Child Support Tables updated as of November 22, 2017

The Child Support Tables under the Federal Child Support Guidelines were updated and took effect on November 22, 2017.  The Federal Government updated the Tables to reflect more recent tax rules. 

In Ontario, the amount of child support that a parent pays is largely governed by the Child Support Tables under the Child Support Guidelines - you determine the province the payor is from, the payer's income, and how many children are entitled to support, and find the corresponding amount under the Tables to arrive at a monthly child support amount.  This is a generalization and can be affected by claims for undue hardship, shared physical custody or split custody, incomes over $150,000, children over the age of 18 years and other issues.  Further, this monthly amount does not include the amounts required for add-on expenses (special or extraordinary expenses such as health expenses, child care, educational expenses, and extracurricular activity expenses).

If you have a child support order or agreement you may want to update it to reflect the new Tables.  If you are in the process of obtaining or negotiating a court order or agreement dealing with child support you should look at the new tables to see what the updated obligation is. 

If you have any questions or concerns regarding  your child support rights or obligations please contact our office at 705-302-3696 to book a consultation with one of our lawyers and we would be happy to assist you.

Equalization - What is It and How is It Calculated?

In Ontario, equalization refers to property (assets and debts) division for married spouses only.  This does not apply to common-law couples (i.e., couples who cohabit but do not marry). 

Generally, for each spouse, the following calculation is completed:

               (a)  add up all of the assets that the spouse owned on the date the parties separated
                      (also known as the "valuation date");

               (b)  subtract all of the debts that the spouse had on the date of separation from the
                      value in (a) above to obtain that spouse's net worth on the date of separation; then

               (c)  subtract the net worth (assets less debts) that the spouse had on the date of
                     marriage.

The result of this mathematical exercise equals a spouse's net family property (NFP).  NFP refers to the increase in net worth that a spouse has obtained during the marriage.  The spouse with the highest NFP pays the other one-half the difference between the parties' NFPs.   Confused yet?  An example may help:

            Let's say the Husband had the following assets and debts

                a)  on the date of separation:
                      
                                        Matrimonial Home - 50% owned with wife: $150,000.00
                                        Car: $10,000.00
                                        Bank Account: $5,000.00
                                        Investments: $5,000.00
                                        Employment Pension: $100,000.00
                                        Mortgage on Matrimonial Home ($75,000.00)
                                        Credit Card ($5,000.00)

                                        = net worth on date of separation: $190,000.00

               b)  on date of marriage:
                 
                                       Car: $15,000.00
                                       Bank Account: $2,000.00
                                       Pension: $50,000.00
                                       Credit Card: ($10,000.00)

                                        = net worth on the date of marriage: $57,000.00

               c)  Husband's NFP = $190,000 less $57,000.00 = $133,000.00.

            Let's say we did the same calculation for the wife (using different numbers) and the wife's
            NFP was $75,000.00.  

            The difference in NFPs would be $133,000.00 less $75,000.00 = $58,000.00 half of which
            is $29,000.00.  That means that the Husband would owe the wife an equalization
            payment of $29,000.00 and since the matrimonial home is jointly owned each party is
            entitled to half the equity in the home as well.  The parties would keep all of their
            other property that is in their sole names and their own sole debts.

This is a simple example, but equalization can get quite complicated as there are laws relating to the matrimonial home owned on the date of marriage, excluded property, valuations, whether there should be an unequal division of NFPs and many more.  Spouses should retain lawyers to assist them with the equalization calculation and applicable laws associated with same.

                          

Why You Should Hire a Lawyer: The Dangers of "Do It Yourself Family Law."

 

Many individuals choose to represent themselves in a separation or divorce.  Some examples are as follows:

 

           1.  A party representing himself/herself in Family Court;

           2.  Both parties unrepresented and draft a Separation Agreement amongst themselves;

           3.  One party represented by a lawyer and the other party not obtaining Independent
                Legal Advice before signing a Separation Agreement.

 

There are dangers in all of these options as follows:

 

      1.  Self-Representation in Court - you are more likely to obtain a positive resolution if
          you hire a lawyer to represent you in Court or at least to coach you through the process

          (discussed below under Limited Scope Retainers).    If one party is represented by a
          lawyer and the other is not, then the self-represented party is at a significant  
          disadvantage in the case.  From not knowing the law, not knowing the rules of Family 
          Court, to not knowing how to properly fill out court paperwork the self-represented party is
          taking a risk in not hiring a lawyer to guide him/her through the process.

 

      2.  Self-Preparation of Separation Agreements - There are three significant risks of signing

           a home-made separation agreement:

 

               a)  The Agreement may be found unenforceable for a variety of reasons, such as

                    missing essential terms, not having independent legal advice, not having proper

                    financial disclosure exchanged, or having unclear/conflicting terms. 

