Child Support – Sources of Income

According to s.16 of the Federal Child Support Guidelines, in order to determine the quantum of child support, you must first calculate a payor’s total income.   The courts have evaluated certain types of “income” and considered whether or not it should be considered in determining the payor’s income:

– the definition of “income” as set out in the Guidelines is very broad;

– non-taxable income (eg. WSIB) is considered “income” and will be grossed up for tax;

-Employment Bonus was included as “income ” for the year in which it was received;

– non-taxable structured settlement payments as a result of a personal injury claim were not considered “income” if the payments were for the cost of personal care and not lost wages, in which case it would be considered “income” for support purposes;

– overtime income is considered “income” for support purposes;

– a one – time severance package (which was a form of replacement income) was considered “income” for support purposes;

– RRSP withdraws used to pay living expenses was considered “income”; and

-bonus, stock options and severance packages are “income” for the purposes of determining support.

Although the definition of “income” as set out in the Federal Child Support Guidelines is broad, one of our Toronto family lawyers would be glad to discuss this issue in depth. If you have any further questions, our divorce lawyers would be happy to answer those as well.