B. Written Agreement as to Annual Income

• Author: Julien D. Payne - Marilyn A. Payne
• Pages: 121-122

Page 121

Where both spouses agree in writing on the annual income of a spouse, the court may consider that amount to be the spouse’s income for the purpose of the Federal Child Support Guidelines, if the court thinks that the amount is reasonable having regard to the income information provided under section 21 of the Guidelines.¹Where a father derives his income from his private corporation and the parents have negotiated a separation agreement with competent independent legal advice which provides a mechanism for ongoing financial disclosure and a determination of the father’s annual income having regard to the fact that the father’s tax year end does not coincide with that of his corporation, the court may uphold the agreement pursuant to section 15(2) of the Federal Child Support Guidelines even though the difference in the fiscal year of the parent and his corporation results in a one-year delay in the parent’s reporting of the receipt of dividends from the corporation.²

Page 122

The court has a duty to ensure that a child support order reflects the parent’s true income. Spousal acknowledgment of a specified income in minutes of settlement does not estop a party from subsequently asserting hidden income and may warrant an order for further financial disclosure, but a court should not sanction a "fishing expedition" and may impose the penalty of costs if the allegation of a higher income is not substantiated.³

[1] SOR/97-175, as amended, s. 15(2); Hayden v. Hayden, 2011 ABQB 731; Myers v. Myers, [2000] N.S.J. No. 367 (S.C.); P.M.C. v. R.L.C., [2001] N.S.J. No. 72 (Fam. Ct.) (application under Family Maintenance Act and provincial guidelines); V.C. v....