child support question

[leaffandad]

I started paying child support on jan 1st 2013, I based his on my 2011 t4 slips and tax return as per my lawyer. My question is simply, is this correct? my ex wife now says that she contacted FRO and I should be paying 2014 support based on 2014 income, 2015 support based on 2015 income. not sure? I think the way i have done in the past works. i would pay support payments in 2015 based on my assessment and t4 slips from 2013. my income has not changed that much from 2011 till 2014, 51k to 57k, my high coming in 2013. thank you for any help on this issue.

also note my lawyer advised me not to sign up with FRO.

[Straittohell]

The most common practice is take the notice of assessment from the tax year that has just been completed, and set a new support regime for the current year.

It is usually done around June/July

So, for example, in my case, we got our notices of assessment in May for 2013, and effective July, I started paying my ex for the rest of July 2014-June 2015 based on what I earned in 2013.

Now, some folks can have it set up whereby any significant change in material circumstance can result in an 'in year' change.

I changed jobs and took a pay cut this past year. It was a salary job, so we new for 100% certain that it would be my new income for the rest of the year, so my ex agreed to a change. Of course, if I ever get an in-year pay increase, I have to be prepared to reciprocate.

We don't use FRO either. I just send her an e-transfer at the end of every month. Of course, we're relatively amicable, and that is what determines a lot of that.

[stripes]

I think the usual practice is to pay support based on the most recent verified comprehensive income information - which is is usually the most recent tax return. My agreement says the ex and I exchange tax returns and notices of assessment by June 15, and then recalculate. Any changes in child support take effect on July 1. So as of July 1 2014, the amount of offset CS I pay is based on my line 150 from my 2013 income tax return. On July 1 2015, it will change based on line 150 from my 2014 tax return.

Most people go with an annual adjustment to CS rather than a lot of little adjustments during the year, because it's administratively easier. There is no rule that says you must pay CS based on your income in that same month, because you don't know what your annual income will be until the end of the year (and CS is based on annual income). I find it hard to believe that FRO told your wife something different.

[HammerDad]

What does your order say regarding review of c/s? That should set out what should be paid.

Generally, it is always for the year prior. In 2015 you will update your c/s based off line 150 of your Notice of Assessment for 2014 (unless you are self-employed, which does muddy things a bit). In 2016, you adjust based off your 2015 NoA, etc. etc.

Some people, like myself, update my c/s immediately upon changes to my income. I've done this since day one, so this is our routine. My income is pretty easy to determine as I don't get overtime or, for the past 10 years, bonuses. So when I change jobs or get my annual increase, I know my c/s payments are not likely to vary much, if at all from my base salary.

If you get overtime or bonuses, you pretty much have to adjust based off of the prior years income simply due to possible fluctuations in income.

[beentheredonethis]

It would depend if you have a written agreement or not.
If you do, you should be paying retrospectively (ie based on last year's income)
If you do not, you pay based on your current earnings and make a "best guess" on your earnings...

signed...currently getting screwed for doing it wrong.

[rockscan]

When my partner lost his job he saw a lawyer who told him that it is "normal practice" to follow tax returns, any changes in income outside of tax returns means automatic update. The child support guidelines are clear on this too. That states that if your income tax is not a proper indicator of your actual income you use whatever other source to prove it. Like pay stubs, offers of employment etc.

Whenever your income changes, so does your child support but if your income doesnt change, you dont change it. You should have updated when it went from 51 to 57.

[beentheredonethis]

my husband's went from 80 to 20 - he adjusted it accordingly and is now being dinged for arrears

[blinkandimgone]

Don't take legal advice from your ex.

Don't pay a lawyer to give you advice you aren't going to take.

[rockscan]

my husband's went from 80 to 20 - he adjusted it accordingly and is now being dinged for arrears

Its not just about adjusting CS its also about ensuring the adjustments happened and arrears have been calculated. My partner also calculated the arrears he owed based on his income he earned prior to losing his job. He had adjusted based on his income tax but he should have kept it at the amount he was actually earning during the year so he went back and calculated his CS based on his actual income, calculated the arrears for the year and provided it. If you adjusted CS done but werent paying the proper CS based on the 80g then thats why hes dinged for arrears.

[beentheredonethis]

Yes he paid at 80 while making 20 and for 20 when he went back up ...it just didn't quite work out evenly...make sense?

[rockscan]

Thats strange. Sorry about how that worked out. My partner was told to go back and calculate the arrears on his actual income for that time period. His ex refused the cheque and filed with FRO.

[beentheredonethis]

Oh that was kind.
We are hoping for FRO registration after court is done.
the less contact the better

[rockscan]

Hes still on the hook for the arrears though. We're hoping when he finds work he can finalize that, new CS and university expenses so he can get this stupidity off his plate. The refusal to accept arrears just led to a great deal of "dads a deadbeat" from the kids.

[beentheredonethis]

we run parallel lives it seems. 20 months on disability and dad's a deadbeat.