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Difference between revisions of "Child Support"
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To claim this deduction, the lawyer must write a letter to the CRA setting out what portion of their fees were attributable to advancing or enforcing a child support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case, so that they can keep a log of time spent on the child support claim. | To claim this deduction, the lawyer must write a letter to the CRA setting out what portion of their fees were attributable to advancing or enforcing a child support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case, so that they can keep a log of time spent on the child support claim. | ||
In a situation of shared parenting, where each parent is required to pay to the other the Guideline amount based on their income (a "set-off amount"), it is common for the parent with the higher income to just pay the difference between the two amounts. In recent times, the Canada Revenue Agency (“CRA”) has taken the position that, if an agreement or a court order says only that the higher income earning parent will pay the difference, then there is only ONE payor and ONE recipient of child support and the CRA will not allow the parents to share in any of the grants or tax deductions relating to the children or allow the parents to claim the children as dependents on their taxes. It is important, therefore, to state that each parent pays child support to the other and probably best not even to mention the net amount actually paid. | |||
Suggested wording to deal with child support in such situations in an agreement might be as follows: | |||
1.1 The present parenting arrangements made with respect to the children qualify as shared custody within the meaning of the Federal Child Support Guidelines (the “Guidelines”), in that it is anticipated by | |||
Parent 1 and Parent 2 that the children will live with each Parent not less than 40% of the time. | |||
1.2 For the purposes of determining the basic child support payable pursuant to the Guidelines, Parent 1 and Parent 2 agree that: | |||
(a) Parent 1’s annual income for present calculation purposes is $XX,XXX; | |||
(b) Parent 2’s annual income for present calculation purposes is $YY,YYY; | |||
(c) Such that Parent 1 will pay Parent 2 the sum of $XXX as base Guidelines child support for 2 children, and Parent 2 will pay Parent 1 the sum of $YYY as base Guidelines child support for 2 children. | |||
Some lawyers and accountants even suggest that actual cheques for the full amounts should be exchanged to show that each parent pays child support to the other. | |||
==Child support and social assistance== | ==Child support and social assistance== | ||
