Marital breakdowns can be some of the most difficult, emotional experiences for individuals to face. Among the many issues to consider are the financial elements related to the division of Net Family Property (i.e. equalization of net assets) along with Spousal and/or Child Support obligations.
In this article, we will provide an overview of some of the most common concepts related to calculating income for support purposes.
Some of the most common questions when it comes to marital breakdowns include:
- Who will be obligated to pay spousal support (i.e. alimony), if any?
- How much will the spousal support obligation be?
- What is the difference between spousal and child support?
- How much will the child support obligation be, if any?
Spousal support and child support are two different types of support that may be required after a marital breakdown. These forms of support are applicable in different situations and have different tax treatments. Before the amount of either type of support can be determined, it is important to determine the applicable income of the payor.
Income Calculations in both child and spousal support can become complicated depending on several factors. For example, for some individuals, annual income is as simple as employment income. For others, owning a business personally or through corporate holdings can make the income calculations more complex. As a result, it is common that a family lawyer will reach out to a qualified expert witness with specialized knowledge in this area. This often involves the engagement of a Chartered Business Valuator (CBV), or other professionals who possess the requisite experience and expertise.
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