What financial disclosure do I exchange? Do I have to provide my financial information?
It is important to review and exchange financial information every year. Payors and Recipients of child support must exchange income tax returns (T1 General) and Notices of Assessment every year.
What if I have not filed my taxes, do I still provide my financial information for child support?
If you did not file your taxes, then you must exchange at least the last three pay stubs of the year and T4s. There is no excuse for not exchanging financial information each year. The Court expects this is done in a timely manner and that child support is recalculated accordingly.
How much is child support?
Calculation Child Support (The Basics)
Child support is paid (in full) when both section 3 or section 9 table amounts AND section 7 extraordinary expenses are paid monthly by the payor to the recipient.
It is not paid to the child directly regardless of age as long as the child is a dependent child as defined by either the Divorce Act or the Family Law Act. If you have questions about what defines a “dependent child”, please feel free to book a consultation with my office by calling (780) 761-1070 or by email to email@example.com. Please note there is a fee for this service.
Typically, child support is paid on the 1st day or each month unless the payor and recipient agree to a different date.
STEP 1: Calculate section 3 or section 9 table amounts
I use the Federal Child Support Calculator provided by Justice Canada’s website.
Here is the link: https://www.justice.gc.ca/eng/fl-df/child-enfant/2017/look-rech.asp.
Look at my comments below and try entering the appropriate amounts. Remember to use the correct table when using this calculator. For child support calculations prior to November 22, 2017 you must use the old 2011 child support tables. This link offers both tables but you must choose the correct table.
You enter only gross income amounts. If you are not self-employed, then you look at line 150 of your income tax return or notice of assessment. If you are self-employed, you will need to agree on what a reasonable gross income, first.
If you have a mixture of self-employment and T4 income then you must add the two gross incomes together and use the total amount of income. This can get tricky, so be sure to obtain legal advice as over payments and under payments of child support can be difficult to deal with as time passes.
Remember we are just a consultation away and once you have a clear understanding of this calculation, you can use it year after year without needing further legal advice.
I have children with different people, how much child support do I pay?
You enter the number of children you have with the recipient/payor, separately. If you have several children with different payors or recipients then you treat each child/children separately. You do not use the total number of children you have.
What if I have shared parenting, how much child support do I pay?
You enter the province where the payor lives. If you have shared parenting, then both parties/parents are payors. So, you enter both parties’ gross incomes into this calculator. You would subtract the amounts each payor owes and the difference is paid to the lower income earner. This is referred to as the section 9 table amount.
If you do not have shared parenting, then you only use the payor’s gross income and the province where the that payor lives. This is referred to as the section 3 table amount.
What is considered shared parenting?
This can be complicated as it is based on each party having the child/children for at least 40% of the year. This is based on regular or routine parenting time/access not including holidays. Again, be sure to obtain legal advice as this significantly impacts the amount of child support payable.
What does child support cover?
Section 3 or section 9 table amounts (as discussed above) cover the child/children’s share of basic living expenses. Basic living expenses are defined as: groceries, utilities, rent/mortgage, basic school expenses and basic school supplies though if there is a significant difference in the payor’s income and recipient’s income, then this may become a section 7 extraordinary expense. This will be discussed in the next section.
STEP 2: Determine section 7 extraordinary expenses and Calculate section 7 expenses
If you are joint legal guardians or have joint custody (joint decision making) then you must agree what is a section 7 expense BEFORE you incur the expense. If you cannot prove that you agreed on the section 7 expense, then a Judge may not agree the other parent/party should pay for the section 7 expense.
What is covered as section 7 expenses? What are section 7 expenses?
Broadly defined, section 7 expenses are any expenses that a child/children may need which are not basic living expenses.
So, items such as dental or medical costs not covered by a health benefits plan: braces (if medically necessary), glasses (if medically necessary), prescriptions, inhalers, disability/mobility aids, counseling, extracurricular activities (dance, sports, extended travel costs, competition fees, equipment etc.), car insurance, car, bus pass, hot lunch fees, cell phones, private school fees, tutoring costs, post secondary tuition and books.
Often Daycare is considered a section 7 expense even if daycare is not used by both parents/parties as long as it is needed due to working or attending school. REMEMBER you must agree these are section 7 expenses.
If you cannot agree, then, unfortunately a Court application will be needed so a Judge can sort this out.
How do I calculate section 7 expenses?
Section 7 expense are paid proportionately to each parties’ income. You need both the payor and recipients’ gross income information to calculate proportionate shares. For example:
If a payor’s gross income is $70,000 and a recipient’s gross income is $30,000 then their total income is $100,000. If you divide each party’s income by their total income, then the payor’s proportionate share is 70% (70,0000 divided by 100,000) and the recipient’s proportionate share is 30% (30,000 divided by 100,000).
If you are interested in how child support is enforcement, please check out our website for this article: Enforcement and Collection of Child Support by The Maintenance Enforcement Program. Our website address is www.ramosfamilylaw.ca. If you wish to book a consultation, please email firstname.lastname@example.org or call us at (780) 761-1070.
Author: Ms. Ning Ramos, Barrister and Solicitor