Child Support & Complex Scenarios
Child support is money paid by one parent to the other for the support of the children. The amount of child support to be paid depends on the incomes of the parties, the number of children, and the parenting arrangements in place. The Federal Child Support Guidelines set the child support laws for the amounts of child support to be paid in any given situation.
Child Support Payments
Generally, there are two basic types of child support, monthly child support payments and child support for special expenses. Monthly child support is calculated by determining the incomes of the parties and the number of children. If the parents are employees, calculating child support should be relatively simple and we have a free online support calculator that can assist with this.
Self-Employed Parents
When one parent is self-employed or earns income through corporate dividends or shares, calculating child support can become more complex. This is due to the presence of business expenses, benefits, perks, and tax deductions that can alter their reported income. These factors may create a skewed picture of the actual disposable income available to support their children.
International Income
Moreover, if one of the parents lives in another country where they are not taxed at the same rate that they would be in Canada, child support can be increased to reflect this reduced tax. In all of these situations, the income in a parent’s tax return may not accurately reflect the income that should be available for child support.
Child Support for Special Expenses
Special expenses include things like childcare, healthcare costs including dental work, school expenses and extracurricular activities. However, special expenses must be reasonable based on the needs of the children and the financial circumstances of the parents. Child support for special expenses is paid proportionately based on the incomes of both parents. This means that if the parents are both making the same income they both pay 50% of these expenses, but if their incomes are different the percentages will change.
Parenting Arrangements and Child Support
Who pays and who receives child support is based on the parenting arrangements. If one of the parents has the children over 60% of the time they will receive the child support. However, if the children are on a shared parenting schedule, anywhere between 60% with one parent and 40% with the other, child support may be based on a set-off. In a set-off the amount of child support payable by each parent is calculated and the parent who would pay more pays the difference to the other.
Support for Adult Children
Child support can also continue for a child who is over 18 or 19 but who is still dependent on their parents because they are attending University or because they have a disability. In these situations the amounts that are set out in the Federal Child Support Guidelines may not be appropriate and child support may be determined by looking at other factors. These factors may include how much income the child is earning, any scholarships and bursaries available to the child, any RESP’s available, whether the child is living at home or at University, the cost of the child's tuition and living expenses, and the relationship between the child and the parents.
Additional Resources
- Read more from our resources section on Child Support.
Our Approach to Child Support Cases
Sometimes child support is straightforward but often calculating child support can be very complicated. At Crossroads Law, our family lawyers are experienced in determining child support in difficult situations. We have helped many parents sort through complex income determination and for our high net-worth clients we often consult with accountants and tax specialists. We have also helped many parents with international child support cases.
For a FREE initial consultation on child support, please reach out to us.
Significant life changes like income variation or custody shifts can warrant modifications to existing child support agreements or orders.
In Canada, child support covers extracurricular expenses categorized under Section 7. These include activities, education, and medical costs, shared proportionately between parents based on their financial situation.
Child support in Canada is calculated using Federal Guidelines based on income and custody, with additional considerations for business owners' income.
Parents must pay child support until the child is 18 in Alberta and 19 in BC, with exceptions for illness, disability, or if the child is pursuing higher education.
When a parent defaults on child support, the other parent can seek resolution through direct contact, mediation, or enforce payment via legal means and provincial agencies.
Frequently Asked Questions
Support Calculators
Free Child & Spousal Support Calculators to help you understand what support payments may look like.
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Child Support Legal Resources
Can You Legally Create Your Own Child Support Agreement?
In Canada, child support is guided by federal and provincial laws. For married couples, the Divorce Act applies, while the Family Law Act governs support for unmarried couples.
Understanding Self-Employed Income for Child Support Calculations
The objectives of the Federal Child Support Guidelines (the “FCSGs”) are not to maximize or minimize child support, but rather to ensure children receive the financial support they are entitled to after their parents separate.
When Child Support Feels Overwhelming: Understanding Undue Hardship in Canada
In Canada, parents have a legal obligation to financially support their children, even after a divorce or separation.
