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Difference between revisions of "Child Support Guidelines"
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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 loos 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 loos or gain. | ||
===Court | ===Court awards=== | ||
If a payor has received an award from a civil court proceeding such as for wrongful dismissal or for personal injury, the court may attribute the portion of the award allocated for ''lost wages'' to a payor's income. The whole amount of the award, including the parts relating to pain and suffering, will not be seen as income for the purposes of the Guidelines, just the part intended to compensate for lost wages. | If a payor has received an award from a civil court proceeding such as for wrongful dismissal or for personal injury, the court may attribute the portion of the award allocated for ''lost wages'' to a payor's income. The whole amount of the award, including the parts relating to pain and suffering, will not be seen as income for the purposes of the Guidelines, just the part intended to compensate for lost wages. | ||
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Money received from an inheritance, the sale of a house or a lottery win does not count as income under the Guidelines. It might be family property that spouses have the right to share in, but it isn't income for the purposes of child support. | Money received from an inheritance, the sale of a house or a lottery win does not count as income under the Guidelines. It might be family property that spouses have the right to share in, but it isn't income for the purposes of child support. | ||
==Imputing | ==Imputing income== | ||
To ''impute'' income means to attribute income to a payor above that which the payor claims he or she earns, usually for making a support award based on that higher amount. Typically, someone asks the court to impute income to a payor where: | To ''impute'' income means to attribute income to a payor above that which the payor claims he or she earns, usually for making a support award based on that higher amount. Typically, someone asks the court to impute income to a payor where: | ||
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<blockquote>"6. As a general rule, a parent cannot avoid child support obligations by a self-induced reduction of income."</blockquote> | <blockquote>"6. As a general rule, a parent cannot avoid child support obligations by a self-induced reduction of income."</blockquote> | ||
==="Grossing | ==="Grossing up" income=== | ||
Section 19(1) of the Guidelines also says that: | Section 19(1) of the Guidelines also says that: | ||
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Grossing up a payor's income can be a bit tricky, and requires a knowledge of the income tax laws applicable to First Nations payors earning income on First Nations reserve lands and to payors earning income outside of Canada. If you have a problem in this area, you should consider retaining a lawyer to help you. | Grossing up a payor's income can be a bit tricky, and requires a knowledge of the income tax laws applicable to First Nations payors earning income on First Nations reserve lands and to payors earning income outside of Canada. If you have a problem in this area, you should consider retaining a lawyer to help you. | ||
==Child | ==Child support and parents' new partners== | ||
Parents and guardians usually move on with their lives after the relationship which produced their children has ended, meet new people and enter into new romantic relationships. Parents and their new partners are often concerned about how their relationship will impact on the parent's obligation to pay child support. The parent might be concerned to know whether the new partner's income will be added to his or her income in calculating child support. The new partner will want to know whether he or she is now on the hook for support and must contribute to the parent's payments or towards the parent's children. | Parents and guardians usually move on with their lives after the relationship which produced their children has ended, meet new people and enter into new romantic relationships. Parents and their new partners are often concerned about how their relationship will impact on the parent's obligation to pay child support. The parent might be concerned to know whether the new partner's income will be added to his or her income in calculating child support. The new partner will want to know whether he or she is now on the hook for support and must contribute to the parent's payments or towards the parent's children. | ||
===Basic | ===Basic child support payments=== | ||
The income of a parent's new partner is not relevant to the payment of child support, nor is a payor's new partner obliged to pay child support. The new partner will not inherit the child support obligation in the event the payor dies, and the recipient of support won't be able to pursue the new partner for continuing or supplemental payments. | The income of a parent's new partner is not relevant to the payment of child support, nor is a payor's new partner obliged to pay child support. The new partner will not inherit the child support obligation in the event the payor dies, and the recipient of support won't be able to pursue the new partner for continuing or supplemental payments. | ||
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For the purposes of calculating the base amount of child support a parent must pay — that is, the parent's basic obligation under the Child Support Guidelines, before special and/or extraordinary expenses — the court will only look at the parent's income. The income of the new partner is not taken into account. | For the purposes of calculating the base amount of child support a parent must pay — that is, the parent's basic obligation under the Child Support Guidelines, before special and/or extraordinary expenses — the court will only look at the parent's income. The income of the new partner is not taken into account. | ||
