Child Support in Ontario: How It’s Determined?
What Is Child Support?
One of the most important issues that arise when it comes to a separation is child support. Child support matters can be complicated and involves various guidelines and calculations. Child Support is an ongoing, periodic payment that is made by a parent for the benefit of a child. Child support is put in place to make sure that the financial needs of the children are met.
Who Pays Child Support?
In Ontario, child support is usually paid by the parent who does not have primary custody of the child, which is often referred to as the non-custodial parent. The obligation to pay child support is rooted in the principle that both parents are responsible for the financial well being of their child, regardless of the living arrangements. The amount of child support is calculated using the Ontario Child Support Guidelines. The Ontario Child Support Guidelines look at the paying parent’s income, and the number of children being supported.
Parents who share custody or have an equal parenting arrangement, child support may be required to make sure that the child’s needs are met. Under a shared parenting arrangement, where each parent has the child for at least 40% of the time, the Ontario Child Support Guidelines still apply, however the amount may be adjusted based on both parent’s incomes and the time the child spends with each parent. This is calculated by determining the amount each parent would pay if the child lived with the other parent, primarily. Then, a “Set-off” method is employed, where the lower amount is subtracted from the higher amount to determine the final child support payment.
Duration of Child Support
Child support payments can continue even if the child is above the age of 18 years old as long as the child is dependent on the parents, is under the parental control of the parents or is attending university.
Types of Child Support
- The Table Amount for Child Support
The table amount for child support covers the costs of raising a child and includes food, clothing, and shelter. The table amount of income is based upon your gross income. For individuals who are employees this is simple to determine. This can be determined by looking at line 150 on the tax return titled, “total income”.
Self-Employed
However, if the individual is self-employed or owns a business determining annual income becomes complex and tricky. For instance, Luke is self-employed as a contractor who renovates basements. Luke’s income fluctuates monthly, and on a yearly basis. The court can state that it would be unfair to use Luke’s current income. In this circumstance, the court according to section 17(1) of the Federal Child Support Guidelines can take the average of the past 3 year’s income and determine the amount of child support payments that need to be paid.
However, if the individual who is paying child support is a shareholder, director, or officer in a company section 18(1) of the Federal Child Support Guidelines states that the court can determine the spouse’s annual income to include “all or part of the pre-tax income of the corporation or an amount equal to the services that the spouse provides to the corporation.”
Imputed Income & Child Support
The court can also impute someone’s income. To impute an individuals’ income, the court looks at if the spouse is intentionally under-employed or unemployed. For instance, if Luke is an employee and there is a pattern that he would work overtime in the past, but now after being separated from his spouse Luke abruptly stopped taking overtime shifts. This can lead to imputation of income. Imputing income must be tied rationally to the evidence, and the court cannot arbitrarily select an amount to impute one’s income. However, if the court determines that the under employment or unemployment is due to the needs of a child, reasonable education, or the health needs of the party then the court can deny the imputation of income.
Key Factors the Court Considers in Child Support Calculations
The only factors that the court looks at when it comes to child support is the payor’s income, the number of children that the parties have, and the province in which the payor resides.
Section 7 Expenses
Section 7 Expenses refers to expenses that are stated in Section 7 of the Federal Child Support Guidelines and includes the following expenses:
-
- Childcare expenses: Daycare or babysitting
- Medical Expenses: Medical expenses where the child is uninsured
- Education Expenses: Tuition for private or post secondary schools or tutoring
- Post secondary expenses
- Extracurricular activities: such as basketball, soccer, dance lessons etc.
Section 7 expenses are usually proportionate to the parents’ income. For example, if parent one earns $70,000.00 per year and parent two makes $30,000.00 per year, parent one is responsible for 70% share of the child’s section 7 expenses, while parent two is responsible for 30% of section 7 expenses.
When Can the Child Support Amount be Changed
Child support can be varied when
- Change in the payor party’s income level;
- Child moves in with the payor party; and
- The child(ren) moves out of the receiving party’s home.
How to Change Child Support
If you are looking to change child support there are two ways in which child support can be changed.
- Consent: The first way in which child support amounts can be varied is on consent. If both parties agree to changing the child support amount, then the amount can be changed by creating a new agreement, which will then be filed in court.
- Motion to Change: If both parties do not consent to changing child support then a motion to change will have to be brought in front of the Court and a Judge will decide on whether the terms of child support can and should be changed.
Enforcement of Child Support Payments
If you do not pay child support the consequences can be serious. In Ontario, the Family Responsibility Office (FRO) is responsible for enforcing child support orders. If you fail to pay child support, the FRO can take the following course of actions;
- Garnishing wages: Taking a certain amount of money from the wages you receive from your job
- Garnishing bank accounts: Taking money from your bank account
- Deducting child support from federal government payments;
- Suspending Drivers Licenses and or passport;
- Lien on any property you own; and
- Writ of seizure and sale: Seizing any property you own and selling it.
The consequences of not paying child support are serious, and can have drastic consequences on your life. At Nazarian Law, we are experienced in calculating child support, varying child support and enforcement of child support payments.
When Does Child Support Terminate?
Child support terminates when the child turns 18, is not dependent on parents, and is not under the parental control of the parents.
Key Takeaways on Child Support:
- Child Support: Ongoing payment to cover a child’s needs (food, clothing, shelter) after separation or divorce.
- Duration: Until the child turns 18 or finishes education.
Types of Child Support:
- Table Amount: Based on parent’s income, covers basic needs.
- Self-Employed: Income calculated using average of past 3 years if income fluctuates.
- Imputed Income: If a parent is under-employed (e.g., stops working overtime), the court can estimate their potential income.
Factors for Child Support:
- Payor’s income
- Number of children
- Province of payor
Section 7 Expenses: Extra costs like childcare, medical, education, and extracurriculars. Usually split between parents based on income.
Changing Child Support:
- Consent: Both parents agree and file in court.
- Motion to Change: If no agreement, a judge decides.
Enforcement: Failure to pay can lead to:
- Wage garnishment
- Bank account garnishment
- Suspension of licenses or passports
- Property liens or asset seizure.
Who Pays Child Support?
- Typically paid by the parent with less custody (non-custodial parent).
- Both parents are financially responsible for the child’s well-being.
How is Child Support Calculated?
- Based on the paying parent’s income and the number of children.
- Follows the Ontario Child Support Guidelines.
Shared Custody or Equal Parenting?
- In cases where parents share custody (each has the child at least 40% of the time), child support may still be needed.
- The amount can be adjusted based on both parents’ incomes and time spent with the child.
- A “Set-off” method is used to determine the final payment.
When Does Child Support End?
- Child support generally stops when the child turns 18, is independent, and no longer under parental control.
————————————-
Disclaimer
The content provided in this article or blog is for informational purposes only. It is not intended to constitute legal advice or to replace the advice of a qualified legal professional. While we strive to provide accurate and current information, the law is complex and constantly changing, and each person’s circumstances are unique. Therefore, you should not rely on this information as a substitute for professional legal advice. This information does not create an attorney-client relationship between you and our law firm. We strongly recommend that you consult with a qualified attorney in your jurisdiction to understand your legal rights and obligations. Always seek legal advice before making any decisions that may impact your legal rights or obligations.
