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  • Spouse lying about income

    Hi,

    I am currently going through the mediation process. My spouse and I have an issue with extra support payments to help pay for daycare. She claimed that she is only making $2700/month net and needs extra money from me for daycare. I make $4100 a month net and after paying her a support payment of $1100, (two kids, one in school and on in daycare) I don't have much to live on in Toronto. She wants an extra $400 a month and I have agreed to pay only $300. After I agreed to this amount I found out that she got a promotion and a substantial raise. She now makes $3600/month net. She hasn't disclosed this information.

    I want what's best for my kids but I don't want to be taken advantage of. Am I being fare to say I will only pay child support. Also, is the $200 a month for Universal Child Care Benefit effect my child support payment.. for example if I pay her $1100 a month, do I deduct the $200 and only pay her $900?

    Thanks you


    deanp

  • #2
    You should base all support payments, including special expenses (which daycare is I think), on actual income - ie use tax returns. The amounts paid should be specified by a simple formula (ie. CS tables, ratio of income, line 150 of tax return etc). The amounts and ratios are automatically adjusted each year, either by adjusting what should have been paid, or simply adjusting for the future. This can be done in July perhaps when you each receive your CRA notice of assesment.

    That way it is simple math and fair. The only way it is not fair is if one hides income by not reporting it on their income tax.
    Last edited by billm; 05-28-2009, 01:21 PM.

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    • #3
      The UCTB is not included in income and is not to be used when calculating daycare expenses (silly when it specifically states in its description that it is to help offset daycare). You should be paying your pro rata portion of AFTER TAX daycare. Your ex will receive an income tax deduction when she claims daycare. Calculate her before daycare return with the after daycare return. Whatever the difference subtract that off the gross amount paid for daycare and then calculate your percentage based on your respective incomes. Hope that's straightforward enough.

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      • #4
        The UCCB as far as I know included as income for tax purposes so I would assume it would be included as income for the purpose of a financial statement. I included it on my financial statement and documented for the purpose of disclosing my tax return for that year to show the inflated income. In my case I had it all grouped into one year because I filed for 2 years after my child was born.

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        • #5
          Oops. Phoenix is right. It is considered income when calculating line 150 on your tax return.

          Comment

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