===Undue | ===Undue hardship claims=== | ||
Section 10 of the Child Support Guidelines allows parties to argue that the base amount of support set out in the Guidelines tables is too low or too high and would cause ''undue hardship'' if the table amount was paid. Payors will claim that the base amount is too high, while recipients will argue that it is too low. This exception to the Guidelines is discussed more thoroughly in the | Section 10 of the Child Support Guidelines allows parties to argue that the base amount of support set out in the Guidelines tables is too low or too high and would cause ''undue hardship'' if the table amount was paid. Payors will claim that the base amount is too high, while recipients will argue that it is too low. This exception to the Guidelines is discussed more thoroughly in page on [[Exceptions to the Child Support Guidelines]] in this chapter. | ||
If undue hardship is claimed, the court will look at the standard of living of each parent's ''household'', rather than the standard of living of each parent alone. This means that the court, in deciding whether there is undue hardship, will look at the total expenses and total income of each parent's household, including the income of each parent's new partner. This will not cause the new partner to be liable to pay support, it just means that his or her income will be added to the parent's income to see whether the usual table amount of support payable is unduly high or low. | If undue hardship is claimed, the court will look at the standard of living of each parent's ''household'', rather than the standard of living of each parent alone. This means that the court, in deciding whether there is undue hardship, will look at the total expenses and total income of each parent's household, including the income of each parent's new partner. This will not cause the new partner to be liable to pay support, it just means that his or her income will be added to the parent's income to see whether the usual table amount of support payable is unduly high or low. | ||
===Incomes in | ===Incomes in excess of $150,000=== | ||
The tables provided in the Child Support Guidelines set out the amount of support owing by payors who earn up to $150,000 per year. The Guidelines provide a mathematical formula for figuring out what parents earning more than $150,000 must pay, while payors earning less than $10,800 pay nothing. | The tables provided in the Child Support Guidelines set out the amount of support owing by payors who earn up to $150,000 per year. The Guidelines provide a mathematical formula for figuring out what parents earning more than $150,000 must pay, while payors earning less than $10,800 pay nothing. | ||
Section 4 of the Guidelines deals with parents who earn more than $150,000 each year. Under this section, the income (or lack of income) of a parent's new partner may be taken into account in deciding whether the formula gives a fair result. The calculation of support owing by parents with incomes in excess of $150,000 is discussed in more detail in the | Section 4 of the Guidelines deals with parents who earn more than $150,000 each year. Under this section, the income (or lack of income) of a parent's new partner may be taken into account in deciding whether the formula gives a fair result. The calculation of support owing by parents with incomes in excess of $150,000 is discussed in more detail in the page [[Exceptions to Child Support Guidelines]]. | ||
Section 4(b)(ii) of the Guidelines says that when considering the amount payable above the basic amount for a payor whose annual income is $150,000, the court should apply the formula but take into account: | Section 4(b)(ii) of the Guidelines says that when considering the amount payable above the basic amount for a payor whose annual income is $150,000, the court should apply the formula but take into account: | ||
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In other words, the income of a new partner can be taken into account under the general heading of "financial ability" of a spouse in determining whether the formula amount is fair. | In other words, the income of a new partner can be taken into account under the general heading of "financial ability" of a spouse in determining whether the formula amount is fair. | ||
===Special | ===Special expenses=== | ||
Section 7 of the Guidelines allows for sharing of the children's special and/or extraordinary expenses between the parents, as discussed above. In figuring out how much a parent should have to contribute to these expenses, the court is required to take into account, among other things "the reasonableness of the expense in relation to the means of the spouses and those of the child". | Section 7 of the Guidelines allows for sharing of the children's special and/or extraordinary expenses between the parents, as discussed above. In figuring out how much a parent should have to contribute to these expenses, the court is required to take into account, among other things "the reasonableness of the expense in relation to the means of the spouses and those of the child". | ||
A parent's new partner's income can be taken into consideration in assessing the "means of the spouses," which is exactly what the court did in the 2000 Supreme Court case of ''Baum v. Baum''. In that decision, the court held that ''means of the spouses'' should be interpreted broadly as including all of the means available to the paying parent, including the income of his or her new partner. | A parent's new partner's income can be taken into consideration in assessing the "means of the spouses," which is exactly what the court did in the 2000 Supreme Court case of ''[http://canlii.ca/t/1fm6b Baum v. Baum]'', 2000 BCSC 1835. In that decision, the court held that ''means of the spouses'' should be interpreted broadly as including all of the means available to the paying parent, including the income of his or her new partner. | ||
