Spousal support is often a contested matter after a couple decides to separate or divorce in British Columbia.
This type of financial support, previously known as “alimony”, is intended to ease the transition to an independent, self-sufficient life after a marriage or cohabitation arrangement breaks down.
The decisions made at this point can greatly affect the spouse’s finances moving forward, so it’s essential to calculate the right amount and understand the rights and responsibilities concerning spousal support in British Columbia.
Let’s consider how spousal support is calculated, its usual duration, and the impact of child support on awards.
How much spousal support is payable in BC?
Typically, the Spousal Support Advisory Guidelines offer help when calculating spousal support in British Columbia. Understanding these guidelines is important for separating couples, though they are not legally binding.
When calculating spousal support, the following factors are key:
- The length of the marriage.
- The income of each spouse.
- Whether there are children in the relationship.
To make things a little easier, the Canadian government has devised a formula that can be used to calculate spousal support based on these main factors when a marriage or cohabitation agreement ends.
While the tool is a useful guide, every separation is somewhat unique and other factors besides the raw figures can be considered by the courts. These other factors may render the calculation inequitable and a judge will then need to adjust the amount accordingly.
A seasoned spousal support lawyer can offer personalized advice on the likely considerations and calculations that apply in individual cases, so that both spouses are clear on their rights and responsibilities.
What is the duration of spousal support in BC?
The two main factors affecting the duration of spousal support in B.C. are:
- The length of the marriage.
- Each spouse’s circumstances.
The general rule is the longer the marriage, the longer support is paid. On average, spousal support in British Columbia lasts between half a year and one year for every year of marriage.
If the marriage lasts 20 years or more or has lasted five years or longer AND the years of marriage and age of the support recipient (at separation) added together total 65 or more, the award of spousal support may be permanent (no duration is specified).
How are spousal support calculations influenced by child support in BC?
Spousal support calculations are generally more complex than child support—and matters may also be more contested.
While spousal support focuses on balancing the incomes between ex-partners, child support simply considers the child’s financial needs.
In fact, child support also influences spousal support payments in British Columbia. Child support takes preference over spousal support because the court will prioritize the child’s needs. Once these have been calculated, the remaining financial responsibilities of the partners can be assessed.
Ultimately, judges want to see fair outcomes that address the child’s needs and remain manageable for the parents.
When considering how to calculate spousal support, therefore, we need two different methods to accommodate both couples with children and without children.
Spousal support calculated without child support
For couples with no children, establishing an approximate amount of spousal support from the formula is relatively straightforward. A standard calculator is all you will require, especially with shorter marriages.
Longer marriages are slightly more complex, as the calculation will need to attempt to almost equalize both spouses’ incomes.
To make the spousal support calculation, you’ll need to quantify your spouse’s gross income, your own gross income, the age of the recipient spouse, and the length of the marriage.
- Work out the difference between the spouses’ gross incomes for each year of the relationship.
- The spousal support amount ranges from 1.5 to 2 percent of this amount, up to a maximum of 50 percent (for the longest marriages over 20-25 years).
Note that, for marriages of 25 years or longer, the range is from 37.5 to 50 percent of the income difference, which almost equalizes the spouses’ incomes.
If this is confusing for spouses, the example below will help clarify the calculation.
Note, too, that a “net income cap” applies in some cases. This prevents the recipient from ending up with more than 50 percent of the combined net disposable income in long marriages.
Example Spousal Support Calculation
Spouse A earns $70,000 per year and Spouse B earns $120,000 per year (net income).
The spousal support calculation will attempt to adjust the net incomes of each spouse to be $95,000 per year but the final calculation will depend on these other factors:
- The length of the marriage:
- A 5-year marriage will result in a guideline annual support amount of approximately $3,750-5,000 ($312-$417 per month) for 2.5 to 5 years.
- A 10-year marriage will result in a guideline annual support amount of approximately $7,500-10,000 ($625-$833 per month) for 5 to 10 years.
- A 20-year marriage will result in a guideline annual support amount of approximately $15,000-20,000 ($1,250-$1,667 per month) for 10 to 20 years.
- Ease of earning income: if it is too challenging for the recipient to earn income based on age, experience, and general employability, the numbers can be adjusted upwards accordingly.
Spousal support calculated with child support
For couples with children, the child support element complicates the spousal support calculation, particularly with shorter relationships.
In short marriages with children, spousal support payments are generally considerably higher than if there are no children.
To calculate the spousal support payment, you must first calculate the individual net disposable income (INDI) of each spouse. The INDIs of both spouses are added together, and the range of spousal support amounts required for the lower-income recipient spouse to be left with 40-46 percent of the combined INDI must be calculated.
These can be complicated calculations requiring the assistance of dedicated professionals. Consultation with a spousal support lawyer is recommended if you are having problems calculating spousal support amounts and/or durations in relationships with or without children.,
For a free 30-minute consultation about your legal options during a divorce or separation, contact the team at Legalbird today.
