Cost of Living increases

[Sk8r]

In Ontario, is child support automatically indexed?

There is nothing in our agreement that there will be a COLA increase each year but I know at least in PQ this is a mandatory increase.

Anyone know?

[logicalvelocity]

Sk8r,

as you mentioned,

In Ontario, is child support automatically indexed?

In May 2006, the Ontario government changed the guidelines in sync with the federal child support guidelines to basically reflect tax bracket creep of personal deductions.

If you recall, a few years back, under the common sense regime of Mike Harris, The provincial government radically reduced the percentages of payable provincial income tax on income therefore leaving more disposable income.

As a result, the May 2006 guidelines factor in cost of living increases as the calculated payable amount of support would be reflective of there increased total income.

If a court order or separation agreement is in effect the onus would be on the recipient to take steps to vary an existing amount of support to reflect a change in a payor's income. A change in income of the payor would construe to be a material change of circumstance therefore the payable amount of child support should reflect the income change.

In Ontario, it is not done automatically. Your first step is to ask the individual for their income tax return or assessment for the last taxation year(2006) Once you receive same, you could run their line 150 amount against to tables or a Ontario child support calculator that I have available here to determine the payable amount of support.

http://download.jupiter.come2store.c...ator2_2007.xls

You need to download the excel book or you could use "open office" if excel is not available to you. Open office Suite Free download can be found here:

http://www.openoffice.org/


Once you make the calculation, It is your discretion on whether to pursue the matter to renegotiate the payable child support. For most just with the tax bracket creep, The payable amount went up by approximately $50/month not factoring in cola. If the matter is litigated, most likely you will receive the new calculated amount of payable child support. Retroactive amounts to the date of application may also be paid along with court costs.

lv

[Sk8r]

Thanks for the info LV. Our agreement is actually based on the new guidelines from May of last year - as is my new partner's agreement. But in QC there is still a mandatory index each year. He received a pamphlet from the QC equivalent to the FRO reminding him that this years COLA increase was 2.1% and that he should make that increase retro-active to January. I didn't believe that was the case in Ontario. (and I don't believe it will apply to him either since he is a resident of Ontario and pays based on Ontario tables)

[logicalvelocity]

Sk8r,

Quebec has different rules and child support tables. I have difficulty understanding same basically due to the language barrier and most of their information is available in French.

You could ask financial disclosure every year of the individual to review the amount of payable child support.


lv

[Decent Dad]

Wouldn't the payer's income increase due to COL . Or from other raises? Therefore it is built in?

[logicalvelocity]

DD,

Wouldn't the payer's income increase due to COL . Or from other raises? Therefore it is built in?

I believe so.

The CS guidelines don't factor in typical income tax bracket creep of personal deductions or changes in the rates of primary deductions such as EI, CPP. etc. These rates change generally every year.

I do suspect that you will see the CS guidelines revised every few years. It took basically ten years to change the previous CS guidelines. This could be a trend.

lv

[Sk8r]

I suppose it would, but that assumes then that the payor would automatically increase if he/she made more and decrease if he/she made less which we know is not the case.

In my agreement, it would appear that he will just pay the same amount from now until the kids have completed school unless one of us initiates a court review. I am ok with that, but I was surprised that it wasn't the same for QC - although I shouldn't be - they always have to be different.