Most people are familiar with the concept of child support. In a separation or divorce, the parent with whom the children do not live primarily must pay money (the payor) to the parent with whom the children live primarily (the recipient). The idea is that both parents are contributing to the cost of raising a child. The amount of support is usually calculated based on the payor parent’s income, although there are some exceptions to this, such as when parents essentially “share” parenting of the child, and are both incurring out of pocket costs for the child’s care.
In an effort to make child support easier to calculate and more fair to children and parents, the Government of Canada established the Federal Child Support Guidelines. The Guidelines pre-set the amount of support payable based on a parent’s income, province of residence, and number of children. A parent’s guideline income is usually determined based on line 15000 of their income tax return.
Sometimes a parent’s tax return does not accurately reflect their real income due to tax benefits, self-employment, or other reasons. In that case, the parent’s guideline income may be different than what is reflected in line 15000 income of that parent’s tax return.
A parent who feels the guideline support is too high for them to pay may make an application for what is called ‘undue hardship’. However, this application is quite complicated and involves many different factors. You will want to speak to a lawyer experienced in dealing with child support matters to navigate this effectively.
The guideline amount is often also referred to as “base child support”. This means that the number for monthly support is only a starting point, and that generally the parents are also expected to contribute to additional expenses, including daycare, and the out-of-pocket cost of medical and dental work. The amount each parent pays towards these additional expenses is split proportionally based on both parents’ incomes.
These are called “extraordinary expenses”, and are often referred to as “section 7 expenses” as they are set out in section 7 ofthe Federal Child Support Guidelines. Section 7 expenses can include dental, medical, or childcare costs, as well as a number of other expenses. Whether or not an expense is “extraordinary” depends on a number of factors which can be discussed with your lawyer.
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