Calgary High Income Spousal Child Support Lawyers handle high income and high net worth Calgary family law disputes. Our top rated* Calgary High Income Spousal Child Support Lawyers often deal with three big issues in these cases:
- determining the real income of a high net worth spouse who runs a professional practice, company or partnership;
- deciding how much child support should be paid when the payor’s income is way over $150,000 for child support because the Child Support Guidelines allow a court to depart from the table amount over $150,000 per year ( hint : you need to be far above $150,000 like 0ver $600,000-$1 million for this to work!)
- deciding how much spousal support should be paid when the payor’s income is over the $350,000 Spousal Support Advisory Guidelines “CAP” (hint: for amounts only slightly above the spousal support guidelines will likely apply but the higher the income above $350,000 the greater the chance of departure)
Founder, Lorne N. MacLean, QC recently obtained a near Canadian record for the highest combined interim spousal and child support that total between 83,000 and over $90,000 per month with over $1 million of arrears being ordered payable.
In today’s blog we answer the question: How does Calgary high net income spousal and child support work? Lorne N MacLean, QC has handled hundreds of these cases over the past 40+ years so who better to explain the rules.
Calgary High Income Spousal Child Support Lawyers 403-444-5503
A recent Alberta Queen’s Bench decision of KLH v SH, 2018 ABQB 41 (CanLII) provides guidance firstly, on when a court should depart from the child support guidleines in cases where income is over $150,000 and secondly on incomes over $350,000 for spousal support. The court made it clear incomes need to be far above $150,000 for a departure from the Child Support Guidelines and the paying parent faces the onus as set out in Francis v. Baker:
[77] Second, the law is clear that the court should only deviate from the Table amount if the payor rebuts the presumption of the suitability of that amount. While the payor is not compelled to call evidence in these circumstances, the evidence in its entirety must be sufficient to raise a concern that the applicable Table amount is inappropriate. There must be “clear and compelling evidence” for departing from the Guideline amount: Shiels v Shiels (August 21, 1997), Doc. Vancouver F950328 (BCSC), at para 27.
Calgary High Income Spousal Child Support Lawyers 403-444-5503
Calgary High Income Spousal Child Support Lawyers also appreciate the analysis of how the Spousal Support Advisory Guidelines work on incomes over $350,000 and in longer marriages with and without children:
[102] As a guiding principle, one spouse should not be allowed to leave a marriage of 18 years’ duration in a substantially better economic position than the other spouse: Shaw v Shaw, 2014 ABQB 82 (CanLII) at para 106. This principle is reflected in the Spousal Support Advisory Guidelines (the “SSAG”), which provides that duration ranges from .5 to one year for each year of marriage. However, support will be indefinite if the marriage is twenty years or longer in duration or, if the marriage has lasted five years or longer, when years of marriage and age of the support recipient (at separation) added together totals sixty-five or more. This is known as the “rule of 65”.
[107] I also conclude that the mother should benefit, at least to some extent, from the post-separation increase in the father’s income. I find there is the necessary link between the increase in the father’s income and the marriage….
[108] All this said, I also accept that the father’s income has increased in part because he has had more time to work since the separation. I also appreciate that the formulas in the SSAG are no longer presumptive once the payor’s income exceeds the $350,000 ceiling, although the closer to the ceiling, the more applicable the ranges may be.
[109] I find that the mother is entitled to spousal support in the amount of $8,000 per month. When this amount is combined with the child support due each month based on the father’s actual annual income, the mother will have more than enough to meet both her own and the children’s needs, as set out in her budget.
[110] The children, of course, are entitled to benefit from the increase in their father’s income. The mother, as I have found above, is entitled to benefit from some of the father’s post-separation increase in income.
[111] The $8,000 per month spousal support payment falls in the mid-range of support for incomes of $350,000. I use this income figure for spousal support because the formulas are reliable to this point, and because this figure reflects my comments above about the relative benefit each party should receive from the post-separation increase in income. It is also important to note that the combined total more than meets the mother’s monthly budget, while leaving a substantial amount of funds in the father’s hands as well…
[112] I find the mother is entitled to this level of support for a period of 12 years from the date of the Contract. Spousal support shall end when the father turns 65 in September 2025. This duration falls within the SSAG recommendation of 0.5 to 1.0 year of spousal support per year of cohabitation. This monthly amount of spousal support shall remain payable so long as the father’s guideline income is above $350,000 (until the September 2025 end date).
[113] I find there is no need to step-down spousal support over this time period. As the children grow up and leave home, the mother will receive less child support, thus will experience reduced monthly cash flow in any event. I note that the $8,000 per month spousal support figure is also the mid-range support using the “without child” formula.
Calgary High Income Spousal Child Support Lawyers – Key Take Aways
This case coupled with J.E.H. v. P.L.H., 2014 BCCA 310, provides a tight summary of what Calgary High Income Spousal Child Support Lawyers and their Calgary family clients should know for Calgary high net worth spousal support:
- The formulas for amount are no longer presumptive once the payor’s income exceeds the “ceiling”.
- The ceiling is not an absolute “cap”, as spousal support usually does increase for payor incomes above $350,000.
- The formulas are not to be applied automatically above the ceiling, and spousal support cases require an individualized, fact-specific analysis.
- Generally Where the payor’s income is 500-750,000, the formula ranges will often be used to determine the amount of spousal support, with outcomes falling in the low-to-mid range for amount.
- But when the payor’s income is “far” above the ceiling, then the amount of support ordered is often but not always below the low end of the SSAG range
- Interim spousal support outcomes are more likely to fall within the formula range, as the goal in the interim period is to maintain the financial status quo.
Calgary High Income Spousal Child Support Lawyers at MacLean Law have repeatedly been named Vancouver’s top* family lawyers and we bring that same level of experience and tenacity to our Calgary office.
