Calculating Child Support in Ontario: A Guide to Determining the Amount Owed

Child support is an important aspect of divorce and separation in Ontario. Whether the court is making a final or interim order, various steps and methods will be used to determine the amount owed.

The Child Support Guidelines provides a table which is used to calculate child support in this jurisdiction. The Table lists the support owed based on the payor's annual income and the number of children. 

Determining Annual Income

For salaried employees, the "Total Income" on line 150 of the tax return is used to calculate child support. The payor and recipient parent must provide their last three years of tax returns and notices of assessment from the Canada Revenue Agency (CRA) as well as any supporting documents such as current year earnings statements.

Self-employed individuals or business owners may have difficulty determining their annual income. If their income fluctuates, the court may average the last three years of income to determine the payor's income for support purposes. The court can also include pre-tax income from a company if the payor is a shareholder, director, or officer, to prevent hiding of income in corporations.

Income sources such as non-recurring income, union dues, and RRSP redemptions can also affect the Table amount of support. Lawyers often use software that considers these factors when calculating child support.

Imputed Income & Child Support

The court has the power to impute income if it believes the payor is intentionally unemployed or underemployed. If a payor has worked overtime shifts in the past, the court will consider this potential income when evaluating their capacity to pay. If a payor has become unemployed or underemployed to go back to school, the court will investigate if it is for reasonable educational needs.

 If both spouses agree on the payor's annual income, the court will use that figure as the income for support purposes if it is deemed reasonable. 

Income over $150,000

For income over $150,000, the court has discretion to depart from the Table amount and can either award the Table amount or add an appropriate amount for the balance of income over $150,000. 

In most cases, the court follows the amount calculated in the Table, even if it results in a high support award. 

In conclusion, determining child support in Ontario involves following a set of guidelines and considering the payor's annual income, imputed income, and any additional expenses. It is important to seek legal advice from a skilled family lawyer to ensure a fair and accurate calculation of child support.