involved in family law. These tools streamline practice management and reduce the risk of common mistakes. For those keen on staying ahead, DivorceMate University offers comprehensive and supportive in-depth training on leveraging these tools effectively, ensuring you’re fully prepared to use them to their full potential.

This blog post delves into expert advice for using the DivorceMate Calculator aka SSAG calculator to achieve accurate spousal support calculations. Whether you’re a law professional or seeking clarity on spousal support, our comprehensive guide will provide valuable insights. Keep reading to discover why DivorceMate is the go-to solution for spousal support calculations in Ontario.

After more than 16 years, errors in using the Spousal Support Advisory Guidelines (SSAG) continue, from minor to major, and often with disturbing frequency. In the 2016 edition of the Spousal Support Advisory Guidelines User’s Guide, these common errors are highlighted at the beginning under the section titled “What Not to Do.” Many of these errors are explored in greater detail throughout the User’s Guide. It’s important to note that these issues are not problems with DivorceMate but rather user-related mistakes.

Here, we identify and list them, framed in positive, encouraging terms wherever possible.

Know Your Inputs and Assumptions

Be transparent! Too often, family lawyers have calculations done by others: law clerks, assistants, articled clerks, or junior lawyers. Lawyers need to know the input data and the assumptions used to generate the SSAG ranges and other numbers, whether in negotiations, mediations, judicial settlement conferences, hearings, or trials. Please consider this part of the family law lawyer’s duty to colleagues and courts to know the law and be forthright about it.

Entitlement: Just don’t run the numbers

We can only say this sometimes: the SSAG only deals with amount and duration after a finding or agreement on entitlement to spousal support. It is wrong to “just run the numbers.”

Use the Correct Income Inputs

During negotiation or hearing, the incomes to be used may be concluded differently than the assumptions that underpinned the original SSAG calculations. Be sure that the SSAG calculations are based on the correct incomes.

Social Assistance Should NOT Be Treated as Income

This error appears in decided cases, especially when determining the recipient’s income. It is complicated by provinces like Ontario calling social assistance “ODSP” (Ontario Disability Support Program) or “Ontario Works” or Alberta calling it “AISH” (Assured Income for the Severely Handicapped). Including social assistance in the recipient’s income will result in the underpayment of spousal support.

Non-Taxable Income Issues

Non-taxable incomes must be grossed up under the formula without child support or the custodial payor formula. There is also an exception for spousal support paid by a payor whose income is mostly or all non-taxable.

Use the Right Formula

The dividing line between the two main formulas is clear: either with child support or without child support. The child support formula is a collection of formulas, depending upon the custodial and child support arrangements. Often needed is the custodial payor formula or adult child formula.

Length of Cohabitation vs. Length of Marriage

Under the without child support formula and the formulas built around it—the custodial payor and adult child formulas —the length of cohabitation must be used to determine the amount or duration, not the length of marriage alone.

Section 7 Expenses

Section 7 expenses must be considered under the child support formula. This continues to be the single most common and significant mistake under the SSAG. Failure to consider Section 7 contributions will inevitably lead to the payor paying too much spousal support, possibly way too much if the Section 7 expenses are substantial.

Adjusting the Custodial Payor Formula

The custodial payor formula must be adjusted if the spousal support recipient does not pay child support to the custodial payor. The higher-income payor of spousal support often will not claim child support from the lower-income recipient. You need to know whether the lower-income recipient of spousal support is or is not paying child support. If they are not, but no adjustment is made, the payor will pay too much spousal support.

Being Positional does not help anyone

Don’t just state the ranges; suggest a location on amount and duration. The SSAG ranges are broad. It is the task of the lawyer (or a party) to justify a location for amount or duration. A straight positional approach is also an error, e.g., the claimant’s spouse argues for the high end of the amount for the most extended duration possible without explanation. In contrast, the payor spouse seeks the low end of the range.

Explain indefinite (duration not specified)

Too often, the focus is only on the amount of support. Sometimes, the SSAG will suggest “indefinite (duration not specified).” However, duration will be an issue in many cases, either initially or on variation and review.

Lump Sum Spousal Support Must Be Discounted for Tax

A lump sum, whether as part of a final settlement or for retroactive spousal support, will not be tax deductible for the payor or tax payable for the recipient, and thus, any lump sum amount determined using the SSAG ranges for periodic amounts must be discounted or reduced to reflect that tax fact.

Remember the Exceptions

The SSAG formulas were developed to deal with typical cases. However, there will be cases where the formula outcomes don’t seem right. We have identified 11 such exceptions in Chapter 12 of the SSAG. However, these exceptions do not exhaust the circumstances in which departure from the formula ranges might occur. Unusual facts justify going beyond the listed exceptions.

• Purpose of DivorceMate: Provides accurate support calculation reports for spousal and child support, aiding in financial analysis during separation.
• SSAG and CSG: Spousal Support Advisory Guidelines (SSAG) and Child Support Guidelines (CSG) help standardize support calculations.
• Complexity: Using DivorceMate requires understanding of the guidelines to avoid errors.
• Manual Adjustments: Certain situations, like the “Custodial Payor” formula, require manual adjustments in the software.
• Tax Considerations: Include all subsidies, benefits, and tax deductions related to expenses.
• Section 7 Expenses: Must be factored in to avoid overpaying spousal support.
• Automatic Calculations: DivorceMate automatically calculates Canada Child Benefits and GST/HST based on income.
• Professional Assistance: Engaging a professional familiar with DivorceMate and the guidelines is crucial for accurate results.
• Common Mistakes: Incorrect assumptions and omission of income items can lead to litigation and incorrect support projections.