The federal and provincial laws require that child support be paid in accordance with published “Child Support Guidelines.” The “Tables” or the “Guidelines” are based on the support payor’s gross yearly income and the number of children for whom support is payable. There is a chart or a table which determines the presumptive amount of child support which should be paid. The legislation also provides for additional support for “extraordinary” or special expenses incurred on behalf of a child. Child support is required by law from a biological parent or from a person who has consistently acted as a parent toward the child or children.
Financial disclosure is absolutely mandatory pursuant to the Guidelines and this requirement is strictly enforced by the Court. Financial disclosure includes the following:
Non-arms’ length payments may be clawed back into net income for support purposes. The onus is on the payor to establish that the payment was necessary to earn the self employment income and was reasonable in the circumstances. Generally, self-employed persons are entitled to deduct expenses allowed under The Income Tax Act if such expenses were primarily incurred to gain or produce income. The personal component of these expenses will be disallowed for Guideline and support purposes. Alternatively, the Court can impute any unreasonably deducted expenses back into the self-employed person’s income.
Please Note: This information is not intended to contain advice specific to your situation. There are no cookie cutter solutions. After all, you are reading this information on the internet. Your situation is special and unique and you must be guided by specific individual advice from your Lawyer, Certified Financial Planner or Accountant.
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