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Difference between revisions of "Child Support Guidelines"
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Child Support Guidelines (view source)
Revision as of 21:56, 29 November 2016
, 21:56, 29 November 2016→The calculation of income
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According to Rule 5-1 of the [http://canlii.ca/t/8mcr Supreme Court Family Rules] and Rule 4 of the [http://canlii.ca/t/85pb Provincial Court (Family) Rules], when someone makes an application for child support, the payor or both the payor and recipient are required to disclose their financial circumstances using a court form called a Financial Statement. Financial statements require each party to set out their income and expenses, and assets and liabilities. Certain income documents must be attached to a financial statement, typically: | According to Rule 5-1 of the [http://canlii.ca/t/8mcr Supreme Court Family Rules] and Rule 4 of the [http://canlii.ca/t/85pb Provincial Court (Family) Rules], when someone makes an application for child support, the payor or both the payor and recipient are required to disclose their financial circumstances using a court form called a Financial Statement. Financial statements require each party to set out their income and expenses, and assets and liabilities. Certain income documents must be attached to a financial statement, typically: | ||
#the last three years' | #the last three years' of tax returns (what's required is the complete income tax and benefit return, not tax return "summaries" or "informations"), | ||
#all notices of assessment and reassessment received for the last three tax years, | #all notices of assessment and reassessment received for the last three tax years, | ||
#the party's most recent paystub, showing his or her earnings to date, or if the party isn't working, then his or her most recent WCB statement, social assistance statement, or EI statement, and | #the party's most recent paystub, showing his or her earnings to date, or if the party isn't working, then his or her most recent WCB statement, social assistance statement, or EI statement, and | ||
#business records like financial statements and corporate income tax returns, if the party has a company. | #business records like financial statements and corporate income tax returns, if the party has a company. | ||
The basic rule of thumb is that a party's income for the purposes of the Guidelines is the amount stated at line 150 of the payor's most recent tax return, although there are important exceptions that apply when a person's income is from self-employment. A party's income includes all of the party's income, not just income from a job. ''Income'' might include bonuses, rental income, company dividends, government benefits, interest from an investment and so forth, as well as employment and self-employment income. | The basic rule of thumb is that a party's income for the purposes of the Guidelines is the amount stated at line 150 of the payor's most recent tax return, although there are important exceptions that apply when a person's income is from self-employment. A party's income includes all of the party's income, not just income from a job. ''Income'' might include bonuses, rental income, profit from stock options, company dividends, Workers Compensation payments, long term or short term disability payments, personal injury awards (that relate to loss of income), pension income, government benefits, interest from an investment and so forth, as well as employment and self-employment income. | ||
Section 2(3) of the Guidelines requires that the most current income information be used; this can include a calculation of income based on paystub evidence. Most of the time income is based on the most recent tax year, since the income information for that year is complete. This means that there is usually a one-year lag between the amount of support being paid and the payor's income. However, if a payor's current income can be known with certainty, such as if the payor is an employee without bonus or commission income, child support can be determined using the payor's current income. | Section 2(3) of the Guidelines requires that the most current income information be used; this can include a calculation of income based on paystub evidence. Most of the time income is based on the most recent tax year, since the income information for that year is complete. This means that there is usually a one-year lag between the amount of support being paid and the payor's income. However, if a payor's current income can be known with certainty, such as if the payor is an employee without bonus or commission income, child support can be determined using the payor's current income. | ||
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===Government benefits=== | ===Government benefits=== | ||
Payments from WCB, Employment Insurance, CPP, Old Age Security, and | Payments from WCB, Employment Insurance, CPP, Old Age Security, and social assistance all count as income under the Guidelines. If a party is receiving these payments as a temporary substitute for employment income, the party's income may be assessed at his or her usual income. A temporary period on social assistance, for example, won't entitle a payor to have his or her income assessed at that unusually low level into the future. | ||
Note that Canada Child Tax Benefits are not considered income for basic child support purposes, but may be taken into account when determining the sharing of special and extraordinary expenses. | |||
===Fluctuating income=== | ===Fluctuating income=== | ||
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===Unexpected losses and gains=== | ===Unexpected losses and gains=== | ||
Where a payor has suffered an unexpected loss, such as a corporate loss or an investment loss, or enjoyed an unexpected gain, such as from cashing in RRSPs or selling stock, the court has the discretion to decide to take this into consideration in setting the payor's income, and potentially not consider the loss or gain. | Where a payor has suffered an unexpected loss, such as a corporate loss or an investment loss, or enjoyed an unexpected gain, such as from cashing in RRSPs or selling stock, the court has the discretion to decide to take this into consideration in setting the payor's income, and potentially not consider the loss or gain, if it was a one-time occurrence. | ||
===Court awards=== | ===Court awards=== | ||
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===Windfalls=== | ===Windfalls=== | ||
Money received from an inheritance, the sale of a house, or a lottery win does not count as income under the Guidelines | Money received from an inheritance, the sale of a house, or a lottery win does not count as income under the Guidelines. Any interest or other investment income earned or that should reasonably be earned from the inheritance or lottery win would count as income. | ||
==Imputing income== | ==Imputing income== | ||