Child Support

with Lianne B. Eklove

 

 

Transcript from Child Support Video

Please note: The script may not be exactly what is spoken, but contains the same information as presented in the video. I am Lianne Eklove of the Feldstein Family Law Group. Today I shall be discussing Child Support and addressing the most common questions parents have about their rights and obligations related to this issue.

First, Who pays child support?

Child support is payable by the non-custodial or access parent to the custodial parent (that is, the parent with whom the children have their primary residence). Consequently the children’s primary residence, meaning where they live most of the time, will impact the parents’ child support rights and obligations.

How often is child support paid and how are the payments made?

Child support is paid monthly. Unless the parties agree otherwise in writing, the child support payments are enforced by the Family Responsibility Office (also known as the FRO). Monthly Child Support payments are remitted directly by the payor’s employer to the FRO who then deposits the funds into the account of the recipient. FRO enforcement is highly recommended in circumstances of reluctant or historically delinquent payors. If both parties agree in writing, however, they can withdraw from enforcement by the FRO and the payor spouse will make child support payments directly to the recipient, usually by way of post dated cheques.

How is the amount of monthly child support determined?

The quantum of child support payable is determined by the Child Support Guidelines. The Guidelines provide an easy to use TABLE that established the monthly amount the payor shall pay based on the following criteria:

• the province in which the children reside,
• number of children eligible for support and
• the payor's income.

Child support should be based on current income which is usually the payor’s income for the last taxation year. Parties are required to produce their Income tax returns and notices of assessment for the last three taxation years as well as recent pay stubs. If the payor’s income has changed from the previous taxation year, the payor must provide the most up to date income information available (such as letters of employment, recent paystubs and employment contracts). When a payor is self employed, the determination of income can be more complicated. The income he chooses to declare to CRA for tax purposes is usually not a true reflection of his income for support purposes. The Guidelines allow for further investigation and adjustment to determine his true income. In addition to personal income tax returns and notices of assessment, a self employed parent will also be required to produce Corporate Income tax returns, Corporate financial statements and other relevant documentation.

Are child support payments taxable or deductible?

No, Child support payments are tax neutral. Unlike spousal support payments made pursuant to t an order or written agreement, child support payments are not taxable to the recipient and are not tax deductible by the payor.

Who is eligible for child support?

Children of your marriage or of your common law relationship are considered children eligible for support unless the child withdraws from parental control. In rare case the payor may also be obligated to contribute to the support of his spouse’s’ children from a previous relationship or marriage in the event it is determined that he stands in loco parentis (that is, in the place of a parent) to those children. It is important to note that Child support is the right of the child and can not be bargained away per se. In fact the Court has the authority to deny the granting of an order for divorce unless it is satisfied that proper arrangements have been made for the support of the children in accordance with the Child Support Guidelines.

For How long with child support be payable?

Child support is usually payable through the first degree, certificate or diploma assuming the child attends school on a full time basis. We now turn to special or extraordinary expenses In addition to the table amount, both parents are obligated to contribute to the children's reasonable and necessary special or extraordinary expenses in proportion to their respective incomes. Those expenses can include but are not limited to;

• child care expenses (such as day care, nanny and before and after school care),
• private school,
• post secondary education expenses
• summer camps,
• tutors;
• therapists;
• medical/ dental/orthodontia expenses not covered by a parent’s plan and
• extraordinary extracurricular activity expenses

Is the Table amount absolute? Are their circumstances where the Table Amount may be adjusted upwards or downwards?

For the most part the table amount is non-negotiable. Unless alternative arrangements have been made for the support of the children or in other rare circumstances, the table amount is absolute. Those rare circumstances where the straight table amount may be modified include but are not limited to the following:

• Situations wherein the payor spouse earns more that $150,000.00 per annum – in those circumstance, the court has ability to order more or less than the Guideline amount having regard to the conditions, means, needs and other circumstances of the parties and the children.
• Where a child lives away from home for post secondary education purposes, the table amount may be modified for those months the child is away a school;
• In circumstances of split custody where one child has their primary residence with one parents and another child has their primary residence with the other parent, the child support obligation owed by one parent to the other are set off.
• In circumstances of shared custody where the access parents has the children 40% of the time or more, again there may be a set off of child support, adjusted further having regard to other factors.

Once Child support is established, does the amount remain the same?

No, child support is reviewable each and every year. Both parties have an absolute obligation to provide to the other their updated income information in the form of Income tax returns and notices of assessment each year and child support is adjust accordingly. The Child Support Guidelines and the Tables can be found here on our website, along with other articles, cases and materials on this subject. If you would like more information on this and/or other issue, please feel free to contact us at the Feldstein Family Law Group. Thank you.