 

                b)  A party may be agreeing to something that he or she does not intend.  If the parties

                     use a "precedent" separation agreement either from the internet or from someone

                     else that hired a lawyer to do their Agreement, the parties may include clauses from

                     these precedents that do not apply to their specific case or that the parties do

                     not understand the consequences of. 

 

                c)  A party may not have included a term/terms that should be included such as proper

                     releases, review clauses, termination clauses, etc. 

  

      3.  Not obtaining Independent Legal Advice - if one party does not obtain independent

           legal advice (ILA), that party may not thoroughly understand what he or she is signing or

           the consequences of it.  For the party that has a lawyer, the risk if the other party does not

           have ILA is that the Separation Agreement could be set aside for that very reason as the

           non-represented party could allege that he or she did not understand what they were

           signing or that they did not have the capacity to sign. 

 

Family Law is a complex area of law that is changing every day and has significant consequences for the daily life of the person involved (i.e., impacts their daily finances, how much time they see with their children, etc.).  All of the risks mentioned above can result in increased legal costs for the individual to hire a lawyer to try to fix what was done the first time when the individual was self-represented.  By hiring a lawyer to represent you in your separation or divorce you can save thousands of dollars in future legal costs.

 

Not everyone can afford a lawyer to fully represent them.  An alternative to hiring a lawyer for full representation is called a Limited Scope Retainer.  A Limited Scope Retainer is a client hiring a lawyer for a limited purpose of their case. Examples include:

 

         1.  Litigation Coach - the individual is self-represented, but hires a lawyer to coach them in

              the background, give an opinion on a specific legal issue, represent them only on a

              specific legal issue, represent them only for a specific step in the process, help the

              individual draft their court paperwork or provide ILA on a proposed resolution.

 

         2.  Provide ILA and draft a Separation Agreement in which the parties have agreed upon

              terms amongst themselves - the parties have saved money on the negotiation part of

              their case, but hire lawyers to ensure that the Agreement is legally binding, clear and

              sets out what they agreed to.  Further, the lawyers will ensure that their clients

              understand what they are signing, have capacity to sign, and understand the

              consequences of the Agreement.

 

 

At Chapman McAlpine Law, we offer both full representation and limited scope representation.  Whatever process you chose, we strive to offer family law services in an approachable, friendly and compassionate environment, while providing reasonable costs and exceptional service. Contact us today to book a one hour no-obligation consultation: 705-302-3696 or info@chapmanmcalpine.com.

 

           





What is the Family Responsibility Office?

The Family Responsibility Office (or FRO) is a government agency responsible for the enforcement of all child and spousal support orders in Ontario.  FRO is also able to enforce the support provisions of a Separation Agreement as well so long as it has been filed with the court using a Form 26B (Affidavit for Filing Domestic Contract) which can be found here.  There is no fee for the initial filing with FRO and they do not deduct a percentage from the support amounts enforced each month.  If you withdraw from FRO and then wish to re-engage their services, there will be a mandatory administrative fee.

 When FRO receives a new support order to be enforced, it will send out intake packages to both the support recipient and the support payor.  The support recipient is required to provide information on any payments he/she has received up to the point of completing the document and will need to swear to the truth of those statements before a lawyer or commissioner of oaths.  The support payor will be asked to provide payment information and will be given an opportunity to set up direct monthly payments to FRO.  In the event that the support payor opts not to respond, FRO has the authority to garnish up to 50% of the support payor’s wages at source.

 

FRO has other enforcement options available to it as well, including having the support payor’s driver’s license suspended, having the support payor’s passport suspended, garnishing all government funds the support payor is otherwise entitled to (i.e. income tax refunds), and imprisoning the support payor.  Child and spousal support arrears survive bankruptcy and there will be no reduction of the arrears amount in the event of imprisonment.

 FRO is only able to enforce the support amounts specified in the Order or Agreement.  FRO will not amend the amounts it collects until such time as a new Order or Agreement is put into effect.  Further, FRO will not automatically terminate enforcement of support provisions even if a child turns 18 (or 28 for that matter).  If you are uncertain whether the support amounts in your matter should be varied, we can review this with you during a consultation and provide guidance on the options available to you.

 

Navigating the issues of child and spousal support is difficult; we are here to help.

What to expect at a consultation

We offer one-hour consultations at a reduced rate.  These appointments are an opportunity for you to meet with one of our lawyers and receive guidance on the next steps to be taken towards a resolution.  These meetings allow you to get a sense of whether you are comfortable with us and for us to determine whether yours is a matter that we can provide meaningful advice on.  Rest assured, these consultations do not include a sales pitch and there is no obligation to sign a retainer at the end.

