As discussed in <Access and Custody> what arrangements are made for the children will set the stage for child support.
Child Support isn’t a matter of who makes the most money paying to the other spouse.
Child Support guidelines recognize it is more expensive to run two households than just one. It also recognizes there are additional costs for the custodial parent such as food, clothing and requiring additional bedrooms. Also, there are extra costs depending on the number of children involved.
Money paid in child support is not deductible by the payer nor is it taxable in the hands of the recipient.
The Federal Child Support Guidelines (http://www.justice.gc.ca/eng/pi/fcy-fea/lib-bib/legis/fcsg-lfpae/index.html) have become the standard default for any discussion of child support.
The Child Support Calculator (http://www.justice.gc.ca/eng/pi/fcy-fea/lib-bib/tool-util/apps/look-rech/index.asp) is also useful and there’s an FAQ here. (http://www.justice.gc.ca/eng/pi/fcy-fea/faq/index.html)
To deviate from the grid you’ll need to show some special circumstances such as <shared custody> or <split custody>
If there’s an argument to be made to change the base amount, to calculate child support fairly each spouse will be required to submit income tax returns to show their income for the most recent three years along with supporting documents.
You’ll also need to confirm your returns by filing the Canada Revenue Agency Notice of Assessment for each of those years.
If you are an employee – as opposed to self employed – you should include your pay stubs, for as long a period as possible. If you can’t find them, get a letter from your employer stating your salary to date that year, with any bonus payments.
If you are self-employed you will need documents for the three most recent taxation years:
• Financial statements of your business or professional practice, other than a partnership; and
• a statement showing a breakdown of all salaries, wages, management fees or other payments or benefits paid to, or on behalf of, persons or corporations with whom you do not deal at arm’s length.
If you are partner in a partnership:
• Confirmation of your income and draw from, and capital in, the partnership for its three most recent taxation years.
And if you control a corporation, these documents for its three most recent taxation years:
• The financial statements of the corporation and its subsidiaries; and
• A statement showing a breakdown of all salaries, wages, management fees or other payments or benefits paid to, or on behalf of, persons or corporations with whom the corporation, and every related corporation, does not deal at arm's length.
For those who are a beneficiary from a trust:
• A copy of the trust settlement agreement and copies of the trust’s three most recent financial statements.
And if your income comes from employment insurance, social assistance, a pension, workers compensation, disability payments or any other source:
• The most recent statement of income showing income from the applicable source during the current year or, if such a statement is not provided, a letter from the appropriate authority stating the required information.
If you are considering a separation or divorce or you’ve been served with notice of a pending hearing in regards to support, call us.
<Set up an <appointment> or call us at 905-666-5326>
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