Dividends T5

[Divorce]

Are dividends on T5 used to calculate child support?
If so, is there any case where they would not be? (I.e. Dividends beings used to pay business loan)
And what are the consquences if T5 was not disclosures upon financial disclosure in calculating child and spousal support? Can I go after legal costs associated with lack of financial disclosure?
How should I proceed?
Thank you.

[rockscan]

Yes and no. Its a grey area.

For the most part, T5 income used to off set other costs is technically not income, it is being used for other costs. However, if T5 income is just that--income, then yes it is used for cs calculations.

You would have to a)demonstrate it isnt being used as income, b) prove what your actual income is, and c) cross your fingers and hope the judge agrees.

My partner has T5 income annually because he put money away for his share of his kids school expenses. The T5 income is normally $30-75 annually which doesnt make a big difference on his income for cs and he doesnt use his line 150 for calculation anyway. His lawyer said it could be argued that it is not income since its a low amount and the money is only income because he withdrew it for s7 purposes.

Every case is different though. If you have business expenses etc then line 150 wouldnt be an ideal way to calculate cs because your true income would be calculated differently than how cra calculates for tax purposes.

[Desperate_Dad]

No it shouldn't be used as income. You can pay yourself any dividend you want. It can be more than you make or less than you make. In lieu of using dividends, I would suggest using the before tax profit of the corporation. This would be an imputed grossed up dividend. I'm assuming this is a corporate dividend for an individual who owns their own corporation. If its an investment dividend, I would exclude it altogether.