With tax returns being submitted at the end of this month, it may be time for parents to revisit the support arrangements that are in place for the financial support of their children.\u00a0 Most Separation Agreements and Court Orders contemplate an annual review being undertaken of the financial arrangements in place for the support of any child as a means of ensuring that each child receives an appropriate level of support commensurate with the parents\u2019 ability to pay.\u00a0 A person who is contributing to the financial support of a child should review his\/her Separation Agreement or Court Order to determine what obligations they are under to address an annual review.<\/p>\n
\u2022\u00a0\u00a0 \u00a0Is it necessary to produce a copy of the T-1 General Form submitted to CRA for the prior taxation year?<\/p>\n
\u2022\u00a0\u00a0 \u00a0Is it necessary to produce a copy of the Notice of Assessment received from CRA?<\/p>\n
\u2022\u00a0\u00a0 \u00a0Is it necessary to provide proof of current income?<\/p>\n
Even if the Agreement or Court Order does not make express provision for the exchange of information to facilitate the annual review, the Child Support Guidelines can be relied upon to require such disclosure.\u00a0 Section 25 requires every parent against whom a child support Order has been made, on the written request of the other parent, to provide to the other parent with income\u00a0 information.\u00a0 That disclosure may include:<\/p>\n
a)\u00a0\u00a0 \u00a0a copy of every personal Income Tax Return filed for each of the three most recent taxation years;
\nb)\u00a0\u00a0 \u00a0a copy of every Notice of Assessment and Re-Assessment issued for those same three taxation years;
\nc)\u00a0\u00a0 \u00a0a recent Statement of Earnings; and
\nd)\u00a0\u00a0 \u00a0Financial Statements for the business or professional practice operated.<\/p>\n
Once financial disclosure is exchanged, a redetermination of the amount of child support payable can be determined.\u00a0 This will depend upon the number of children requiring support, the parenting arrangements in place, the income of each parent and the table amounts prescribed.\u00a0 Consideration may also need to be given to the special or extraordinary expenses of the children and whether there are any circumstances that suggest there is undue hardship that may require an adjustment to the table amounts otherwise payable.<\/p>\n
Information on this issue is able to be obtained from the Department of Justice website and from the recalculation service now offered in Ontario that was initiated just a few weeks ago. Members of the Family Law Practice Group at LMR would also be pleased to offer assistance to you.<\/p>\n","protected":false},"excerpt":{"rendered":"
With tax returns being submitted at the end of this month, it may be time for parents to revisit the support arrangements that are in place for the financial support … <\/p>\n