Expert Guide to Spousal Support Calculator Formulas

Navigating the laws and guidelines related to spousal support in Canada can be challenging. The Divorce Act introduces the concept of Spousal Support, but it’s the Spousal Support Advisory Guidelines (SSAG) that help us determine the amount and duration of the support. The current SSAG was developed by two law professors with the primary goal of standardizing the calculation of spousal support amounts and duration.

The Federal Department of Justice in Canada adopted these guidelines in 2008. However, it’s important to note that the SSAG is not law! You can access the full text of the SSAG here. But remember, while these guidelines are significant, they aren’t applied in every case. The judge ultimately has the final say in matters of spousal support. Nevertheless, let’s explore how the SSAG approaches spousal support to better understand the process.

Under the SSAG, there are two main ways that spousal support can be calculated:

• Formula 1: With Child Support
• Formula 2: Without Child Support

Next, let’s take a general look at how each formula is calculated. Remember, these are rough estimates intended for educational purposes only. They are not exact calculations.

Is spousal support being considered alongside child support? If so, the following factors will come into consideration:

• Each spouse’s gross income
• The amount of the child support obligation
• The age of the children
• Taxes and related deductions
• The length of the marriage or cohabitation
• Any applicable government benefits or credits
• The needs of the recipient spouse
• The ability of the paying spouse to assume this financial burden

The first step is to consider how much spousal support is required and how long the paying spouse should pay it.

Step 1: How Much Support is Required?

To figure out how much spousal support is required, begin by calculating your gross income. This is the amount of money you make after taxes and other deductions. Then, subtract your monthly child support payment from that number. Also, subtract any taxes and other applicable deductions. Next, add back in any government tax credits or other benefits that apply to your case. The resulting number is known as your Individual Net Disposable Income or INDI. The other spouse will perform the same calculation, only instead of subtracting child support, he or she will add that figure to the INDI calculation. Let’s review a real-life example to simplify.

• Spouse 1’s Monthly Gross Income: $120,000/12 = $10,000 per month
• Cost of child support for two children: $1,777
• Income tax paid (around 30%): $10,000 x 30% = $3,000
• Applicable government benefits: None

Spouse 1 INDI Calculation: $10,000 – $1,777 – $3,000 = $5,223

• Spouse 2’s Monthly Gross Income: $70,000/ 12 = $5,833.33 per month
• Child support received for two children: $1,777
• Taxes paid (around 20%): $5,833.33 x 20% = $1,166.66
• Benefits receieved: $550

Spouse 2 INDI Calculation: $5,833.33 + $1,777 +550 = $8,160.33 – $1,166.66-= $6,993.67

Now that you have both INDI calculations, add them together. In this case, the sum is $12,216.67. When considering child support, the number of children makes a difference. In this case, the SSAG mandates that two children put the spouse in the 54% to 60% support range. This makes the calculation 54% to 60% of $12,21.667, which equals: $12,216.67 x 54% = $6,597.00 $12,216.67 x 60% = $7,330.00 Yet, these aren’t the final numbers.

Now, you’ll subtract Spouse 2’s INDI from those numbers. With these numbers and a 60% support rate, Spouse 2 could receive a monthly support payment of up to $336.33.

Step 2: How Long Must the Spouse Pay?

Next, determine the length of time the paying spouse will provide support. In most cases, the length of your marriage will be the deciding factor. Then, you’ll establish a range of years of support, which can span from half of the relationship (lowest end) to the entire duration of the relationship.

If two spouses are married for 20 years, this can range from 10 to 20. How does a judge know where in this range your payment timeline should fall? He or she will take several considerations into account, including:

• The income-earning capacity of the recipient spouse
• The characteristics of the children (age, quantity and any special needs)
• The paying spouse’s ability to pay
• The paying spouse’s work incentives
• Any shared debts
• Divison of any property
• Any prior support obligations
• Any illnesses or disabilities
• Applicable self-sufficiency incentives

The judge will review your stance on all of these factors to set a timeline for your spousal support payments. For instance, if you don’t have any children with special needs, you (the paying spouse) and are financially able to provide the money, it’s likely that you’ll pay on the lower end of the timeline, around 10 years.

In the event that you and your spouse divorce without any shared children, you’ll calculate spousal support costs in a slightly different way. Let’s review the formula using the scenario above. First, add both monthly gross incomes together. This equals $15,833.33. Now, figure out the difference between those two incomes: 10,000 – $6,993.67 = $3,006.33.

Finally, consider your years of cohabitation. Say these two spouses lived together for five years and were married and living together for 10 years before filing for a divorce. Thus, the total equals 15 years. With that number, you’re ready to calculate your ranges. The range for this formula is a lot lower, at 1.5% to 2%. Start by converting these percentages into decimals, so 1.5% becomes 0.015 and 2% becomes 0.02. Then, multiply the income difference by these percentages.

• $3,006.33 x 0.015 = $45.10
• $3,006.33 x 0.02 = $60.13

From here, multiply these numbers by your years of cohabitation. This equals:

• $45.10 x 15 = $676.50
• $60.13 x 15 =$901.95

From this rudimentary illustration, your monthly support payment account could run from $676.50 to $901.95.

• Spousal Support Advisory Guidelines (SSAG): Provides a framework for calculating support, considering income, marriage length, and child support.
• Federal Divorce Act: Establishes standards for spousal support across Canada.
• Income Disparity: Significant income differences between spouses often determine support necessity.
• Factors for Denial: Spousal support can be denied if the recipient remarries or is financially independent.
• Indexing Support: Adjusts payments based on living cost changes, ensuring support keeps pace with inflation.
• With Child Support Formula: Considers gross income, child support obligations, taxes, and benefits.
• Without Child Support Formula: Based on combined gross incomes and marriage length.
• INDI Calculation: Individual Net Disposable Income helps determine support amounts.
• Duration of Support: Typically ranges from half to the full length of the marriage, considering various factors.
• No-Fault Divorce: Infidelity doesn’t affect spousal support rulings.
• Legal Binding Agreements: Spousal support agreements are legally binding and must be adhered to