Table of contents

• Author: Julien D. Payne - Marilyn A. Payne
• Pages: iii-xv

PREFACE xvii

ACKNOWLEDGMENTS xix

CHAPTER 1

CRITERIA AND OBJECTIVES OF CHILD SUPPORT 1

1. Introduction 1

2. Relevance of Income Tax 2

3. Statutory Provisions Regulating Child Support 7

4. The Federal Child Support Guidelines 11

   1) Coming into Force 11

   2) Terminology 11

   3) Objectives of Federal Child Support Guidelines 11

   4) Obligor’s Income Model of Federal Child Support Guidelines 12

5. Application of Federal Child Support Guidelines; Provincial Legislation; Foreign Divorces 13

   1) Orders Governed by Federal Child Support Guidelines 13

   2) Provincial Guidelines 13

   3) Extramarital Children; Disputed Paternity 15

   4) Foreign Divorces; REMO applications 17

6. Presumptive Rule; Provincial and Territorial Tables 17

7. Applicable Provincial or Territorial Table 19

8. Fixed Table Amount; Judicial Discretion; Condition, Means, Needs and Other Circumstances 20

   1) Definition of “Condition” of Spouses and Child 21

   2) Definition of “Means” 21

   3) Definition of “Other Circumstances” 22

   CHAPTER 2

   JURISDICTION 24

1. Judicial Jurisdiction over Original Application for Child Support on or after Divorce 24

2. Evidence; Practice and Procedure 24

3. Legislative Authority of Parliament 25

4. Canadian Charter of Rights and Freedoms 26

5. Competing Jurisdictions under Provincial and Federal Legislation 27

6. Time of Original Application 30

7. Dismissal of Divorce Petition 31

8. Status of Applicant; Payment to Child 31

   I. Third Party Payments 37

10. Advance Payments; Post-dated Cheques; Electronic Transfers 38

11. Child Residing Outside Canada 39

    L. Effect of Death 39

    CHAPTER 3

    DEFINITIONS OF “CHILD OF THE MARRIAGE”; ADULT CHILDREN; OBLIGATION OF DE FACTO PARENT 40

1. Relevant Statutory Provisions 40

2. Effect of Differing Criteria under Federal and Provincial Legislation 43

3. Applicable Criteria under Divorce Act and Federal Child Support Guidelines Respecting Children under and over the Provincial Age of Majority 44

4. Child’s Illness or Disability; Respective Obligations of Parents and State 45

5. Post-Secondary Education or Training 51

6. Children over Age of Majority: Section 3(2) of Guidelines 64

7. Unemployment; Scope of “Other Cause” 78

8. Withdrawal from Parental Charge 80

   I. Reversion to Former Status of Child of the Marriage 84

10. Persons Standing in Place of Parents 85

    1) Legal Requirements 85

    2) Termination of Relationship 98

    3) Respective Obligations of Biological or Adoptive Parents and of Persons Standing in the Place of Parents; Joint and Several Liability 100

    4) Independent Actions between Sequential Parents 111

11. Conduct 114

    CHAPTER 4

    DETERMINATION OF INCOME; DISCLOSURE OF INCOME 121

1. Whose Income? 121

2. Written Agreement as to Annual Income 121

3. Determination of Annual Income; Use of CRA T1 General Form; Statutory Adjustments 122

   1) General Observations 122

   2) Basic Steps for Determining Income 123

   3) Section 16 and Schedule III Adjustments 125

   1. Child Tax Benefit and GST Credits 128

   2. Employment Expenses 129

   3. Social Insurance Benefits 130

   4. Dividend Income 131

   5. Capital Gains 131

   6. Non-arm’s Length Payments 132

   7. Fiscal Year End Adjustments 132

   8. Capital Cost Allowances on Real Property 133

   9. Partnership Income 133

   10. Stock Options 133

   11. Union Dues 135

   12. Spousal Support Payments 135

   13. Child Support Payments 136

   4) Personal and Business Expenses and Losses 138

   5) Commission Income; Bonuses; Stock Options; Severance Packages 138

   6) Problems with Self-employed Parents 140

   7) Student Loans 142

   8) Future Commissions 142

   9) Exclusions from Income 142

   10) RRSPs; Pensions 143

   11) Work Done But Unbilled 145

   12) Trust Funds 146

   13) Seasonal Employment 146

   14) Damages; Structured Settlements 146

   15) Universal Child Care Benefit 146

   16) Foster Parent’s Allowance 147

4. Most Current Information to Be Used 147

5. Pattern of Income 152

6. Income of Shareholder, Director or Officer of Corporation; Adjustment of Corporation’s Pre-Tax Income 158

7. Imputing Income 171

   1) Listed Circumstances under Section 19 of Guidelines 171

   2) Non-exhaustive List under Section 19 of Guidelines 173

   3) Evidence 175

   4) Earning Capacity; Intentional Underemployment or Unemployment 177

   5) Unreported Income; Underground Economy 192

   6) Vocational Assessment 192

   7) Forgivable Loans; Family Gifts 192

   8) Income Tax Concessions 195

   9) Failure To Make Financial Disclosure 197

   10) Lifestyle 198

   11) Investments; Financial Management 198

   12) Bank Records 199

   13) Income Splitting 199

   14) Appeals 200

   15) Capital Assets 200

   16) Diversion of Income 200

   17) Unreasonable Expenses; Capital Cost Allowances; Optional Inventory Adjustments 201

   18) Barter Arrangements 208

   19) Casual Earnings 208

   20) Underutilized Assets 208

   21) Cohabitant’s or Spouse’s Income 209

   22) Provisional Orders 210

   23) Shareholder Loans 210

   24) Personal Injuries Settlement 211

   25) Interim Orders 211

   26) Overtime 211

   27) Free or Subsidized Accommodation 213

   28) Income from Illegal Activity 214

   29) Foster Care Allowances 214

8. Child’s Access to Income 214

   I. Income of Non-Resident Spouse; Currency Exchange Rate 215

10. Social Assistance 216

11. Income Information 219

    L. Ongoing Disclosure 229

13. Non-disclosure of Income or Assets or of Material Change of Circumstances 232

14. Disclosure by Third Parties or Non-parties 233

15. Sanctions for Non-disclosure 240

16. Financial Statements and Budgets 243

    CHAPTER 5

    SPECIAL OR EXTRAORDINARY EXPENSES 245

1. Distinctions between Ordinary and Extraordinary Expenses; Definition of Extraordinary Expenses 245

2. Exhaustive List of Designated Expenses; Definition of “Means” 252

3. Sharing of Expenses as Guiding Principle; Effect of Spousal Support 257

4. Subsidies, Tax Deductions or Credits 261

5. Particulars of Expense To Be Specified in Order 265

6. Add-Ons or Set-Offs 265

7. Direct and Hidden Costs of Custodial Parent 265

8. Periodic or Lump Sum Payments 265

   I. Child Care Expenses 266

10. Medical and Dental Insurance; Medical...