Many people are nervous when they come to meet us for the first time.  We understand: this is an incredibly difficult time in your life, you are likely experiencing an array of emotions, and you may have never had to deal with a lawyer before.  Please know that we see people at all stages of their separation/divorce journey.  We are here to assist you with your legal matters, not judge your emotional state.  If it helps, most people tell us they feel much better after meeting with us and, so far, we haven’t bit anyone.

 At the beginning of the consultation we will ask you for some background information so that we can get a sense of what has brought you to us.  We do not require a full narrative and there is no need to write the history of your relationship out unless doing so is helpful to you.  If you have received a letter from a lawyer or if you have been served with court documents, please bring a copy with you for our review.  It is also helpful if you prepare a list of the questions that you would like answered as the amount of ground we cover and the amount of information you receive during the meeting can be overwhelming and things can be missed. 

 

Depending on the circumstances, we may write an email or letter to the lawyer who has contacted you; if we do, we will ask that he/she continues to correspond directly with you unless you retain us.  If you have been served with court documents, we will provide information to you on what documents you need to prepare in response and will explain the nature of the next court date.  It is rare that we would be in a position to give you a solid idea of settlement figures during a consultation because financial disclosure has usually not yet been exchanged at that point.

 

After you have booked a consultation, if you need to reschedule or cancel it, just give us a call or send an email.  You will not be asked why you need to change your appointment and you will not receive any hassle from us; life happens, we get it.  We do appreciate knowing in advance if you can’t make it in, though, as we can then offer that time to another client.

 

We look forward to meeting you at a consultation.  Call Paul at 705-302-3696 to book.

 

 

Who will the children live with? An overview of "access"

This is probably the most pressing question you will have once the decision to separate has been made.  There are no hard and fast rules on this and what works for one family may not work for another.  Your unique circumstances must be considered in determining the appropriate parenting schedule for your children.  Research has shown that having a consistent, predictable schedule is important for children to successfully transition to their new family dynamic.

In many cases, the children will live primarily with one parent and will have “access” to the other in accordance with an agreed upon schedule.  In some cases, the children will spend an equal amount of time with each parent, for example on a “week-about” basis.  Finally, there is also a possibility for the children to be split up between the parents with some children living with Dad and others living with Mom; this is called “split custody”.

Many factors will need to be considered when determining your parenting schedule, including:

1.      Has one parent historically done the majority of the caregiving?

2.      How old are the children?

3.      Do either of the parents do shift work?

4.      Are there any safety concerns?

5.      Are the children old enough to have a say?

6.      Will the proposed primary caregiver facilitate access to the other parent?

The law says that the children should spend as much time with each parent as is in their best interest.  We will assist you in negotiating the parenting schedule that will accomplish this.

Child Support - Shared/Split Custody

In situations in which children reside primarily with one parent, child support is fairly straightforward to calculate.  We look to the Child Support Guidelines and determine what the support payer's obligation is based on his/her gross annual income and how many children are entitled to support.  However, in situations where the children either spend roughly equal amounts of time with each parent or where one child lives with Mom and another lives with Dad, determining the amount of child support to be paid can be more complicated.

 

 

In a “split custody” arrangement, one or more children live with Mom and one or more children live with Dad.  In these cases, “differential child support” applies.  To determine this amount, we must first determine what Mom owes to Dad using her income, the number of children in Dad’s care, and the Child Support Guidelines.  We must then determine what Dad owes to Mom using the same formula.  The difference between the two amounts is called the “differential” or "offset".

 

For example, if Mom owes Dad $500/month in child support and Dad owes Mom $600/month, Dad would end up paying Mom $100/month as that is the difference between the two of them.

 

In a “shared custody” arrangement, the children are in the care of each parent no less than 40% of the time.  The legislation is somewhat unclear on how child support is impacted in these situations and I have had a judge tell me that these are the most dreaded matters to be heard at court.

 

Essentially, the starting point is to find the differential child support amount.  Then, the legislation says we must consider the “increased costs of shared custody arrangements” and the “conditions, means, needs and other circumstances of each spouse and of any child for whom support is sought”.  The case law shows a hodgepodge of results, some higher than the differential, some lower, some right on the button.  There appears to be very little rhyme or reason to the discrepancies in the results.  As the amount is at the discretion of the judge, there is no certain way to predict the outcome.

 

As a result of the unpredictable nature of shared custody child support issues, many parents often agree to simply use the differential amount.  The benefit to this (aside from avoiding costly court appearances and protracted negotiations) is that the parents are then easily able to adjust the support amount as their incomes change from year to year.

 

To learn more about these unique child support issues, please contact us to book a consultation.