Income Determination for Spousal Support

Introduction

Income determination is a pivotal process in family law, particularly in the calculation of spousal support. It is an often intricate procedure that, while borrowing significantly from the child support guidelines, features its unique complexities. This article aims to shed light on three central aspects of income determination for spousal support: the role of the recipient spouse's income, the concept of asset equalization, and specific income determination issues unique to spousal support.

The Role of Recipient Spouse's Income

In spousal support cases, the income of the recipient spouse assumes a significant role, contrasting starkly with child support cases. This income becomes particularly crucial when the recipient spouse has not made considerable efforts towards self-sufficiency. In such instances, income is generally imputed to the recipient, with the intention of reducing the support payable and stimulating them to seek employment. This strategy is rooted in an attempt to maintain a sense of balance and ensure fairness in the allocation of support, thereby preventing any undue advantage or disadvantage to either party involved.

The Concept of Asset Equalization

Asset equalization introduces an additional layer of complexity in the determination of spousal support. When a spouse has equalized their assets, they are, in most instances, not obligated to pay support based on these assets. This is particularly applicable in the case of pensions. A crucial principle in this context is the rule against double-dipping. This rule discourages the payment of support from assets that have already been equalized. However, the rule is not absolute and allows for exceptions, particularly when there is a demonstrated need. Such exceptions aim to prevent any undue hardship to the recipient spouse, ensuring that the principle of fairness remains upheld.

Unique Income Determination Issues in Spousal Support

The process of income determination for spousal support is not always straightforward and encompasses several unique issues. For instance, social assistance, despite being a form of income, is not regarded as such for the purpose of spousal support. On the other hand, child tax benefits and support received for other children (from previous marriages, for example) are included in determining the income.

Additionally, if a spouse receives non-taxable income, he/she will not benefit from the tax deductibility of spousal support, which can significantly affect the net figures.

Moreover, while child support generally accepts the payor's income as it stands, spousal support does not always entitle a recipient spouse to share in post-separation increases in income. This is particularly true when these increases are not materially connected to events or training undertaken during the marriage.

Incomes exceeding $350,000 fall outside the Spousal Support Advisory Guidelines. This implies that the figures for support could be capped, based on the argument that no one requires that level of support.

Conclusion

Determining income for spousal support is a nuanced process that demands meticulous analysis and careful consideration. Despite sharing several similarities with child support, it also has distinct features such as the role of the recipient spouse's income and the concept of asset equalization. Gaining an understanding of these complexities can significantly aid in achieving a fair and accurate calculation of spousal support. It fosters justice and equity in the process, ensuring that neither party is unfairly disadvantaged or unduly benefited.

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