Hi, my name is Shana Gordon-Katz and I am an Associate here at Feldstein Family Law Group. I am speaking today about the necessity of increasing the amount of child support when a payor’s income increases.
The parent with whom the child or children resides less than 40% of the time, has an obligation to pay child support to the other parent. Too many payors believe that, notwithstanding an agreement or court order that requires annual disclosure, they can continue to make the same monthly payments even if their income increases. This same payor, however, will want a decrease in the support payments if their income decreases. This is a serious problem.
If you are a payor of child support and your income increases, you have an obligation to increase the amount of child support being paid. Should you not, and you fail to disclose the increase, not only will you be in breach of your agreement or court order, you will most likely be called upon to pay it at a later date.
If the increase in your income was substantial and you do not provide the necessary disclosure, a court could order you to pay retroactive support should they should find blameworthy conduct on your part.
I will not get into specifics as to how far back you may need to account for as each case is different, but do know that playing games with non-disclosure is unfair to the support recipient and to your children. Even if your agreement is an old one that does not require annual disclosure and puts the onus on the recipient to make request for your income disclosure, you may very well be responsible for any past increases.
In those case,s be upfront with the support recipient or ensure that you set aside the money for when you are called upon to pay. Be aware that sheltering, hiding or otherwise failing to disclose changes in your income are not looked upon favourably by a Court.
Child support is a right of the child and not the recipient. You, as the payor, must ensure that you pay according to the Child Support Guidelines.
If you have any questions or would like to schedule a consultation, please feel free to visit our website at www.separation.ca or call us at (905) 581-7222.