Again, the new partner will not be responsible to pay child support or a share of the children's special expenses as a result; only the payor's obligation will be affected by the new partner's income. | Again, the new partner will not be responsible to pay child support or a share of the children's special expenses as a result; only the payor's obligation will be affected by the new partner's income. | ||
===Death of the | ===Death of the payor=== | ||
A number of readers have asked whether they will have any responsibility to make child support payments if their partner, a parent or guardian under an obligation to pay child support, dies. The simple answer to that question is no, they will have no responsibility. The fact that they are in a relationship with a paying parent doesn't necessarily mean that they will have a duty to keep paying support if that parent dies. | A number of readers have asked whether they will have any responsibility to make child support payments if their partner, a parent or guardian under an obligation to pay child support, dies. The simple answer to that question is no, they will have no responsibility. The fact that they are in a relationship with a paying parent doesn't necessarily mean that they will have a duty to keep paying support if that parent dies. | ||
While that is a good general rule, and one you can probably rely on, it is possible that a claim could be made against the new partner as a ''stepparent'' of the child under the ''Family Law Act''. The act says that all parents, guardians and stepparents are required to support their children, but s. 147 says that stepparents who are obliged to pay child support must have contributed to the support of the child for at least of one year. In other words, a new partner who marries a paying parent may have an obligation if he or she has contributed to the support of the child. Again, while this is technically possible, orders against new partners following the death of the paying parent are extremely rare. | While that is a good general rule, and one you can probably rely on, it is possible that a claim could be made against the new partner as a ''stepparent'' of the child under the ''[[Family Law Act]]''. The act says that all parents, guardians and stepparents are required to support their children, but s. 147 says that stepparents who are obliged to pay child support must have contributed to the support of the child for at least of one year. In other words, a new partner who marries a paying parent may have an obligation if he or she has contributed to the support of the child. Again, while this is technically possible, orders against new partners following the death of the paying parent are extremely rare. | ||
==Agreemements and | ==Agreemements and orders for child support== | ||
===Orders for | ===Orders for child support=== | ||
An order for child support typically contains the following elements: | An order for child support typically contains the following elements: | ||
#a statement of the names and birthdates of the children for whom support will be paid | #a statement of the names and birthdates of the children for whom support will be paid, | ||
#a declaration of the payor's income | #a declaration of the payor's income, | ||
#an order as to the Guidelines amount payable | #an order as to the Guidelines amount payable, | ||
#an order with respect to the exchange of income information | #an order with respect to the exchange of income information, and | ||
#a statement of the date on which child support will no longer be payable. | #a statement of the date on which child support will no longer be payable. | ||
These elements look like this in a typical order made under the ''Divorce Act'': | These elements look like this in a typical order made under the ''[[Divorce Act]]'': | ||
<blockquote><tt>UPON the Court being advised that the children of the marriage are</tt></blockquote> | <blockquote><tt>UPON the Court being advised that the children of the marriage are</tt></blockquote> | ||
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<blockquote><tt>2. The Claimant shall provide to the Respondent a copy of her tax return on the first day of May 2014 and continuing on the first day of May for each and every year thereafter until such time as the children are no longer "children of the marriage", and the Claimant shall provide to the Respondent a copy of each Canada Revenue Agency Notice of Assessment or Notice of Reassessment within two weeks of her receipt of the same, continuing until such time as the children are no longer "children of the marriage".</tt></blockquote> | <blockquote><tt>2. The Claimant shall provide to the Respondent a copy of her tax return on the first day of May 2014 and continuing on the first day of May for each and every year thereafter until such time as the children are no longer "children of the marriage", and the Claimant shall provide to the Respondent a copy of each Canada Revenue Agency Notice of Assessment or Notice of Reassessment within two weeks of her receipt of the same, continuing until such time as the children are no longer "children of the marriage".</tt></blockquote> | ||
Under the ''Family Law Act'', the order would look like this: | Under the ''[[Family Law Act]]'', the order would look like this: | ||
<blockquote><tt>UPON the Court being advised that the children are</tt></blockquote> | <blockquote><tt>UPON the Court being advised that the children are</tt></blockquote> | ||
