Confused by the terminology? Learn why 'Spousal Support' (Alimony) and 'Child Support' are treated completely differently by the CRA and the Family Courts.
Book A ConsultationLegal Review: The tax implications and priority rules in this guide follow the Federal Child Support Guidelines and the Spousal Support Advisory Guidelines (SSAGs), reviewed by Deepa Tailor, Senior Family Lawyer.
In Ontario, Child Support takes priority. This is known as the "Priority Rule." If a payor does not have enough income to pay both, the full amount of Child Support must be paid first. Spousal Support (often called Alimony) is only calculated on the remaining income.
Furthermore, Child Support is the right of the child (automatic), whereas Spousal Support is not automatic—the recipient must prove they are entitled to it (e.g., due to income disparity or sacrifices made during the marriage).
They differ in Purpose, Tax, Duration, and Enforcement.
Child Support is tax-neutral (not deductible for the payer, not taxable for the receiver). Spousal Support is taxable (deductible for the payer, taxable income for the receiver).
Every child is entitled to support. A spouse is only entitled if they can prove "Compensatory" (career sacrifice) or "Non-Compensatory" (financial need) grounds.
Child Support ends when the child is 18 or finishes school. Spousal Support duration depends on the length of the marriage (e.g., 0.5 to 1 year of support for every year married).
Child Support tables are law (hard numbers). Spousal Support Guidelines (SSAGs) are suggestions (ranges of Low, Mid, High).
The court will prioritize the children's standard of living.
We calculate Child Support first based on your Gross Income. Then, we subtract that amount (plus taxes) to determine your 'Net Disposable Income.' Spousal Support is calculated only on what is left.
If you have a modest income, you may pay $0 in Spousal Support because the Child Support obligation consumes all available surplus. The law ensures children do not live in poverty, even if it means the ex-spouse receives nothing.
We look at Line 15000 of your T4 tax return. If you are self-employed, we add back deductions to find your true income.
We look up the Federal Table amount for your income and number of children. This number is non-negotiable.
We determine if the lower-income spouse is entitled. Did they stay home to raise kids? Is there a massive income gap?
We use software (DivorceMate) to generate the Spousal Support range (Low, Mid, High) and negotiate the final number.