Our Surrey spousal support SSAG lawyer team routinely explains to our spousal support clients that the correct calculation of spousal support is tricky. Be careful to hire an experieinced Surrey spousal support SSAG lawyer or you may overpay or receive thousands of dollars less each year than you should. Our top Surrey spousal support SSAG lawyer group knows that net disposable income is used to properly calculate spousal support under the SSAG. Correctly calculating the incomes of the spouse’s and the proper expenses and deductions for each is crucial to avoid mistakes.
In Anderson v. Klahm the BC Supreme court decision reiterated the key rules to be applied to ensure a proper support calculation occurs:
[35] …..The SSAG use net disposable income for the purpose of determining spousal support. Net disposable income under the basic SSAG with children model is calculated by starting with the parties’ respective Guideline incomes and then deducting child support payments and s. 7 expenses. Next, income taxes and “other deductions” are subtracted from the incomes of both the payor and the recipient to obtain net disposable incomes.
[36] Article 8.3.1 of the SSAG discusses “other deductions” as follows:
Clearly permissible deductions are federal and provincial income taxes, as well as employment insurance premiums and Canada Pension Plan contributions. Union dues and professional fees are already deducted from Guidelines income under the adjustments of Schedule III to the Federal Child Support Guidelines. Deductions should be recognized for certain benefits, e.g. medical or dental insurance, group life insurance, and other benefit plans, especially those that provide immediate or contingent benefits to the former spouse or the children of the marriage.
[37] The procedure for spousal support recalculation defined in clause 24 of the agreement focuses on the parties’ incomes, child tax benefits and the children’s extraordinary expenses (clause 18). There is no reference to disclosure of other expenses such as life insurance and other benefit plans that would support the type of deductions discussed in Article 8.3.1 of the SSAG.
[38] This apparent ambiguity in the language of the agreement requires the court to consider extrinsic evidence of the parties’ intentions in regard to the calculation of net disposable income. The fact that there was no discussion of how income was to be determined under clause 22 during the parties’ negotiations is not evidence of their intentions. However, the fact that the parties used a straightforward net income calculation to determine the initial spousal support tends to support the claimant’s position.
[39] Clauses 22 to 24 of the agreement must be interpreted in a manner that reflects the language used by the parties, recognizes the basic principles of the SSAG, is consistent with the initial determination of spousal support and, at the same time, respects the underlying purpose for recalculating spousal support based on a significant change in the parties’ incomes. All of these factors lead me to conclude that there must be a deduction for extraordinary expenses, as well as child support. Further, child tax benefits received by either party must be added to their incomes for the purpose of calculating net disposable income.
Call us at 604-576-5400 to meet with one of our experienced Surrey spousal support SSAG lawyer members.
