Obtaining Reliable and Repeatable SSAG Calculations

5. THE WITH CHILD SUPPORT FORMULAS

The with child support formulas apply when one or both parties have children qualifying as “children of the marriage” within the meaning of the Divorce Act,[40] whether or not child support is being paid or is being paid in the amount prescribed by the Child Support Guidelines.

The basic with child support formula is designed to leave the recipient with 40 percent to 46 percent of the parties’ combined individual net disposable incomes, payable for a period of time based on the length of cohabitation or the school status of the last or youngest child. Two variants of the basic formula apply in situations or where the parties have split custody or shared custody, and a slight modification of the basic with child support formula applies where the payor is a step-parent to the children.

Two other versions of the with child support formula apply where the payor has the children’s primary residence or all children are dependent adults receiving child support in an amount determined under s. 3(2)(b) of the Child Support Guidelines. Unlike the shared custody and split custody variants of the basic with child support formula, these hybrid formulas rely on a length-of-relationship test to determine quantum rather than on dividing the parties’ individual net disposable incomes.

5.1 The Basic Formula

The basic with child support formula will be used in most circumstances where the parties have children. It is designed to calculate the amount of spousal support payable where the payor pays both spousal support and child support to the recipient. SSAG §8.3

5.1.1 Required Information

The information required to perform this calculation is:

  • Payor’s Gross Income, determined in accordance with the Child Support Guidelines
  • Amount of Payor’s Child Support Payments, where the amount paid differs from the Guidelines table amount
  • Recipient’s Gross Income, determined in accordance with the Child Support Guidelines
  • Available Credits, Benefits and Deductions
  • Amount of Parties’ Contributions to Special Expenses
  • Age of Recipient
  • Length of Cohabitation, calculated from date of marriage to date of separation, plus any period of cohabitation before marriage
  • Age and Place of Residence of all Children
  • Time until Youngest Child Enters School or Time until Last or Youngest Child Leaves School, calculated bearing in mind any known delays or advances in these dates

5.1.2 Formula Structure

In this formula, the calculation for quantum is designed to leave the recipient with 40 to 46 percent of the parties’ combined individual net disposable incomes, net of all taxes, deductions, benefits and credits, including those relating to the payment and receipt of spousal support. SSAG §8.3.2

Duration is initially indefinite, duration not specified however the formula generates a range for duration which can be used to shape the issue through subsequent processes of review and variation. The range for duration is determined by selecting the longest results from two tests for the low end and two tests for the high end; the longest result from each becomes the low end of the range and the high end of the range for the duration of spousal support. SSAG §§8.5, 8.5.4

Quantum

Payments range from the amount that would leave the recipient with 40 percent (low end of the range) to 46 percent (high end of the range) of the parties’ combined individual net disposable incomes. SSAG §8.3.2

NOTE: The proper accounting of the parties’ contributions to any special expenses is critical to the calculation of quantum under the Advisory Guidelines and is often overlooked.

Duration

The range for duration is the range between the longest of the results produced by the low range tests and the longest of the results produced by the high range tests. SSAG §8.5.4

The low end of the range tests are:

  1. 0.5 years per year of cohabitation
  2. the length of time until the youngest child enters full-time school

    NOTE: Where the youngest child is in school at the date of separation, the applicable test will be 0.5 years per year of cohabitation.

The high end of the range tests are:

  1. 1.0 years per year of cohabitation
  2. the length of time until the last or youngest child finishes school

The maximum duration spousal support will be payable for is indefinite, duration not specified when:

  1. the length of cohabitation is greater than five years and the length of cohabitation plus the age of the recipient is greater than or equal to 65; or,
  2. the length of cohabitation is twenty or more years.

NOTE: Duration is to include any period in which support or its equivalent was paid on an interim basis pending a final determination of the issue. In other words, the number of months during which interim support or its equivalent was paid should be deducted from the results produced by the formula for duration. SSAG §5.3

5.2 The Shared Custody Formula

The shared custody with child support formula should be used where the parties have shared custody within the meaning of s. 9 of the Child Support Guidelines. This formula should be used whenever the parties have shared custody, whether the payor is paying child support calculated using the customary set-off or another method. CSG s. 9; SSAG §8.6

This formula is identical to the basic with child support formula, save that the full table amount of child support is deducted from the incomes of both parties in determining their individual net disposable incomes.[41]

5.2.1 Required Information

The information required to perform this calculation is:

  • Payor’s Gross Income, determined in accordance with the Child Support Guidelines
  • Amount of Payor’s Child Support Payments, where the amount paid is different than the unadjusted Guidelines table amount
  • Recipient’s Gross Income, determined in accordance with the Child Support Guidelines
  • Available Credits, Benefits and Deductions, and whether these benefits are being rotated between the parties
  • Amount of Parties’ Contributions to Special Expenses
  • Age of Recipient
  • Length of Cohabitation, calculated from date of marriage to date of separation, plus any period of cohabitation before marriage
  • Age of all Children
  • Time until Youngest Child Enters School or Time until Last or Youngest Child Leaves School, calculated bearing in mind any known delays or advances in these dates

5.2.2 Formula Structure

In this formula, the calculation for quantum is designed to leave the recipient with 40 to 46 percent of the parties’ combined individual net disposable incomes, net of all taxes, deductions, benefits and credits, including those relating to the payment and receipt of spousal support, and the full table amount of child support. SSAG §8.6

Duration is initially indefinite, duration not specified, however the formula generates a range for duration which can be used to shape the issue through subsequent processes of review and variation. The range for duration is determined by selecting the longest results from two tests for the low end of the range and two tests for the high end of the range; the longest result from each becomes the low end of the range and the high end of the range for the duration of spousal support. SSAG §8.6

Quantum

Payments range from the amount that would leave the recipient with 40 percent (low range) to 46 percent (high range) of the parties’ combined individual net disposable incomes. The full table amount of child support must be deducted from each party’s income in calculating individual net disposable income, and the formula has been adjusted to include within the range an award of spousal support that would equalize the parties’ net disposable incomes after the payment of child and spousal support SSAG §§8.6, 8.6.3

NOTE: The Advisory Guidelines software must be adjusted where the parties or the CRA have decided to rotate the CCTB, UCCB and the child-related portion of the GST/HST Credit between the parties. SSAG §8.6.1

NOTE: The payment of child support in an amount higher than the set-off approach is a factor which should be considered in determining the appropriate amount of spousal support payable within the ranges. SSAG §8.6.2

Duration

The range for duration is the range between the longest of the results produced by the low end of the range tests and the longest of the results produced by the high end of the range tests. SSAG §§8.5.4, 8.6

The low end of the range tests are:

  1. 0.5 years per year of cohabitation
  2. the length of time until the youngest child enters full-time school

    NOTE: Where the youngest child is in school at the date of separation, the applicable test will be 0.5 years per year of cohabitation.

The high end of the range tests are:

  1. 1.0 years per year of cohabitation
  2. the length of time until the last or youngest child finishes school

The maximum duration spousal support will be payable for is indefinite, duration not specified when:

  1. the length of cohabitation is greater than five years and the length of cohabitation plus the age of the recipient is greater than or equal to 65; or,
  2. the length of cohabitation is twenty or more years.

NOTE: Duration is to include any period in which support or its equivalent was paid on an interim basis pending a final determination of the issue. In other words, the number of months during which interim support or its equivalent was paid should be deducted from the results produced by the formula for duration. SSAG §5.3