Exceptions to the Child Support Guidelines
The court has a limited ability to make orders for child support in amounts different than what would normally be required by the Child Support Guidelines tables.
The same rules apply to parents and guardians who are making agreements about child support. Without one of the Guidelines exceptions, the court is unlikely to uphold an agreement that provides for a child support payment that significantly departs from the Guidelines amount.
This section talks about the most common exceptions to the Guidelines tables:
- where the payor earns more than $150,000 per year,
- where the parents have split or shared custody of the children,
- where a minor child has become financially independent,
- where undue hardship is claimed, and
- where other arrangements have been made for the direct or indirect benefit of the children.
- 1 Payors with incomes higher than $150,000
- 2 Split custody and shared custody
- 3 Independent minor children
- 4 Undue hardship
- 5 Other Arrangements for the Children's Direct or Indirect Benefit
- 6 Resources and links
Payors with incomes higher than $150,000
The tables set out in the Child Support Guidelines only go up to an annual gross income of $150,000. For incomes over that amount, the Guidelines provide formulas to calculate the amount of child support payable.
However, for payors with very high incomes, these formulas can result in extremely large child support payments, to the point where the payments might begin to exceed what could reasonably be necessary to meet a child's expenses. As a result, section 4 of the Guidelines gives the court the flexibility to make an order for child support in an amount different than that generated by the formulas:
Where the income of the spouse against whom a child support order is sought is over $150,000, the amount of a child support order is
(a) the amount determined under section 3; or
(b) if the court considers that amount to be inappropriate,
(i) in respect of the first $150,000 of the spouse's income, the amount set out in the applicable table for the number of children under the age of majority to whom the order relates;
(ii) in respect of the balance of the spouse's income, the amount that the court considers appropriate, having regard to the condition, means, needs and other circumstances of the children who are entitled to support and the financial ability of each spouse to contribute to the support of the children; and
(iii) the amount, if any, determined under section 7.
Before departing from the Guidelines formulas under this section, the court must first determine that the formula amount would be inappropriate. If the court makes this finding, it then looks at the circumstances of the individual case and the factors set out in section 4(b)(ii). While there is a very strong presumption that the Guidelines formulas are appropriate, this presumption can still be challenged, and the court will usually consider the following factors in making its decision:
- the financial circumstances of the parties and the actual circumstances of their children,
- the actual means and needs of the parties and the children,
- the pre-separation spending patterns and standard of living and post-separation standard of living in both parents’ homes, and
- whether the sheer magnitude of the child support payments would effectively work as alternative payment of spousal support or wealth transfer beyond the reasonable purpose of a child support order.
You should bear in mind that there must be clear and compelling evidence that the formula amounts would be inappropriate. There is a very strong presumption in favour of the Guidelines tables and formulas, and sufficient evidence must be presented to the effect that the support payment would have a result beyond the purpose of child support before the courts will make an order differing from what the Guidelines provide. Each case is assessed individually, in the context of each family’s particular financial circumstances and the children’s needs.
The fundamental purpose of child support is to help cover some of the expenses paid by the parent or guardian who has the children most of the time, on the assumption that the person who has the children most of the time will bear a greater share of the direct and indirect costs associated with raising the children. Where parents have split custody (each parent has the primary residence of one or more children) or shared custody (the parents share the children's time equally or near-equally), these costs are presumed to be shared more equally. As a result, the Guidelines make an exception to the normal rules.
Section 8 of the Guidelines applies to split custody situations. Section 8 states that:
8. Where each spouse has custody of one or more children, the amount of a child support order is the difference between the amount that each spouse would otherwise pay if a child support order were sought against each of the spouses.
Where the primary residence of the children is split between the parents or guardians, the amount of the child support payable is the difference between what each parent would have to pay the other for the support of the children in their care.
- Say that parent A's obligation to parent B for the children in B's care is $1,000 per month, and that parent B's obligation to parent A for the children in A's care is $250 per month. A would pay $750 per month in child support, the difference between A's obligation and B's obligation, and B would pay nothing.
Paying the difference between the two amounts is called paying the set-off amount of child support.
Section 9 of the Guidelines applies to shared custody situations. Section 9 states that:
9. Where a spouse exercises a right of access to, or has physical custody of, a child for not less than 40 per cent of the time over the course of a year, the amount of the child support order must be determined by taking into account
(a) the amounts set out in the applicable tables for each of the spouses;
(b) the increased costs of shared custody arrangements; and
(c) the conditions, means, needs and other circumstances of each spouse and of any child for whom support is sought.
