A Guide to Child Support in Canada

Following a divorce, the life and daily routine of the household changes dramatically. Former spouses go from living together to living apart. The upheaval marks the beginning of a succession of other changes to come, such as negotiating custody rights for the children, the distribution of property and, in particular, alimony. The latter is the contribution to the expenses of the parent who has left the family home. It is attributed to the ex-partner or to the children born of the union. Its estimation, its fixing and its modalities are complex. This guide will help you understand how alimony works.

Alimony

The separation of two spouses gives rise to alimony, but what is it?

What is alimony?

The definition of alimony is an amount of money paid by one person on behalf of their former spouse. The amount is intended to cover the needs of the ex-partner or their children. The supply follows a regular rhythm. The payment follows the pronouncement of the divorce by the court.

Alimony is divided into two categories: spousal support following a divorce and child support. The first category provides for the needs of the ex-spouse, either as directed by the court or by written agreement. The second category provides for the needs of descendants born of the civil union, marriage or common-law relationship.

What does support cover? The amount covers expenses related to food, schooling (of the children), heating, clothing and housing.

What are the specifics of alimony?

Alimony is paid to a recipient after acourt order or a written agreement validated by the court has been issued.

The payments are intended to provide for a person related to the payor (a child or ex-partner).

The recipient is a former spouse, common-law partner or civil union partner of the payor. At the time of payment, both persons are already living apart. The payor may also be responsible for the name of the father or mother of the recipient’s child.

The money is paid out periodically. The court has determined the frequency beforehand. The frequency is set down in a court order.

Finally, the support is paid either directly to the recipient or to an agent who is responsible for collecting the amount.

Who has to pay support?

Parents have certain obligations to their children. They are responsible for their children’s education and development. In doing so, they pay the costs of these duties in proportion to their resources and the needs of the children.

Following a divorce, these obligations remain in effect. The parent who has lost custody of the children provides child support. He or she pays the amount to the custodial parent.

Despite their separation, both parents continue to fulfill their obligations and responsibilities to their children as usual. Health and school matters even require their consultation.

Child support is the contribution of the parent who has relinquished custody of the children, in the same way as the principal residence. It takes effect following the decision of the Family Court (JAF).

It remains applicable even if the beneficiary parent has a more comfortable income than his ex-partner.

What is the age limit for alimony ?

Some parents wonder until what age alimony continues. The age limit applies only to children. Furthermore, it lasts until the majority of the beneficiaries by virtue of the law according to which: “each parent contributes to the maintenance of the children in proportion to their resources, this obligation does not cease until their majority”.

However, there is no legal provision requiring that the payment be stopped when the beneficiary reaches the age of majority, as each situation calls for a specific measure.

The final decision rests with the Family Court. The judge does not look at the age of the beneficiary, but only at his or her financial capacity. As a result, a parent may be required to pay child support until they are financially independent.

Even so, the judge limits the duration of the payment to 29 years. After the age of 30, the adult is no longer able to receive support payments.

In any case, the paying parent can ask for a reduction or even a cancellation of the payment through a court application.

Payment of support

Support is a financial contribution, but how does it work?

What are the regimes of alimony?

There are two types of support payments, one established by the Quebec government and the other by the federal government. The first system applies if both parents live in Quebec.

The second system comes into effect if one of the parents lives outside Canada. In this case, the amount of support depends on the number of children, the payer’s income and his place of residence. Each geographic location has a specific amount. The parent then consults the federal child support tables, which indicate the amounts for each territory.

How is support paid?

The alimony is independent of the social and family benefits as well as the pensions paid to the creditor spouse. The debtor has a number of choices in terms of payment methods. The amount can becredited directly to the beneficiary child’s account if he or she has had it since coming of age. In this case, the child must provide evidence that he or she is unable to support him or herself. The debtor parent may grant the amount to an organization that will pay an annuity to the child.

He can also convert the alimony into a right of use and habitation. Another simpler method is to pay the amount into the ex-partner’s account.

