You can calculate the appropriate amount of child support and spousal support with a child support and spousal support calculator available online. However, spousal support is much more complicated and nuanced than child support. It is best to meet with a lawyer before filing an application for spousal support or agreeing to pay spousal support.

The spousal support calculator will tell you how much spousal support is payable, but before determining how much spousal support is payable, you must determine whether spousal support is payable. Spousal support is not automatically required simply because the calculation recommends an amount. See Am I entitled to spousal support?

After entitlement to spousal support is established, the next step in calculating spousal support is determining what each spouse’s income is. Determining what someone’s income is may be as simple as referring to line 150 in each spouse’s income tax return or notice of assessment. However, there are several factors that may complicate the calculation, for example:

• Income may be imputed to someone who is intentionally underemployed or unemployed if that person is capable of earning more.
• Union dues may be deducted from someone’s Line 150 income.
• Self-employed individuals are entitled to deduct legitimate business expenses from their incomes, but some expenses deducted in an income tax return may be added back to the person’s income if he or she received a personal benefit from the expense.
• If either party owns a corporation, a Guideline Income Report may be required to accurately determine the amount of income available to that person, because owners of corporations often pay themselves less than they could in an effort to minimize their income taxes.
• Non-recurring income (such as a one-time bonus; capital gains from the sale of a property; or an RRSP withdrawal to pay legal fees) may be deducted from a party’s income.
• If a party’s income fluctuates, it may be appropriate to average that person’s income over the last three years.

After determining what both spouse’s incomes are, the next step is calculating the range of spousal support recommended by the Federal Spousal Support Advisory Guidelines. Unlike the Child Support Guidelines (which provides a set amount of child support required), the Spousal Support Advisory Guidelines provide a recommended range of spousal support.

The courts consider many factors when deciding whether to order spousal support at the low, mid, or high end of the range. Support may be ordered in an amount at the high end of the range but for a duration at the low end of the range, and vice versa. Many people mistakenly believe that the fairest way to calculate support is to default to the mid-point, but the courts have made it clear that this is not appropriate. Quantum (the amount) and duration of spousal support is determined on a case by case basis. It might be ordered for a set duration or for an indefinite duration, subject to review. Sometimes lump sum payments are preferable, but lump sum payments are rarely ordered unless both parties prefer a lump sum payment, as opposed to monthly payments.

Tax Considerations:

Monthly spousal support payments are tax deductible for the payor and must be included as taxable income on the recipient’s income tax returns. Lump-sum payments are not taxable for the recipient and can’t be deducted on the payor’s income tax returns. This is an important factor to consider before agreeing to pay or accept a one-time lump sum amount of spousal support.

Contact us for a free 30-minute consultation if you still have questions about how to calculate spousal support.