Family Law Principles that we can learn from Thompson v. Thompson 2013 ONSC 5500 (Spousal Support Advisory Guidelines)

The SSAG were developed around two basic formulas, namely the Without Child Support formula, which applies when the recipient spouse is not receiving any child support, and the With Child Support formula, which comes into play when there are dependent children of the relationship who are eligible for child support.

The Without Child Support formula. is built around the gross income difference between the spouses and the length of the marriage. The gross income difference calculation is intended to measure the parties’ differential loss of the marital standard of living at the end of the relationship, and the formulas for quantum and duration encapsulate the notion that the longer the marriage, the more the recipient spouse should be protected against that differential loss.

The second formula, known as the With Child Support formula, considers a broader range of factors, making it more complex. These factors include the child support obligations of each party, differential tax treatment, and the net incomes of both spouses. The purpose of this formula is to ensure that the financial needs of the children involved are adequately met. This formula recognizes that the obligation to provide for the children should be shared equitably between the spouses, considering their respective incomes and the child support payments one party is already making.

The With Child Support formula encompasses several sub-formulas, each designed to deal with different custodial arrangements. These include split custody, shared custody, custodial payor, adult child, and mixed custody. Each sub-formula is tailored to address the unique financial and logistical challenges associated with different custodial situations.

For instance, in a split custody situation, where each parent has custody of one or more children, the formula takes into account the need to balance the financial resources between two separate households. In contrast, in a shared custody situation, where the child spends at least 40% of the time with each parent, the formula takes into account the duplicated costs of maintaining suitable homes for the child in both households.

The choice of the appropriate formula and sub-formula depends heavily on the specific circumstances of each case. Factors such as the presence of dependent children, the child support obligations of each party, and the custodial arrangements play significant roles in determining which formula is most appropriate. The SSAG is not a rigid law, but rather a set of guidelines that provide a structured yet adaptable framework for determining spousal support. They are designed to provide consistency and predictability, while also allowing for the flexibility necessary to account for the unique circumstances of each case.

In conclusion, the Spousal Support Advisory Guidelines play a vital role in ensuring that the financial implications of divorce or separation are handled in a fair and equitable manner. By considering a range of factors and providing adaptable formulas, they aim to balance the financial needs and obligations of both parties, while prioritizing the well-being of any children involved.

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