Friday, 7 April 2017

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.

Thursday, 6 April 2017

Child Support - How is the amount to be paid determined?


The amount of child support to be paid is based on the payor’s gross income and the number of children.  The support amount is set out in a chart called the Child Support Guidelines.  These Guidelines are available online and can be found on the Department of Justice website.
Child support is not a negotiable figure and will be awarded in accordance with the Guidelines.  In very rare circumstances, a support payor may be able to prove that paying support in accordance with the Guidelines would create an “undue hardship” for him/her but these cases are few and far between.  We can help you determine whether you qualify for this claim.

In instances where the children spend at least 40% of the time with each parent, or if the children are split between the two households, the amount of child support to be paid is often affected.  Please read the article regarding shared/split custody and child support to learn more.
Child support is designed to assist the primary caregiver with the cost of feeding, housing, and clothing the children.  Costs such as daycare, sport registration fees, and school tuition are above and beyond child support and are usually paid on a pro rata basis by the parents.  The proportionate share is determined by dividing Parent A’s gross income by the combined income of both parties.  The result is the percentage owed by Parent A; the remaining balance is Parent B’s share.

Clients often ask whether the income of their new partner or the ex-spouse’s new partner are considered.  They are not.  This may create a seemingly unfair result, however, the law simply does not consider the incomes of any new partners when determining child support.
When children are over the age of 18, their entitlement to child support can still exist.  However, depending on the particulars of your situation, the Guidelines may no longer apply.  We would be happy to discuss this with you and help you determine whether your child’s support entitlement is less than the Guideline amount.
 
Determining the correct amount of child support to be paid can be complicated (i.e. if the support payor is self-employed or if a child resides in residence during the school year).  We can help explain your child's support entitlement.