In order to fall within this exception to the Guidelines, the payor must have the children for 40% or more of the time. The two big issues here are how each party's time with the children is counted, and how the amount of child support payable should be calculated once the 40% threshold is reached.
Problems about counting time involve the rules that will be applied in the calculation, such as deciding which person should get credit for the time the children are in school or whether you should count the time when the children are sleeping. Section 9 is one of the most difficult sections of the Child Support Guidelines as a result. A few broad rules have emerged from the case law:
- If the parents have the children for an exactly equal amount of time, the 40% requirement has been met.
- Holiday periods in which the children spend an unusual amount of time with one parent or the other, shouldn't be used to figure out the average amount of time spent with each parent; rather, the court will look at the average amount of time spent in a typical one- or two-week period.
- The time the children are in school or in daycare will be credited to the parent who has a right to parenting time of the children during that time, on the principle that this person is the parent who would have to care for children on a professional development day or attend the school or daycare in the event of an illness or an emergency.
- If a parent's time with the children is specified in an agreement or a court order as concluding at the start or end of the school day, that's when that parent's time concludes, and the other parent’s time starts, and credit will be divided accordingly.
In the case of C.M.B. v. B.D.G., 2014 BCSC 780, the court recognized that there is no universal formula for counting time that children spend with each parent when the court is required to determine whether parents share parenting for the purpose of child support. Of course, as in most issues involving children, each case will be decided on its own unique circumstances.
Once the 40% threshold issue has been dealt with, the court must then decide how much child support ought to be paid, based on section 9 of the Guidelines. The intention is to reduce any difference in the living standards between the two homes in which the children live after their parents’ separation.
The analysis starts by determining each parent's income, finding each parent's support obligation amount under the applicable Guidelines tables (section 9(a)), then offsetting the two numbers to come up with a figure that one parent (the higher earning one most likely) owes the other. If Byron would pay $940 per month under the Guidelines, and Helen would pay $1,040 per month under the Guidelines, then the set-off amount is $200.
The court will then look at the increased costs associated with a shared parenting arrangement (section 9(b)).
In the leading case on section 9, Contino v. Leonelli-Contino, 2005 SCC 63, the Supreme Court of Canada addressed which factors should be examined under section 9(b). A court will examine the budgets and actual child-related expenditures of both parents. It will then determine whether shared custody has resulted in increased costs globally. These increased expenses should then be apportioned between the parents in accordance with their respective incomes.
Finally, under section 9(c), a court will look at the evidence regarding the "conditions, means, needs, and other circumstances" of each parent and any child. Under section 9(c), the court has broad discretion to analyze the resources and needs of both parents, and the children. So, for example, one parent’s new partner’s income may be taken into account as part of an overall analysis of that parent’s household income, whether that parent is the payor or the recipient of child support.
Although the court has developed a number of different formulas to calculate the amount of child support payable in shared parenting situations, in general the set-off calculation will be used. This approach was recently confirmed by the British Columbia Court of Appeal in the case of B.P.E. v. A.E., 2016 BCCA 335, which gave deference to the set-off approach in a shared custody situation.
Income Tax and Child Tax Benefits
In order to ensure that both parents can share in claiming children as dependents on their tax returns and share in child tax benefits, in "split custody" or "shared custody" situations, an agreement or court order should specify what child support is to be paid by each parent to the other. If the agreement or court order only says that one parent will pay the set-off amount, CRA will take the position that only the receiving parent is entitled to claim the children as dependents and receive tax child benefits. CRA may request a copy of the agreement or court order to prove that the children are in a shared parenting situation.
Independent minor children
Eligibility for child support under both the Family Law Act and the Divorce Act is restricted to children under the age of 19, the age of majority in British Columbia, and to children who are 19 and older and are unable to live independently of their parents. Children are expected, at some point, to live on their own and become self-sufficient. This may occur before a child turns 19, and a parent may be relieved of the obligation to provide support to an independent child in such circumstances.
If a payor can prove that a minor child has voluntarily withdrawn from parental control and is living an adult, financially independent life, the child may not be entitled to benefit from child support. Children have been found to have withdrawn from their parents' care and control when:
- a child lives with a boyfriend or girlfriend who provides for or helps to provide for the child's needs,
- a child has moved out from their parents' home and refuses to return, or
- a child lives on their own, maintains a job, and pays their own bills without relying on money from their parents.
