Custom Calculation of Spousal Support
The following chart and formula may be utilized to assist participants to perform a customized calcuation of their spousal support amount.
1. Calculate any shortfall or excess:
Combined net income: ____________
Less total costs for children: ____________
Amount left for parents: ____________
Less total parents' personal needs: ____________
Amount of "shortfall" or excess: _________ x 1/2 = _________
(each party's share of shortfall or excess)
2. Calculate basic spousal support "entitlement"
W entitled to receive: W personal needs: __________
+/- shortfall/excess: __________
total entitlement: __________
W has: W's net income: __________
Less W's obligation for children: __________
Amount W already has to meet personal needs: __________
Wife's "entitlement" = __________
Less amount wife has to meet = __________
Net spousal support needed = __________
3. Augment basic entitlement with resulting tax liability.
Augment needed spousal support by anticipated tax liability.
e.g., if net spousal support needed = $1,000, tax liability might be 15% federal, 7% state, with resulting spousal support of 22% additional or $1,220.
4. Share net tax savings
Consider augmenting spousal support by 1/2 tax savings.
e.g., if husband's tax rate is 28% federal and 9% state, H tax rate = 37%; Wife's taxes are 15% of federal, 7% of state, W tax rate = 22%. The difference is 15%, which divided in half - 7.5%, so wife's total support = $1,220 + ($1,220 x 7.5%) = $1,311.57.