Ex married a millionaire, doesn't work, S. 7?

[turner]

Hello,

My ex stopped working a couple years ago because she doesn't need to work anymore. She's currently receiving EI benefits due to her 2nd kid's mat leave.

This year she earned 10K in EI payments. I don't know how she receives EI payments if she hasn't been working for a while.

She was probably making about 50-60K when she quit her last job a couple of years ago.

I wouldn't be surprised if she started to pull a low salary from her husband's company. Whether she actually works for the salary, we'll never know but if it's low it will screw me for S.7.

My wife and I make 150K+ combined per year.

Any thoughts on her imputed income for S.7 expenses, if any? I offered 50/50 for the S.7 expenses but she said no. She's saying that her 10K should be used for the proration. Prior to receiving EI payments she was suggesting that I pay for 100% of S.7 expenses since she was unemployed (yet still married to moneybags).

Both of us can afford the expenses but because we're only looking at the parent's income and not the family income, one parent bears the burden. My other concern is a year or two from now when she wants to enroll my son in private school! I'm not paying for this because I don't believe in it and I feel it is beyond our means. Plus my ex and I were never married, never lived together - no decision like this was ever agreed upon prior to seperation.

Thanks!

[billm]

She is obviously living on more than 10K per year. She is being a deadbeat when it comes to section 7 suggesting that 10k or 0K be used as her income.

There is no concept of zero income when it comes to child support and section 7. Everyone is living on some money, and that has to be used to support their child.

Her husband is supporting her and she is a packaged deal, he has to support her and your child.

It seems reasonable to impute an income to her based on her previous salary given that she is not working due to being supported by her husband.

How this plays out in court, I fortunately don't know

As for private school. It is section 7, and as with all things section 7 (except medical/dental), you can refuse to pay. They are 'extraordinary'.

[HammerDad]

Your spouses income is irrelevent as you are employed. Your ex's spouses income is relevent as she is unemployed and being supported by her new spouse.

She is willfully underemployed. Given her previous employment she is capable of earning an income of between $50k and $60k (based off your info). You should request that her income be imputed to such amount. She may try to claim she is now a SAHM, but then you argue that her spouses income be used as an alternative.

If she tries to draw an unreasonable low salary from his company you again argue she is under-employing herself.

I would offer the following, in this order:

1. that s7 be split based of her imputed income of when she was working as she is now under-employing herself;

2. that, due to her under-employment, the household incomes be used in determining s7 as she her standard of living is being maintained by her spouse; or

3. that s7 be split 50/50 as neither household would likely suffer from such a split.

Whether any of them will fly? I don't know. A good lawyer would be highly recommended. Chances are you argue for either 1 or 2 and then settle for 3 or a percentage close to 3.

[HappyMomma]

You likely cannot impute her income while she is on mat leave - she has the right to be home with her child.

However, once her mat leave is complete her income should definitely be imputed based on what she could be making. There are TONNES of cases on Canlii that support this. Just because she decides to stop working does not negate her responsibility to provide for her previous children.

[LotusLand47]

She MAY be splitting income with her spouse - to share taxes. Ask to see her T1. Also she may have investment income (T5s) she is not talking about. I think you are entitled to see this anyways
How much are s7 expenses?

PS: my kids went to private school - if you can afford it, send them.

[HammerDad]

You likely cannot impute her income while she is on mat leave - she has the right to be home with her child.

This is incorrect. Mat leave is option, not mandatory. She can choose to go back to work after birth of the child. Mat leave is protect the workers position at the company and provide a supplemental income. There is caselaw stating that mat-leave is a form of underemployment and, depending on the circumstances, does not cause an automatic decrease in CS.

CanLII - 2000 CanLII 22446 (ON SC)


In the OP's case, she has been off work for sometime as well:

My ex stopped working a couple years ago because she doesn't need to work anymore. She's currently receiving EI benefits due to her 2nd kid's mat leave.

So he could argue that she has been under-employed for years.

[HappyMomma]

This is incorrect. Mat leave is option, not mandatory. She can choose to go back to work after birth of the child. Mat leave is protect the workers position at the company and provide a supplemental income. There is caselaw stating that mat-leave is a form of underemployment and, depending on the circumstances, does not cause an automatic decrease in CS.

CanLII - 2000 CanLII 22446 (ON SC)


In the OP's case, she has been off work for sometime as well:



So he could argue that she has been under-employed for years.

You're reading that Canlii case incorrectly. While on mat leave paid by EI her CS was lowered based on her income. In that particular case she chose to take an additional number of months offered by her employer at NO PAY at which time she expected the 0 income to be used to calculate her CS obligation. The courts will NOT allow this. If you voluntary choose to be unemployed after the one year of mat leave your income will be imputed. There are MANY cases on Canlii that support this.

I am currently in the same position. I will be going on mat leave in Jan and my CS obligation will be reduced accordingly.

[turner]

Thanks for all of the comments. If the S.7 expenses are going to be incurred over the next 3 or 4 months (my income is fairly fixed and hers is I guess zero going forward), would you calculate the proration share based on income being earned over the next 3 or 4 months or based on the most recent Notice of Assessment?
I'm not sure how she qualified for the EI payments in the first place but that's not my concern.

[turner]

She MAY be splitting income with her spouse - to share taxes. Ask to see her T1. Also she may have investment income (T5s) she is not talking about. I think you are entitled to see this anyways
How much are s7 expenses?

PS: my kids went to private school - if you can afford it, send them.

The expenses are relatively minor but I feel that I need to be careful in setting a precedence due to her spending power. I don't want to agree to be paying 80% because it's only a couple hundred bucks now but be stuck paying 80% for the rest of the kid's childhood. She has VERY expensive tastes. Plus her lawyer is putting a lot of pressure on us to agree to this ASAP.... which that in itself makes me question the situation even more.

[NBDad]

Send in a reasonable offer to settle as has been already indicated. In the meantime, if you do not agree to the expenses, don't pay them. Indicate in writing you do not agree to them being incurred.

If you DO agree, stipulate that you agree only with a 50-50 split. That way if she incurs them anyway, she did so with the understanding it was 50-50

[turner]

My ex is now stating that she's not working because she needs to saty home and monitor my son's health issues. He has undergone many tests for digestive problems since he's not gaining weight like a "normal" child and my ex says he's often tired and not sleeping properly. He's now moved to a gluten free diet. The child also shows signs of anxiety - especially when the mother leaves the child behind with the grandparents.

I argue that the kid has dietary/digestive concerns but doesn't warrant 24/7 care from the mother. ie. The mother could work if she needed too... we aren't talking about a physically or mentally disabled.

[NBDad]

How old is the child? Is he in school?

[turner]

How old is the child? Is he in school?

He turns 4 in January. Stays home with mom all day, everyday.

[billm]

My ex is now stating that she's not working because she needs to saty home and monitor my son's health issues. He has undergone many tests for digestive problems since he's not gaining weight like a "normal" child and my ex says he's often tired and not sleeping properly. He's now moved to a gluten free diet. The child also shows signs of anxiety - especially when the mother leaves the child behind with the grandparents.

I argue that the kid has dietary/digestive concerns but doesn't warrant 24/7 care from the mother. ie. The mother could work if she needed too... we aren't talking about a physically or mentally disabled.

Even if she is not working due to this reason, she is being supported by her husband. She has income via this source. This support must be shared with her child, she is a package deal.