High-Income Payers and the SSAG Ceiling in Ontario

If you or your spouse earn a very high income, you may have heard that spousal support formulas stop working at a certain point. That is partly true, and it often causes confusion about what happens next.

This article explains in general terms what the ceiling in the Spousal Support Advisory Guidelines (SSAG) means in Ontario, how support is approached above it, and what to prepare. The results vary a great deal with the facts.

What the SSAG are, and what the ceiling means

The SSAG are not law, but judges often base their spousal support decisions on them. They were designed for the federal Divorce Act, and courts and lawyers also often use them under provincial legislation such as Ontario's Family Law Act.

The formulas do not apply mechanically at the extremes. Above a payor income of $350,000, discretion is used, and incomes below $20,000 and $30,000 require adjustments. The figures are stated in the Guidelines without indexing, and courts may approach them differently, so ask a lawyer how they are treated in your case.

How the formulas work below the line

It helps to see what the formulas do before the ceiling is reached. Without child support, the range is 1.5% to 2% of the difference between the spouses' gross incomes for each year of cohabitation, capped at 50%, and the top of the range cannot exceed the amount that would equalize net incomes. With child support, the range leaves the lower-income recipient with 40% to 46% of the couple's combined Individual Net Disposable Income.

What courts do above the ceiling

There is no set formula result above the ceiling. Courts return to the general factors: each spouse's condition, means, needs and other circumstances, including how long the spouses cohabited and the roles each played. An order should recognize economic advantages or disadvantages from the marriage or its breakdown, share the financial consequences of caring for children, relieve economic hardship, and promote self-sufficiency so far as practicable.

Entitlement still comes first. It can be compensatory, non-compensatory or contractual, and an income gap on its own does not create it. Where child support is also in play, the court must give child support priority.

• Higher income does not remove the need to show entitlement.
• The formula range can serve as a reference point, but it is not binding.
• Recognized reasons to go outside the ranges include debt payments, prior support obligations, illness and disability, property division, and non-taxable payor income.
• Support described as indefinite does not necessarily mean permanent; it remains subject to variation and review.

Interim support and evidence of income

While an application is pending, the court can make an interim spousal support order. The Guidelines apply to interim orders too, and where income evidence is thin, ranges can be estimated using alternative income figures. Compelling financial circumstances just after separation can justify interim support above or below the range.

High-income cases often involve complex pay, such as bonuses, corporate income or investments. The Guidelines start from the definition of income in the Federal Child Support Guidelines, and section 19 of those Guidelines is often the basis for imputing income. Online tools are limited: Ontario's page notes that the SSAG calculator it links to considers only employment income and simple calculations.

What to do next

• Gather several years of tax returns, notices of assessment and pay records for both spouses.
• List all sources of income, including bonuses, business income and investment income.
• Document debts, existing support obligations and how property is being divided.
• Write down the length of cohabitation and each person's role, including child care and career choices.
• Do not rely on an online calculator alone; have a lawyer review the numbers.

A lawyer can explain how a court is likely to treat income above the ceiling in your circumstances and whether a negotiated agreement makes sense.

Frequently asked questions