2023 is here and with it come changes in spousal and child support calculations due to indexation of federal and provincial income tax brackets and credits.
The Federal basic personal amount tax credit has been raised to a maximum of $15,000 (means-tested) and indexed personal tax credits at Federal and provincial levels have been adjusted.
The Divorcepath child support calculator will default to the 2023 tax year, with the option to view 2022 numbers as a prior-year calculation (a premium feature).
Child Support in 2023
Regarding child support, the Child Support Guideline table amounts have not changed, but the indexation factor of 6.3% could have a significant effect on special expenses which are based on after-tax income. Parents should use the Divorcepath child support calculator to determine how the changes affect them.
Spousal Support in 2023
For those paying or receiving spousal support, indexation could have a major impact on after-tax income and benefit payments, and thus the support amount. If the calculation is done using the 2023 indexation factor, the amount of support could change significantly.
Those using the without children formula should see minimal change as it is based on gross income (pre-tax). However, it is worthwhile to run an updated spousal support calculation to make sure that the amount is still appropriate.