The paying parent also has a variety of choices regarding the frequency of payment. They can make monthly payments or lump sum payments. They can also pay certain fees directly without going through their ex-partner.

What can be done in case of non-payment of alimony?

The omission, non-payment or partial payment of the liable parent is referred to the court. Before litigation, the creditor parent has the right to demand payment out of court. He then initiates legal proceedings if his first attempts have been unsuccessful. He then sends a formal notice of complaint and a formal notice. He also requests the services of a bailiff.

The creditor parent then presents the judgment imposing the payment of support to the judicial officer. The bailiff then starts the civil enforcement procedures. To do so, he carries out seizures of movable or immovable property or an allocation seizure on the debtor’s bank account in order to cover the amounts due.

The creditor parent can also file a complaint and start criminal proceedings for family abandonment.

Alimony in an alternating custody

As a general rule, the parent who does not have custody of the children pays child support. In the case of alternating custody between the two divorced parents, the support system remains the same.

However, the judge will analyze the situation on a case-by-case basis. If the two parents have a significant income difference, the judge favors the low-income parent. If both parents contribute unequally, the judge will restore equity in the parental contribution.

Calculating support

The family court judge uses a reference scale to determine the amount of support.

What variables should be considered when calculating support?

The calculation of the alimony starts on the estimates of the following variables:

• The parents’ income: the total between the disposable income of the father and the mother;
• Basic parental contributions: indicated in the basic parental contribution tables;
• A parent’s income distribution: the ratio of a parent’s disposable income to both parents’ income;
• A parent’s basic support: the distribution of a parent’s income multiplied by the basic parental contribution ;
• A parent’s cost of care: the basic parental contribution multiplied by the parent’s days of care in a year;
• A parent’s contribution: the difference between the basic pension and the parent’s cost of care.

The variables must be calculated for both parents.

How to calculate the amount of support?

The actual calculation remains complex and requires a great deal of expertise. Fortunately, the Internet has made it easy. The digital world is full of simulator sites specialized in calculating alimony. The online tools perform the calculation for you for free. All you have to do is enter the monthly income of the debtor parent, specify the extent of the visiting rights, list the number of children and define the hosting rights.

Digital tools are full of practical options: printable estimates, reproduction of scenarios according to the household situation, explanation of the type of custody… These parameters are intended to better prepare parents and to bring as much precision as possible to the rate estimates.

The tools for calculating child support are for information purposes only. Nevertheless, each situation is different. Only the family court judge will decide the amount, taking into account the variables.

How does the judge set the amount of support?

As a general rule, alimony is subject to the judgment of the family court judge. However, there are exceptions if the parents impose an agreed-upon amount. The agreement will require his approval.

Then, he or she will define the value based on several factors:

• Credits;
• The net monthly income of both parents;
• The rental income, if any;
• The additional income of the spouses;
• The rents;
• The charges relating to the insurances;
• Taxes;
• Specific expenses.

Note that the judge will consider the total income of the paying parent if he or she is in a common-law relationship, civil union or married to another person.

Taxes and support payments

Child support payments are taxable, but there are a few details.

Is child support taxable?

Child support is used to provide for the needs of children. Only, the amount is tax-free for the creditor parent. It is also not tax-deductible for the paying parent. In other words, the debtor does not deduct the support from his or her income and the creditor does not include it in his or her income.

Child support payments are tax deductible if they result from a judgment or written agreement made after April 30, 1997.

In order to take advantage of this tax exemption, former spouses send the “Election for Child Support” form to the Canada Revenue Agency. This way, the support is tax-free and remains tax-free until it ends.

Is spousal support taxable?

Spousal support is used to support a former spouse. It is therefore taxable. In other words, the debtor deducts the support from his income and the creditor includes it in his income.

However, if the judge makes no distinction between spousal support and child support, the total amount becomes child support. Therefore, it is no longer taxable.