Section 147(1) of the Family Law Act say that:
Each parent and guardian of a child has a duty to provide support for the child, unless the child
(a) is a spouse, or
(b) is under 19 years of age and has voluntarily withdrawn from his or her parents' or guardians' charge, except if the child withdrew because of family violence or because the child's circumstances were, considered objectively, intolerable.
A person can be a spouse under the Family Law Act if they:
- are married,
- have lived in a marriage-like relationship with another person for a continuous period of at least two years, or
- have lived in a marriage-like relationship for a shorter period of time if the couple has had a child together.
Under section 10 of the Child Support Guidelines, the court can make an award of child support that is different (usually less) than would be required by the Guidelines tables where a person would suffer undue hardship if the Guidelines table amount of child support were paid.
Merely claiming "hardship" will not be sufficient to justify a child support order that is lower than the Guidelines table amount. The hardship caused by payment of the table amount must be an undue hardship. According to Van Gool v. Van Gool , 1998 CanLII 5650 (BCCA), a case of our Court of Appeal, undue means "exceptional, excessive or disproportionate." In the 1999 Supreme Court case of Chong v. Chong,1999 CanLII 6246 (BCSC), the court held that establishing undue hardship requires a "high threshold" of hardship, and that problems like a lower standard of living or financial obligations for a new family are not sufficient.
Section 10 of the Guidelines provides a non-exhaustive list of circumstances that may cause undue hardship:
(1) On either spouse's application, a court may award an amount of child support that is different from the amount determined under any of sections 3 to 5, 8 or 9 if the court finds that the spouse making the request, or a child in respect of whom the request is made, would otherwise suffer undue hardship.
(2) Circumstances that may cause a spouse or child to suffer undue hardship include the following:
(a) the spouse has responsibility for an unusually high level of debts reasonably incurred to support the spouses and their children prior to the separation or to earn a living;
(b) the spouse has unusually high expenses in relation to exercising access to a child;
(c) the spouse has a legal duty under a judgment, order or written separation agreement to support any person;
(d) the spouse has a legal duty to support a child, other than a child of the marriage, who is
(i) under the age of majority, or
(ii) the age of majority or over but is unable, by reason of illness, disability or other cause, to obtain the necessaries of life; and
(e) the spouse has a legal duty to support any person who is unable to obtain the necessaries of life due to an illness or disability...
Note that this list is not exhaustive, meaning that the court may take other factors, in addition to those in the list, into account in deciding applications under section 10. The test to prove that an order under the Guidelines would cause undue hardship involves two steps:
- under section 10(3), the court must find that the household standard of living of the parent claiming undue hardship, calculated using the formulas described in Schedule II of the Guidelines, is lower than that of the other parent, and
- the court must find that an award under the Guidelines would in fact cause undue hardship to the payor or the recipient under section 10(1)
If you cannot prove a lower standard of living under step 1 above, do not bother going to step 2 because the hardship claim has already been lost.
If both these steps have been met, the court will then determine what a reasonable child support order would be in light of the children's needs and the means of the parents. Note that the standards of living being compared are the standards of the two households. This includes all sources of income a household has, including income from the parents' new partners, if any.
Other Arrangements for the Children's Direct or Indirect Benefit
Section 11(1)(b) of the Divorce Act requires a judge to be satisfied that reasonable arrangements have been made for the support of the children of the marriage before signing off on the divorce. This usually requires that the Child Support Guideline amount of child support be paid.
However, Section 15.1(5) of the Divorce Act allows the court to order a different amount of child support or accept an agreement between the parents and give them the divorce, but this is unusual, and the parents must show that they made reasonable financial arrangements for the children. An example would be where the parents decide that one parent takes less than half the value of the house and gives the house to the other parent who continues to live in the house with the children. This is unusual, and will probably require the help of a lawyer.
- Dial-A-Law Script "Child Support"
- Legal Services Society's Family Law website's information page "Child & spousal support"
- Under "Child support", see "What are the child support guidelines and how do they work?"
|This information applies to British Columbia, Canada. Last reviewed for legal accuracy by William Murphy-Dyson and Inga Phillips, June 14, 2019.|
|JP Boyd on Family Law © John-Paul Boyd and Courthouse Libraries BC is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 2.5 Canada Licence.|
Normally referred to as the "Supreme Court of British Columbia," this court hears most court proceedings in this province. The Supreme Court is a court of inherent jurisdiction and is subject to no limits on the sorts of claims it can hear or on the sorts of orders it can make. Decisions of the Provincial Court are appealed to the Supreme Court; decisions of the Supreme Court are appealed to the Court of Appeal. See "Court of Appeal," "jurisdiction," "Provincial Court," and "Supreme Court of Canada."
