Announcement

Collapse
No announcement yet.

commission based job child support calculation

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • commission based job child support calculation

    For someone who works for a commission based only job ( no base salary) eg: sales, broker, etc...how is the child support calculated based on their fluctuating income?

    Anybody has experiences with this?
    Last edited by divorcing mama; 02-04-2015, 12:30 AM. Reason: clarifying terms

  • #2
    I don't have direct experience with it. The government likes to make it equal monthly payments.

    It should be noted that line 150 income can be reduced by deductible employment expenses. Salespeople have a lot of these - home office space, vehicle expenses, etc.

    FLC Cases and Comments: Determining Income Under The Child Support Guidlines

    Comment


    • #3
      Originally posted by divorcing mama View Post
      For someone who works for a commission based only job ( no base salary) eg: sales, broker, etc...how is the child support calculated based on their fluctuating income?

      Anybody has experiences with this?
      Typically support will be paid on the previous year's income. In April/May the parties exchange tax returns and calculate the new amount going forward. The new amount would start June 1.

      If there is a large fluctuation in the income then the first time it is calculated it is common to use the previous 3 years of tax returns to get somewhat of an average.

      My agreeement also states that when we recalculate we also calculate any over/under payment. The over/under payment can be paid in one payment or split over the next 12 months.

      Comment


      • #4
        I find this of personal interest - my ex was in real estate on a very part-time basis and managed to bring in on average $40k per year (pre-expenses/deductions). After deductions though her take home was always under $20k on paper (say line 150). She is refusing to use any amount other than line 150 for determining child and spousal support amounts. I realize a judge could impute earnings to her but would like to avoid the cost/delays a court hearing would take.

        Comment


        • #5
          FCSG has information on what happens if line 150 is not a good indicator of income. It outlines that you are to use other proof of income to calculate especially for people who are commission based, own their own business or are shareholders.

          Comment

          Our Divorce Forums
          Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
          Working...
          X