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  • recalculation clause

    In June there is a clause to recalculate.
    its NOT an order but an agreement signed off by both of us w lawyers present. There is no final order as my ex ignores and refuses to sign off, no reply no info as to why. The binding agreement was signed off by my ex. in 2013.

    This clause is based on financial disclosure. I ask for the last paystub of the year in January of each year, I ask for T4, and full NOA. I don't get this unless its days prior to a case conference. I get a mishmash of weird pages in French, but can get a basic idea of income.

    One thing that has come to light....Is that my ex gets a huge bonus each yr. about $25-30,000.
    this usually happens in March/April of each yr....but he does not disclose it. then the following year u see it come with the income recalculation.
    He says he doesn't need to disclose this.
    I disagree as he know what it is before June and should be added to his income...not a year later! child support would be based on untrue numbers and behind each yr.

    Am I stupid in believing that this would be disclosed for the year it happened in? I got some sparse papers showing his income this yr for 2015 is 202000 BUT that's based on last yrs bonus of 2014 and skipping the bonus given for 2015.

    Anyone have some thoughts or guidance to help me along and possibly save me legal fees?

  • #2
    I could be wrong about this as I'm not familiar with how bonuses show up on t4 etc, but would you not be best serve by going off what his t4 and NOA state ? His bonus for each year has to show up somewhere on those as income. Theoretically your always going to be off a year regardless as a payor is always paying this years support based on last years income.....

    Also if he receives a bonus in marh April of 2015 based on something related to his 2014 year, I'd say it's best counted as 2015 income not 2014 based on when he recieved it

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    • #3
      Hmm, it just defeats the purpose of waiting for June to get that info in for the present year of calculations. January to Dec 2015.
      So basically I'm running on last yrs figures to pay this yr 's expenses?

      I think its at a point it should just all be garnished with a set amount and an automatic increase each yr. It does my head in.

      Comment


      • #4
        My husband exchanges tax forms by June 1st and new CS starts in July. So come July 1st, he is paying CS off his 2015 income, even though its 2016. Most SA work this way. You usually go off of current income when first calculating for CS and then its updated annually.

        His bonus even if it was for 2015 would show up on his 2016 taxes. The way you are proposing you would have to subtract his 2014 bonus and add his 2015 bonus to his taxes since his 2014 bonus would show up on his 2015 taxes.

        Gets way to confusing. Use the line 150 every year and save yourself the headache.

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        • #5
          ^^^ This is pretty standard. Changes in CS often lag behind changes in income. Typically people use the most recent available tax information - so if you recalculate every year for July 1, you use information from the tax year 2015. This means that you have to wait a year for the increases in your ex's income to show up in CS, but it also means that if his income decreases, the impact of that decrease doesn't affect you immediately either.

          I agree with Berner_Faith, using line 150 is the way to go.

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          • #6
            Your post is a little confusing. You have an agreement for child support and annual financial disclosure? Thats an order and can be filed with the court for enforcement. Most agreements have a clause that you can ask for disclosure once per year. If your agreement states you update in june then you wait until june. If you know he has had a change in income during the year and its significant and shouldnt wait until june then you can ask. Hes ignoring you because you keep asking. He is obligated to share updated information and not hide money. To get that info you may need to file a motion for financial disclosure. If youre wrong though he can ask for costs. Hes right that if hes disclosing the bonus the following year that he doesnt need to tell you.

            Your best bet is to either file the interim agreement with a maintenance agency (FRO or MEP) and then finish off your other filings.

            You may also want to request a monthly amount for s7 if hes reluctant to pay you for requests. But this isnt pizza days etc. On 200g a year hes paying a high cs amount and all that is covered.

            Comment

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