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Wednesday, October 28, 2015

Support and related income considerations

When support (either child or spousal) is an issue in a family law case, there are a number of questions which need to be addressed before the actual support calculation is made.  

For example, in the case of child support, is a young person over the age of 18 still eligible to receive child support?  If so, in what form is that support to be paid? To whom? 

On the issue of spousal support, is the potential support recipient making best efforts to contribute to his or her own support based on their current ability to do so?


The income of the potential payor is a key question to address in any consideration of support obligations.  “Income for tax purposes" is not necessarily “income for support purposes” in family law.  In other words, simply because Canada Revenue Agency accepts a potential payor’s representations of his or her income for tax purposes does not mean that a family law Judge will do the same. 



Family law spreads a much wider sweep over a potential payor’s income sources to determine the true extent of his or her ability to pay support.  

The Child Support Guidelines, which technically apply to the calculation of child support but have now been wildly accepted as applying to spousal support calculations as well, permit the inclusion in income for support purposes of a wide variety of income sources.  The intent of the legislation is to ensure that financial dependants receive support based on all sources of the payor's actual income but also on sources which are available to the payor, even if he or she chooses not to tap into them. 

By way of one example only, income earned by a business which is not paid out to a shareholder but could be is vulnerable to being included in his or her income for support purposes.  Personal expenses run through the business are also vulnerable to being added back to the payor’s income for support purposes.

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