A court established and staffed by the provincial government, which includes Small Claims Court, Youth Court, and Family Court. The Provincial Court is the lowest level of court in British Columbia and is restricted in the sorts of matters it can deal with. It is, however, the most accessible of the two trial courts and no fees are charged to begin or defend a family court proceeding. The Family Court of the Provincial Court cannot deal with the division of family property or matters under the Divorce Act. See "judge" and "jurisdiction."
Money paid by one parent or guardian to another parent or guardian as a contribution toward the cost of a child's living and other expenses.
Short for the Child Support Guidelines, a regulation to the federal Divorce Act, adopted by each province and territory except Quebec, that sets the amount of child support a parent or guardian must pay based on the person's income and the number of children involved.
A term used by the Child Support Guidelines to describe circumstances in which a child's time is shared equally or almost-equally between their parents or guardians, often resulting in an amount of support that is different than the table amount. See "child support," "Child Support Guidelines," and "table amount."
A person who is younger than the legal age of majority, 19 in British Columbia. Not to be confused with "miner." See "age of majority."
A term used by the Child Support Guidelines to describe circumstances when payment of the table amount of child support would cause financial difficulty for the payor or the recipient, potentially justifying an award of support in an amount different than the table amount. See "child support," "Child Support Guidelines," and "table amount."
A regulation to the federal Divorce Act, adopted by every province and territory except Quebec, that sets the amount of child support a parent or guardian must pay, usually based on the person's income and the number of children involved.
A person who is younger than the legal age of majority, 19 in British Columbia. See "age of majority."
A mandatory direction of the court, binding and enforceable upon the parties to a court proceeding. An "interim order" is a temporary order made following the hearing of an interim application. A "final order" is a permanent order, made following the trial of the court proceeding or the parties' settlement, following which the only recourse open to a dissatisfied party is to appeal. See "appeal," "consent order," "decision," and "declaration."
Under the Divorce Act, either of two people who are married to one another, whether of the same or opposite genders. Under the Family Law Act, married spouses, unmarried parties who have lived together in a marriage-like relationship for at least two years, and, for all purposes of the act other than the division of property or debt, unmarried parties who have lived together for less than two years but have had a child together. See "marriage" and "marriage-like relationship."
The age at which a child becomes a legal adult with the full capacity to act on their own, including the capacity to sue and be sued. In British Columbia, the age of majority is 19. The age of majority has nothing to do with being entitled to vote or buy alcohol, although federal and provincial laws sometimes link those privileges with the age at which one attains majority. See "disability" and "infant."
A conclusion made by a judge which decides a point of law or a disputed fact.
In law, a judge's conclusions after hearing argument and considering the evidence presented at a trial or an application; a judgment; the judge's reasons. A judge's written or oral decision will include the judge's conclusions about the relief or remedies claimed as well as their findings of fact and conclusions of law. A written decision is called the judge’s "reasons for judgment." See "common law," "conclusions of law," and "findings of fact."
A payment made by one spouse, the payor, to the other spouse, the recipient, to help with their day-to-day living expenses or to compensate the recipient for the financial choices the spouses made during the relationship.
In property law, the act of an owner of a thing giving ownership of that thing to another person, in exchange for money or other property in the case of a sale, or in exchange for other rights in the case of a family law agreement. See "family law agreements," "ownership," and "sale."
Facts or proof of facts presented to a judge at a hearing or trial. Evidence can be given through the oral testimony of witnesses, in writing as business records and other documents, or in the form of physical objects. Evidence must be admissible according to the rules of court and the rules of evidence. See "circumstantial evidence," "hearsay," and "testimony."
In family law, an antiquated term used by the Divorce Act to describe the right to possess a child and make parenting decisions concerning the child's health, welfare, and upbringing. See "access."
In family law, the natural or adoptive father or mother of a child; may also include stepparents, depending on the circumstances and the applicable legislation; may include the donors of eggs or sperm and surrogate mothers, depending on the circumstances and the terms of any assisted reproduction agreement. See "adoptive parent," "natural parent," and "stepparent."
