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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 07-28-2012, 07:30 AM
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Default In what situation can Child Support / day care be resduced

As per court order my husband is paying child support ($725) and day care expenses ($425) to his daughter from ex-wife. This amount was based on the arbitrary income of $80,000 as he was a selfemployed at the time support was ordered. Now his income reduced to $48,000 and he is no longer a self employed. But he still needs to pay the same amount. His daughter is now 6 years old. His ex-wife is sending his daughter to a private school which we cannot afford and she took this decison without consulting my husband.
My husband and I have a son now and we cannot afford to pay day care / private school fees while taking care of 1 child at home. I am a house-wife and dont have an income. On the other hand, my husband's ex-wife has a levish life style but we can't really afford to meet her requirements. We have moved to a basement just because we cannot afford to pay for an apartment rent just because most of our income goes towards support payments.
Please advise what should we do?

Thanks!
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Old 07-28-2012, 08:40 AM
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first off what does the court order say about giving each other the NOA and recalculation of the CS every year? The private school is section 7 so she needs your consent in order for you to pay. Is FRO involved? Does your husband have joint or less then that for custody?? You need to give more info so people can give you more informed responses.

It doesn matter her lifestyle. CS is based on the income of the person paying. Same with section 7 it is based on the income of BOTH parents of the child to get the % each pays. If she has a husband or live in boyfriend it doesnt matter.

This is the part you are not going to like, if you cant afford things because of what he pays for CS and daycare for his first child then maybe you need to get out there and work to help support your child. There are choices one makes in life, you decided to have a child with a man knowing his oblligations to his first child. If you want to stay at home then you have to accept that he still has to pay CS and daycare to his first ex.
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Old 07-28-2012, 10:58 AM
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The simple answer to your question is that yes, child support is reduced when there is a change of income. Because many people's incomes are not consistent, adjustments are typically done annually. Circumstances change, and CS should follow them.

So no, he does not need to keep paying the same amount as was originally determined. They should exchange income information and tax returns annually after Notices of Assessment are received, and use those numbers to determine the next year's payments, both CS amount and proportion of other expenses.

Has he not been doing this all along?

And as mentioned, section 7 expenses should be agreed upon in advance by both parents. If the ex enrolled the child in private school without consulting him, he is under no obligation to pay the fees as it is optional because there is a more cost-effective alternative.
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Old 07-30-2012, 10:49 AM
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Read the Court Order; does it specify an amount or that the amount is dependent upon the Guidelines?

If the former, you may need to bring a motion to change. Request that ongoing child support is Guideline amount.

If the latter, provide your NOA and ITR for last year to either FRO or the mother, then continue to pay Guideline amount. For one child in Ontario, the table amount for an income of $48k is $433 per month. Please check the exact income against the tables.

Quote:
His ex-wife is sending his daughter to a private school which we cannot afford and she took this decison without consulting my husband.
Extra-ordinary expenses must be reasonable, taking into consideration the income of the parents. If you did not consent to it and it is out of your price range, don't pay.
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Old 07-30-2012, 11:15 AM
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Sometimes self-employed individuals do not declare proper income for SS or CS purposes. A tax return certainly does not accurately depict a true financial snap-shot of what is real and what isn't. This is when imputed income is handy. Sometimes imputed income is set in place because the judge feels the information provided was inaccurate and/or someone didn't produce enough records, if any at all. If it is the case of someone being uncooperative in the past, and income is imputed, it is very unlikely an adjustment will be made unless there is an "extraordinary" change of circumstance.

Imputed income can be double what a person really makes. So if you are supposed to provide income information and do not comply, this is what happens.
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Old 07-30-2012, 11:28 AM
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Quote:
This amount was based on the arbitrary income of $80,000 as he was a selfemployed at the time support was ordered. Now his income reduced to $48,000 and he is no longer a self employed.
I take that to mean he is earning wages/salary from someone and being paid properly (ie, it isn't under the table).
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