Child Support
If you were legally married you are subject to the federal Divorce Act. If you weren’t legally married, you are subject to provincial or territorial law. Both the Divorce Act and provincial laws are very concerned with the welfare of children and the courts will not approve a separation agreement or a divorce until there is adequate support for the children. Typically that support will be shared between the parents.
The Federal Child Support Guidelines describe which parent is responsible for how much support for children after a divorce. The guidelines are designed to divide support fairly between the parents and consider various factors such as:
a. The number of children
b. Annual income of the paying parent
c. Custody arrangements (sole, split, joint)
The guidelines do not have to be followed if the parents can show the court that their own arrangement is actually more beneficial for the children.
If there are special expenses relating to child care such as extra education expenses those will typically be shared by the parents on a relative income basis.
Since 1997 child support payments are included in the income of the paying spouse and received tax-free by the spouse who has custody. Therefore the parent who is using the child support payments to support their children will receive any child support tax free.
A lawyer specializing in this area should always be consulted.
The Ontario Government site has good information regarding child support, please visit:
Government of Ontario - Arranging Child Support (Click)
Please contact us to find out more!
Barbara Reid's Wealth Management Team
Your personal Wealth Advisor in Hamilton, Ontario
