What are the changes I've heard regarding child
support laws?
There are two changes which have been
made to child support laws in Canada:
- The Income Tax laws have
been changed so that child support payments made
pursuant to a court order dated after May 1, 1997 or pursuant
to a separation
agreement signed after May 1, 1998 do not have to be declared as
income on the income tax return of the person receiving the
payment and
cannot be deducted
on the income tax return of the person making the payment.
- There are now child
support guidelines setting out the amount of child support to be
paid based on the income of the person making the payment
and the number
of children that are being supported.
To view the tables of child support amounts, click on the link below which
applies to the gross annual income before deductions of the person who will
pay the support.
The amount of child support (assuming there are no special circumstances) that
is payable is the amount opposite the yearly income amount on the left and
below the number at the top of the table representing the number of children
for whom
support is to be paid.
CAUTION: ALWAYS
CONSULT A LAWYER OR ACCOUNTANT BEFORE AGREEING TO CHANGE YOUR
CHILD SUPPORT ORDER OR AGREEMENT.
PERSONS PAYING SUPPORT: The
amounts set out in the tables are not tax deductible. Even though
the amount in the table is lower than the
amount that you are required to pay, it may actually
end up being higher because it is not tax deductible. IF YOU CAN'T CLAIM A
TAX DEDUCTION FOR THE PAYMENT, YOU MAY BE PAYING THE
EQUIVALENT OF AS MUCH AS TWO
TIMES THE AMOUNT SET OUT IN THE TABLE, DEPENDING ON YOUR INCOME.
PERSONS RECEIVING
SUPPORT: THE AMOUNTS SET OUT IN THE TABLE MAY ACTUALLY TURN OUT TO
BE THE EQUIVALENT OF A MUCH HIGHER AMOUNT BEING PAID UNDER AN OLD ORDER, DEPENDING
ON YOUR INCOME.
$6,700.00 –
$17,000.00
$17,100.00 – $27,000.00
$27,100.00 – $35,000.00
$35,100.00 – $43,000.00
$43,100.00 – $51,000.00
$51,000.00 – $60,000.00
$60,100.00 – $150,000.00
Do the guidelines always apply?
The guidelines now apply to all child support orders made by a court in Ontario.
However, a person may be required to pay more or less that the amount set out
in the tables if there are special circumstances, for example where the custodial
parent has child care expenses or where the non-custodial parent has unusually
high debts or has other support obligations, such as other support payments.
Does this mean that I don't have to claim the child support that I have been
receiving when I file my income tax return?
No. The new income tax rules only apply to orders
or agreements made after May 1, 1997. Any payments made pursuant to an order
or agreement dated before April
30, 1997 are still taxable income, regardless of when the payment is made
or received, unless both parents sign an agreement and file it with Revenue
Canada.
CAUTION: CONSULT A LAWYER OR ACCOUNTANT
BEFORE SIGNING ANY AGREEMENT THAT AFFECTS
YOUR RIGHTS OR OBLIGATIONS.
My spouse won't
agree to change our current order or agreement regarding child support
so that I don't have to declare the support
as income. What can I do?
My spouse won't agree to change the child support to the amount set out in the
tables. What can I do?
The changes to the child support laws probably give you the right to have your
order or agreement changed.
Why does my friend pay so much less than I do in child support?
Child support orders have been based primarily on the income of the person paying
and the number of children being supported. However, there has been a trend over
the last ten years to make higher orders for child support, so the older an order
is, the more likely that it will be lower than an order made recently under similar
circumstances.
Why does the government do so much to collect child support but nothing to enforce
access?
We can't answer this one other than to suggest that you complain to your MP.
There was a senate committee set up to examine problems with the current system
as it relates to custody and support orders, but nothing has been done yet.
Will my child support payments automatically be collected by the Family Responsibility
Office?
All recent court orders for child support must be enforced by the Family Responsibility
Office unless certain steps are taken to have the order withdrawn from the Family
Responsibility Office.
I changed jobs and now my income is less than it was when I signed the separation
agreement (or when the child support order was made). What can I do?
Where a separation agreement provides for the payment of child support and the
circumstances of the person paying support change, the payor is entitled to apply
to the court to have the amount of support reduced. Whether the amount of support
will be reduced or not depends on the amount being paid, the number of children,
the income of the custodial parent, the income of the payor both at the time
that the agreement was signed (or the order was made) and at the present time
and the amount that the guidelines state should be paid.
CAUTION
PERSONS PAYING SUPPORT: THE AMOUNTS SET OUT
IN THE TABLES ARE NOT TAX DEDUCTIBLE. EVEN THOUGH THE AMOUNT
IN THE TABLE IS LOWER THAN THE AMOUNT YOU ARE REQUIRED TO
PAY, IT MAY ACTUALLY BE HIGHER BECAUSE IT IS NOT TAX DEDUCTIBLE. IF YOU CAN'T
CLAIM A TAX DEDUCTION
FOR THE PAYMENT, YOU MAY BE PAYING THE EQUIVALENT OF AS MUCH
AS TWO TIMES THE AMOUNT SET OUT IN THE TABLE, DEPENDING ON YOUR INCOME.
PERSONS RECEIVING SUPPORT: THE AMOUNT SET
OUT IN THE TABLE MAY BE LESS THAN WHAT YOU ARE RECEIVING NOW,
DEPENDING
ON YOUR INCOME.EQUIVALENT OF
AN OLD ORDER FOR AS MUCH AS 30%. It is
important to note that if your support order was being enforced
by the Family Support Plan before you changed jobs or lost
your job, you must take steps to
have your child support obligation varied. Otherwise, you
may find that 50% of your take home pay from your new job
is being garnished to pay the payments that
you missed while you were unemployed or that you have not
paid due to your reduced income. |
