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Difference between revisions of "Divorce Act Basics"
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However child support gets paid, it's important for the payor to keep a record of how much was paid and when it was paid, perhaps from receipts provided by the recipient, from cancelled cheques or from bank statements. This can help prevent arguments about whether a payment was late or missed altogether. | However child support gets paid, it's important for the payor to keep a record of how much was paid and when it was paid, perhaps from receipts provided by the recipient, from cancelled cheques or from bank statements. This can help prevent arguments about whether a payment was late or missed altogether. | ||
===Are there tax consequences?=== | |||
There are no tax consequences when child support is paid. The payor isn't allowed to deduct child support payments from the payor's taxable income, and the recipient is required to report child support payments as taxable income. | |||
===How are orders for child support changed?=== | ===How are orders for child support changed?=== | ||
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===Is a spouse’s conduct taken into account?=== | ===Is a spouse’s conduct taken into account?=== | ||
Under the ''[[Divorce Act]]'', the court is not allowed to consider a spouse’s behaviour when making an order about spousal support. | Under the ''[[Divorce Act]]'', the court is not allowed to consider a spouse’s behaviour during the marriage when making an order about spousal support. | ||
===How is spousal support paid?=== | ===How is spousal support paid?=== | ||
Most of the time, spousal support is paid every month, usually on the first day of the month. If child support is also being paid, child support and spousal support payments can be staggered if that's fair to both parties. It is also possible for spousal support to be paid in a single lump sum. Payors can be required to pay by giving the recipient a series of post-dated cheques. | Most of the time, spousal support is paid every month, usually on the first day of the month. If child support is also being paid, child support and spousal support payments can be staggered if that's fair to both parties. It is also possible for spousal support to be paid in a single lump sum. Payors can be required to pay by giving the recipient a series of post-dated cheques. | ||
Where the payor cannot pay both spousal support and child support, under s. 15.3 the court must give priority to child support. | |||
===Are there tax consequences?=== | ===Are there tax consequences?=== | ||
There are tax consequences when spousal support is paid on a regular, repeating basis. | There are tax consequences when spousal support is paid on a regular, repeating basis. There are no tax consequences when spousal support is paid as a single lump sum. | ||
The recipient of regular payments of spousal support must declare the support received in their income tax return and pay tax on it, just as if the support payments were employment income. The payor can deduct the spousal support paid from their taxable income, like how RRSP contributions can be deducted from taxable income. This usually means that the recipient has to pay tax at the end of the year while the payor gets a tax refund. | The recipient of regular payments of spousal support must declare the support received in their income tax return and pay tax on it, just as if the support payments were employment income. The payor can deduct the spousal support paid from their taxable income, like how RRSP contributions can be deducted from taxable income. This usually means that the recipient has to pay tax at the end of the year while the payor gets a tax refund. | ||
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A provisional order has no effect until and unless it is confirmed. | A provisional order has no effect until and unless it is confirmed. | ||
Under the new ''Divorce Act'' this process will be replaced with a process that requires only one hearing, usually in the province where the respondent lives. | |||
==Resources and links== | ==Resources and links== | ||
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* ''[http://canlii.ca/t/7vbw Divorce Act]'' | * ''[http://canlii.ca/t/7vbw Divorce Act]'' | ||
* [https://www.parl.ca/DocumentViewer/en/42-1/bill/C-78/third-reading Bill C-78], the bill that will change the ''Divorce Act'' | |||
===Links=== | ===Links=== | ||