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When parents have ''shared custody'' or ''split custody'' of their children, the amount paid is dependant on both parties' incomes. The same is true where special expenses are being contributed to; the proportion of those expenses each party will pay depends on both of their incomes. In cases like these, the last clause would be changed to require both parents to exchange their income information on an annual basis, not just the payor, and the court would make a finding about both parents' incomes. | When parents have ''shared custody'' or ''split custody'' of their children, the amount paid is dependant on both parties' incomes. The same is true where special expenses are being contributed to; the proportion of those expenses each party will pay depends on both of their incomes. In cases like these, the last clause would be changed to require both parents to exchange their income information on an annual basis, not just the payor, and the court would make a finding about both parents' incomes. | ||
===Agreements for | ===Agreements for child support=== | ||
Separation agreements, like all family law agreements, have two types of statements. The ''recitals'' are statements that talk about the parties and their relationship that explain their background and why they signed their agreement. The ''operative clauses'' of an agreement are statements that say what each party has promised to do. The recitals to a separation agreement about child support would include statements like these: | Separation agreements, like all family law agreements, have two types of statements. The ''recitals'' are statements that talk about the parties and their relationship that explain their background and why they signed their agreement. The ''operative clauses'' of an agreement are statements that say what each party has promised to do. The recitals to a separation agreement about child support would include statements like these: | ||
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<blockquote><tt>16. Jane will give John a copy of her tax return on the first day of May 2014 and continuing on the first day of May of every year thereafter while Jesse and Sandra remain "children" as defined by the ''Family Law Act''. Jane will give John a copy of each Canada Revenue Agency Notice of Assessment or Notice of Reassessment she received within two weeks of receiving it for so long as the children are still "children".</tt></blockquote> | <blockquote><tt>16. Jane will give John a copy of her tax return on the first day of May 2014 and continuing on the first day of May of every year thereafter while Jesse and Sandra remain "children" as defined by the ''Family Law Act''. Jane will give John a copy of each Canada Revenue Agency Notice of Assessment or Notice of Reassessment she received within two weeks of receiving it for so long as the children are still "children".</tt></blockquote> | ||
==Child | ==Child support tables and calculators== | ||
The simplified Child Support Guidelines Tables for British Columbia are available from the website of the federal Department of Justice at: | The simplified Child Support Guidelines Tables for British Columbia are available from the website of the federal Department of Justice at: | ||
<blockquote>laws-lois.justice.gc.ca/eng/regulations/SOR-97-175/page-16.html#h-15</blockquote> | <blockquote>http://laws-lois.justice.gc.ca/eng/regulations/SOR-97-175/page-16.html#h-15</blockquote> | ||
The federal government has published an online child support calculator, available at: | The federal government has published an online child support calculator, available at: | ||
<blockquote>www.justice.gc.ca/eng/pi/fcy-fea/lib-bib/tool-util/apps/look-rech/index.asp</blockquote> | <blockquote>http://www.justice.gc.ca/eng/pi/fcy-fea/lib-bib/tool-util/apps/look-rech/index.asp</blockquote> | ||
The provincial government also operates the BC Child Support Info Line which offers free information about child support and the child support tables. Contact the Info Line at: | The provincial government also operates the BC Child Support Info Line which offers free information about child support and the child support tables. Contact the Info Line at: | ||
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<blockquote>Lower Mainland: 604-660-2192<br> | <blockquote>Lower Mainland: 604-660-2192<br> | ||
Outside the Lower Mainland: 888-216-2211</blockquote> | Outside the Lower Mainland: 888-216-2211</blockquote> | ||
<!---HIDDEN | |||
==Further Reading in this Chapter== | ==Further Reading in this Chapter== | ||
* <span style="color: red;">bulleted list of other pages in this chapter, linked</span> | * <span style="color: red;">bulleted list of other pages in this chapter, linked</span> | ||
END HIDDEN---> | |||
==Page | ==Page resources and links== | ||
===Legislation=== | ===Legislation=== | ||
* | * ''[[Family Law Act]]'' | ||
* ''[[Divorce Act]]'' | |||
* ’'[http://canlii.ca/t/80mh Federal Child Support Guidelines]’’ | |||
===Links=== | ===Links=== | ||
* | * [http://laws-lois.justice.gc.ca/eng/regulations/SOR-97-175/page-16.html#h-15 Child Support Guidelines Tables for British Columbia] | ||
* | * [http://www.justice.gc.ca/eng/pi/fcy-fea/lib-bib/tool-util/apps/look-rech/index.asp Online Child Support Calculator] | ||
* [http://www.clicklaw.bc.ca/resource/1175 BC Ministry of Justice: FMEP Child Support Calculator] | |||
* [http://www.clicklaw.bc.ca/resource/1235 Canadian Bar Association BC Branch: Script on child support] | |||
* [http://www.clicklaw.bc.ca/resource/1666 Legal Services Society Family Law Website: What the child support guidelines are and how they work] | |||
* [http://www.clicklaw.bc.ca/resource/1618 Legal Services Society Family Law Website: Child support] | |||
* [http://www.clicklaw.bc.ca/resource/1618 Legal Services Society's Family Law Website: Child support] | |||
{{JP Boyd on Family Law Navbox|type=chapters}} | {{JP Boyd on Family Law Navbox|type=chapters}} | ||
