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  • Child Support Arrears

    I am in the process of negotiating a settlement offer. In the first case conference we had the following agreement regarding child support:

    "The Respondent shall pay the Applicant child support in the amount of $579
    per month based on an annual income of $62.266 commencing August
    01,2019"

    I have been paying $579 ever since and there are no arrears. In 2019 my annual income $74,841.72. Today I received a revised offer to settle and on the child support clause, she stated the following:

    "For the period of May 1, 2019, to December 31, 2019, the Respondent
    owed to the Applicant, child support in the amount of $698.91 per month,
    based on an annual income in 2019 of $74,841.72 for the child.

    - The Respondent paid $680.00 from May 1, 2019, to July 31, 2019
    - The Respondent paid $2,895.00 from August 1, 2019, to December
    31,2019
    - In total, the Respondent paid $3,575.00 in child support for 2019
    - The Respondent owed $5,591.28 for child support in 2019.
    - The Respondent owes the Applicant $2,016.28 in child support arrears
    - For 2019 and shall pay the arrears within 60 days or via a payment
    plan agreeable by the parties and confirmed in writing. If the parties
    are unable to confirm a payment plan within 7 days of the execution
    of this offer to settle, the arrears shall be enforced by the Family
    Responsibility Office.

    My question is do I have to pay the arrears for 2019?

  • #2
    Yes. If your income for 2019 is known then 2019 is recalculated with that amount.

    If you know what your income is supposed to be for 2020 you can counter offer that amount for ongoing support in your offer.

    Comment


    • #3
      Thank you, I am running away from my Financial obligations towards my child.

      Comment


      • #4
        Originally posted by guydeluxe2018 View Post
        Thank you, I am running away from my Financial obligations towards my child.

        Are you joking?

        Comment


        • #5
          Originally posted by guydeluxe2018 View Post
          Thank you, I am running away from my Financial obligations towards my child.

          Are you joking with this post or being sarcastic?

          If you know your income will go up or down for 2020, get something in the offer now. As in, the respondentís current income as per his 2019 T1 return is $75,000 but is expected to be $65,000 for the year due to current lay offs. As such, child support beginning jan 1, 2020 is set at $xxxx. If the respondent sees an increase in income or secures additional employment, he agrees to increase monthly child support immediately with that income used for child support purposes.

          Comment


          • #6
            Sorry Rocksan, I left out "not", I am not trying to run away from my financial obligation

            Comment


            • #7
              Originally posted by guydeluxe2018 View Post
              Sorry Rocksan, I left out "not", I am not trying to run away from my financial obligation

              Lol

              It seems strange how to calculate but when an annual income is known then you use that to calculate previous years arrears.

              The best way to avoid a steep amount is to try to estimate your income if it is expected to be higher. For instance you have an income of $60,000 but you know you will have a bonus or commission of say $5,000 by end of year, use $65,000 as your income to calculate.

              Comment


              • #8
                Thanks Rocksan

                Comment


                • #9
                  Every July 1 reset CS for next 12 months based on last year NOA
                  No arguments
                  No adjustment
                  Commonly used and court approved

                  Comment


                  • #10
                    Perfect, thank you, much appreciated.

                    Comment


                    • #11
                      Originally posted by guydeluxe2018 View Post
                      Perfect, thank you, much appreciated.
                      Get it in minutes of settlement. Catch up any arrears or credit due the first time. Only risk is if you plan to retire you will pay on higher income for one full year.
                      You are more than welcome.

                      Comment


                      • #12
                        Originally posted by Abba435 View Post
                        Every July 1 reset CS for next 12 months based on last year NOA
                        No arguments
                        No adjustment
                        Commonly used and court approved

                        His first question was in reference to an offer to settle. Stop posting advice that isnít relevant to the question asked. Their agreement or new order will outline how support is recalculated. For now he was trying to determine if he actually had arrears.

                        Comment


                        • #13
                          Hi Rocksan


                          Is the following statement true? "Retroactive support is ordered when there is no prior agreement or court order in place. In this situation, the payor spouse is not in breach of any order or agreement. The recipient spouse is asking for support that was not previously order or agreed to. Retroactive support would be the amount ordered or agreed to be paid for the period not previously covered by an order or agreement"

                          Comment


                          • #14
                            Yes.

                            You guys are currently in the process of reaching an agreement and because you owe cs and your 2019 income is know then you owe the amount based on your actual income for that year.

                            Comment


                            • #15
                              Thanks Rocksan.

                              Comment

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