Recalculation of child support and spousal support

Child support recalculation

scale of justiceYou recalculate child support annually based on the parent's current income tax information so that payments stay in line with the laws and your agreement. Most provinces offer online tools to help you recalculate based on the Federal Child Support and Spousal Support guidelines, which have been fully adopted to calculate child support in Canada.

Once support calculations are updated, you can apply them to splitting extraordinary expenses pro rata.

Since the guidelines are straightforward, this begs the question of why there can be so much conflict around these payments. The answer is in the calculation of income. Income is made up of several components, including:

  • Base Income
  • Dividends
  • Bonuses
  • Stock options
  • Interest Income
  • Self-employed

The calculation is relatively easy for someone with a straightforward T4, but when there is more, it can be complex.

Our goal at Fairway is to help parents keep child support levels in line with their income so that families can avoid the time and expense of asking the courts to review their child support orders.

Spousal support recalculation

two people pointing on a piece of paperMost separation agreements will set out the terms regarding spousal support in detail. Depending on your specific terms will determine whether or not there is a need for a recalculation. There is typically no payment variability if your spousal support was either a lump sum or fixed payments over a fixed term. In some agreements, there will be some terms about significant changes in income to allow for the recalculation in the case of fixed-income payments, but that varies depending on what you negotiated. Typically, though, fixed means fixed and may mean there is zero flexibility in payments.

The more common type of spousal support is variable. Your agreement may set out the equation for determining spousal support payments in the future or have left it blank. Since the calculation and payments around spousal support are not black-and-white and are often an area of contention, it is best to seek assistance for recalculations. Depending on the length of the marriage and other factors, support can continue indefinitely or for some shorter length of time. Our team of financial divorce experts helps couples work through recalculations fairly, accurately and inexpensively. Typically, disagreements arise from a dispute on the calculation of income or the belief that one party should be working more than they are, making more income and contributing to the overall financial picture.

At Fairway, we can help you get this done with little stress or cost

We strive to keep it easy, stress-free and inexpensive. The differences of opinion and approaches can result in stress and conflict. So, in most cases, we use our proven INR™ (Independently Negotiated Resolution) process so that each party can make decisions independently without any emotional pressure. We always ensure you are an informed and empowered decision-maker, even during recalculations of support.

The average cost of a separation/divorce in Canada is now over $51,000

Client testimonials

Success comes in many forms. For us, it is hearing back from our clients and reading how we have changed their lives for the better. These stories are the reason we do what we do.

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I just want to say thank you to you and Tracy. I appreciate that your jobs are not always fun filled but you are both very professional and i am sincere in saying that i do appreciate the work that has been done on my behalf.

- Saskatoon Client January 2020

The Fairway Method

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Frequently asked questions

At Fairway, we understand that facing a divorce is daunting, bringing mixed emotions and many questions. We are committed to ensuring that you have the knowledge and tools to move through the process in a way that protects your assets and your children.

Fairway Divorce Solutions has an in-house legal team that drafts your separation agreement and, in certain provinces, can file for divorce. Also, our matrimonial lawyers educate divorcing couples during the What is the Law™ Seminar. You are also encouraged to get independent legal advice from lawyers.

It is seldom too late. Fairway Divorce Solutions has helped couples frustrated with the cost, time and emotional strain of using lawyers. The Fairway team encourages divorcing couples to research and understand divorce options and choose a process designed to meet the needs of both parties and the children. The court process can often be paused to allow parties to explore and use Alternative Dispute Resolutions (ADR) methods.

No, you do not need a lawyer to get divorced. However, it is highly recommended that a lawyer review your separation agreement before you sign it when children and assets are involved. Once you have a separation agreement, you do not need to use your lawyer to file for divorce. We offer divorce filing services in applicable provinces to make your life easier and keep costs down.

A divorce is a method of terminating a marriage between two individuals; your divorce will give each of you the legal right to marry someone else.