A term used by the Child Support Guidelines to describe circumstances where there are at least two children, and each parent or guardian has at least one child living with them most of the time. This results in an amount of support that is different than the table amount. See "child support," "Child Support Guidelines," and "table amount."
The geographic place where a person permanently lives. This is different from a person's "domicile" in that a person's residence is more fixed and less changeable in nature. A person's residence can also have an impact on a court's authority to hear and decide a legal action. See "domicile" and "jurisdiction."
A duty, whether contractual, moral, or legal in origin, to do or not do something. See "duty."
Under the Divorce Act, the schedule of a parent's time with their children under an order or agreement. Access usually refers to the schedule of the parent with the least amount of time with the child. See "custody."
A calculation of the allowable legal expenses of a party to a court proceeding, as determined by the Supreme Court Family Rules. The party who is most successful in a court proceeding is usually awarded their "costs" of the proceeding. See "account, "bill of costs," "certificate of costs," and "lawyer's fees."
In law, a person named as an applicant, claimant, respondent, or third party in a court proceeding; someone asserting a claim in a court proceeding or against whom a claim has been brought. See "action" and "litigant."
The law as established and developed by the decisions made in each court proceeding. See "common law."
A term under the Family Law Act which describes the time a guardian has with a child and during which is responsible for the day to day care of the child. See "guardian."
In family law, the decision of one or both parties to terminate a married or unmarried relationship; the act of one person leaving the family home to live somewhere else with the intention of terminating the relationship. There is no such thing as a "legal separation." In general, one separates by simply moving out; however, it is possible to be separated but still live under the same roof. See "divorce, grounds of."
The highest level of court in Canada. This court hears appeals from the decisions of the Federal Court of Appeal and the provincial courts of appeal, including the Court of Appeal for British Columbia. There is no court to appeal to beyond this court. See "Court of Appeal" and "Supreme Court."
In law, a lawyer's bill to their client or a statement; one person's recollection of events.
The highest level of court in this province, having the jurisdiction to review decisions of the Supreme Court, all provincial lower courts, and certain tribunals. See "appeal."
The assertion of a legal right to an order or to a thing; the remedy or relief sought by a party to a court proceeding.
In family law, the quality of an unmarried couple's relationship that demonstrates their commitment to each other, their perception of themselves as a couple, and their willingness to sacrifice individual advantages for the advantage of themselves as a couple; a legal requirement for a couple to be considered spouses without marrying. See "cohabitation," "marriage," and "spouse."
A mandatory direction of an arbitrator, binding and enforceable upon the parties to an arbitration proceeding, made following the hearing of the arbitration trial proceeding or the parties' settlement, following which the only recourse open to a dissatisfied party is to challenge or appeal the award in court. See "appeal," "arbitration," and "family law arbitrator."
The amount of child support payable under the Child Support Guidelines tables. See "Child Support Guidelines."
A request to the court that it make a specific order, usually on an interim or temporary basis, also called a "chambers application" or a "motion." See also "interim application" and "relief."
An obligation at law to do or not do a thing, whether by legislation, the common law, or an order of the court. For example, the Criminal Code imposes a legal duty on parents that requires them to provide the necessities of life to their children until they turn 16. See "duty."
A judge's conclusions after hearing argument and considering the evidence presented at a trial or an application; a decision, the judge's reasons. A judge's written or oral decision will include the judge's conclusions about the relief or remedies claimed as well as their findings of fact and conclusions of law. A written decision is called the judge’s "reasons for judgment." See "common law," "conclusions of law," "findings of fact," and "final judgment."
A contract intended to resolve all or some of the legal issues arising from the breakdown of a relationship and intended to guide the parties in their dealings with one another thereafter. A typical separation agreement is signed following a settlement reached through negotiations, and deals with issues including guardianship, parenting arrangements, contact, support, the division of property, and the division of debt. See "family law agreements."
In law, a legal incapacity to do certain things, like enter into a contract or start a court proceeding. Legal disabilities include insanity and being under the age of majority. See "age of majority."
A person appointed by the federal or provincial government to manage and decide court proceedings in an impartial manner, independent of influence by the parties, the government, or agents of the government. The decisions of a judge are binding upon the parties to the proceeding, subject to appeal.
The legal termination of a valid marriage by an order of a judge; the ending of a marital relationship and the conjugal obligations of each spouse to the other. See "conjugal rights," "marriage," and "marriage, validity of."
A person licensed to practice law in a particular jurisdiction. See "barrister and solicitor."