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Recently the mother of our child put him in a Day Care without giving me any notice; we are in the middle of a court case over custody, access and mobility. I had received emails and some general information on the day care providers she was looking into and was told that a decision had not been made but these were some options. I said I would review them and come back with some suggestions of my own. Just the other day I received a letter from her lawyer stating I did not respond to her day care information ,not true I emailed and had a personal conversation with her about it, and that our child has now been placed in a day care where the monthly costs are extremely high (over $920 a month) and that I am personally responsible for 90% of this moving forward. I am not in agreement with this as I was not included in the decision and the time lines of communication from their side have been poor. I learned of this last week and by yesterday the decision was made. And I have been presented with an offer to settle that includes day care expenses. Please help.
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1) Go and find a cheaper daycare in your area that has a free spot. Yesterday. Otherwise, you cannot complain about the 920/mo.
2) Does 10:90 reflect the proportion of your incomes? If not, then just start paying according to that proportion.Last edited by dinkyface; 02-27-2013, 01:48 PM. -
They have not disclosed all the proper financials, even though I have requested it so I do not know the exact proportions between us as her situation has changed since this all began. She has a new job, did not have one prior, it would have been important to be involved when it comes to the decision and considering neither of us could afford this amount of it when I would be responsible for the majority of those expenses. They have done it and basically presented me with my proportion of those costs without any discussions. I am able and willing to look aftert him rather than have him in the day care, hes only 20 months old and access has been restricted from the beginingComment
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Just an observation, but if this is the case, the decision regarding day care was more then likely a time sensitive one.Originally posted by involvedfather View Post
Definately get financial disclosure. Rates for care for a 20m old are higher at most day care places.Comment
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If she has not disclosed up to date financials, then you can counter that you will pay 50% but no more until proper documentation has established the correct proportions.
Also 920 is a pretty standard cost for full time daycare. It varies between 800 to 1100 per month in Ottawa.
As daycare is tax deductible to the custodial parent, you should also insist you pay your share less the tax refund that will go to the custodial parent. The accepted number is generally 25%.
Realize that your ex paying the 920 per month will receive 230 back in income tax refund, so the net cost of the daycare is closer to 690.
You pay your share of that, or 345/month.Comment
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We had a settlement conference a few weeks ago, the Judge felt we were close on a lot of items and has scheduled another settlement conference in a month. In the mean time we were supposed to work on areas to get the deal done, in this particular case the lawyer seems to be causing more interruption than the mother and its creating a lot of strain all around. I am not sure who is being honest and who is playing games. But I will not agree for the sake of settlement if the issues are not in the best interest of our son. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
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I'm curious - how are you available during the day to look after your kid?
I agree with the other posts about the 920 cost being pretty normal, and the 50-50 split (until you get disclosure), and factoring in the tax refund - though if she is low income, the tax refund may be more like 15%. I think it is an income deduction, therefore it depends on the DC payor's marginal tax rate. Also, at most $7000 deduction can be claimed, so maybe the tax refund is only $1050/yr or $88/mo.
A link to the gory details on DC deductions: http://www.cra-arc.gc.ca/E/pub/tp/it495r3/it495r3-e.pdfLast edited by dinkyface; 02-27-2013, 05:13 PM.Comment
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The marginal tax rate is the rate for top few thousand of your income. If someone was earning minimum wage, appx $20k a year, the marginal rate would be about 20%. The average rate would be just under 10%, but this should not be used to look at the value of deductions. The child care would have been off the top, so the value is the marginal rate.
For most people earning average incomes, the marginal rate is usually between 25-33%. The refund for $7000 should be around $2000. That would bring $11k per year down to $9k, which is where you apply the proportional split.Comment
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Plugging the numbers into TaxTips.ca tax calculator, someone in ON with 20K salary, and one dependent child under 5 would get a $720 tax reduction from a $7000 deduction.
TaxTips.ca - 2012 and 2013 Canadian Income Tax CalculatorComment
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I don't know what you entered. From what I enterered, on that website, with a $20k income, tax payable was $2693.
After a $7000 deduction, tax payable was -$579.
The total refund was $1762.
We are obviously approaching this differently.Comment
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I used the 'equivalent to spouse tax credit' for the 5yr old child. That gives total tax/ei/cpp of $140.
Otherwise, I get $2693, like you did.Comment
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Just an observation ..
Many are quick to point out the "after CTB or USSB" credits ... And that's all well and good .. IF ... the other parent actually receives it.
In my case, ex pays full CS & a EOW dad (his choice) .. It's actually a 3x/yr overnight dad the past two yrs but that's moot and his choice ... The point is ... We are both in other relationships and have been for YEARS. I haven't seen a CTB or USSB payment in at least 8 yrs due to my new marriage and my husbands income.
I know ... Shame on me for remarrying well and us having a +100,000 income despite my lowly $30,000 income. Before u feel too bad for my ex and start slurring the bloodsucking comments ... HIS household income is probably $15,000 MORE than mine. So even when u take off his $1,000/mo CS ... his household supports 2 while ours supports 6
If any payor has a ex-spouse who is remarried (or common law) then chances are their CTB is crap unless they are both poverty line earnersComment
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Originally posted by involvedfather View PostIt sounds like you are in a tough situation with a controlling ex. You are behind the 8-ball already. I'm not sure how you are able to care for the child during the day and work at the same time.Originally posted by involvedfather View Post
There are many things you need to do depending on what outcome you desire (time you spend with child, what you have to pay to the ex, etc, etc). The key is to prevent the ex from taking control, which she already has now, thus giving her a good court case to limit your parenting rights.
Best for you to get legal representation and start fighting for your rights before she takes them away. Use this site to post separate threads on your situation for advise.Comment
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You have joint custody? Go get him from the daycare, and then refuse to pay for a service you aren't receiving.
Warning though, this is a bit on the edge of aggressive and assertive, and may not go over well with the ex!Comment
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Even if there is joint custody, when there is a specific access schedule how can he pick up the child during her access time?Comment
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