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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 06-07-2006, 05:22 PM
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Question child support and EI

Quick question: Does anyone know what is the situation in Ontario if the non-custodial parent is on EI? Do they still pay child support? My wish-he-were-ex just lost his job. We have no sep agreement yet... he has been paying guideline support for 1 1/2 years based on his income... does anyone know what happens now?
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Old 06-07-2006, 06:11 PM
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beltane,

Quote:
Does anyone know what is the situation in Ontario if the non-custodial parent is on EI? Do they still pay child support? My wish-he-were-ex just lost his job. We have no sep agreement yet... he has been paying guideline support for 1 1/2 years based on his income... does anyone know what happens now?

This is a good question. Regardless, if someone is collecting EI, they still have an obligation and responsibility to provide child support. EI is treated as an income. It appears that the individual was laid off. If they quit or was fired, they would not be collecting EI.

the question that does come to mind is what do you base child support on when a payor's income fluctuates in this circumstance. The last 3 year average rule of thumb seems to be reasonable.

lv
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Old 06-07-2006, 09:29 PM
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So you think his child support would still be based on an average of his last 3 years income? I think he's going to try to tell me that he's allowed to base it on his EI income... I guess I should call my lawyer... I hate doing that... it costs me $$$ everytime.
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Old 06-07-2006, 10:28 PM
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beltane,

Generally child support is calculated on the last taxation years income,
(2005) or if one's income fluctuates from year to year the last 3 year average income is used. (2003,2004,2005). It appears your ex does have somewhat of a material change on his hands, that being laid off and collecting EI. The courts would look at what efforts he is pursuing to re-establish employment. ie: job search, resumes, job interviews attending. etc before determine what method to use. I don't believe the guidelines refer to present income.

Read section 16 -20 of the guidelines

http://www.e-laws.gov.on.ca/DBLaws/R...391_e.htm#BK18

Income

Determination of annual income

15. (1) Subject to subsection (2), a parent’s or spouse’s annual income is determined by the court in accordance with sections 16 to 20. O. Reg. 391/97, s. 15 (1).

Agreement

(2) Where both parents or spouses agree in writing on the annual income of a parent or spouse, the court may consider that amount to be the parent’s or spouse’s income for the purposes of these guidelines if the court thinks that the amount is reasonable having regard to the income information provided under section 21. O. Reg. 391/97, s. 15 (2).

Calculation of annual income

16. Subject to sections 17 to 20, a parent’s or spouse’s annual income is determined using the sources of income set out under the heading “Total income” in the T1 General form issued by the Canada Revenue Agency and is adjusted in accordance with Schedule III. O. Reg. 446/01, s. 4; O. Reg. 102/06, s. 2.


Pattern of income

17. (1) If the court is of the opinion that the determination of a parent’s or spouse’s annual income under section 16 would not be the fairest determination of that income, the court may have regard to the parent’s or spouse’s income over the last three years and determine an amount that is fair and reasonable in light of any pattern of income, fluctuation in income or receipt of a non-recurring amount during those years. O. Reg. 446/01, s. 5.

Imputing income

19. (1) The court may impute such amount of income to a parent or spouse as it considers appropriate in the circumstances, which circumstances include,
(a) the parent or spouse is intentionally under-employed or unemployed, other than where the under-employment or unemployment is required by the needs of any child or by the reasonable educational or health needs of the parent or spouse;

(b) the parent or spouse is exempt from paying federal or provincial income tax;

(c) the parent or spouse lives in a country that has effective rates of income tax that are significantly lower than those in Canada;

(d) it appears that income has been diverted which would affect the level of child support to be determined under these guidelines;

(e) the parent’s or spouse’s property is not reasonably utilized to generate income;

(f) the parent or spouse has failed to provide income information when under a legal obligation to do so;

(g) the parent or spouse unreasonably deducts expenses from income;

(h) the parent or spouse derives a significant portion of income from dividends, capital gains or other sources that are taxed at a lower rate than employment or business income or that are exempt from tax; and

(i) the parent or spouse is a beneficiary under a trust and is or will be in receipt of income or other benefits from the trust. O. Reg. 391/97, s. 19 (1); O. Reg. 446/01, s. 6.

lv
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