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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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  #21  
Old 01-27-2015, 07:30 PM
Beachnana Beachnana is offline
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Either way. I guess but sure nice to have the refund come through in April.
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  #22  
Old 02-02-2015, 01:34 PM
mcj2012 mcj2012 is offline
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Just to answer a few questions that came up. My ex takes home anywhere between 130k - 160K. However, because she incorporated herself as a consultant, she pays herself only 80K and claims that what I should be using for her income. Hence why I am taking her to court, I would like the courts to use her full income. Our case conference is in May and we have to clear up the self-employed income issue and all the daycare she has claimed for the past 5 years (full amount). Why am I doing this only now? because I was naive and thought that I was to use her T4 amount and that I could not claim any daycare expense or recieve the savings. It was only last year that I came across my rights in terms of child support. 1 year later, she is still not willing to disclose all of her financials. However, I did see her personal income tax returns for the last three years and I saw full daycare claims, all tax credits, fitness credits, arts credits, medical expenses that I had paid half for. I wonder if the judge will go back and give part of those credits I deserved. I suppose I may be dinged for being "naive" about my rights.

Thank you all for your advice. Gotta love this board!
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  #23  
Old 02-02-2015, 01:37 PM
rockscan rockscan is offline
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Technically she should be reimbursing you for your share of those credits. Make sure thats part of your request. If anything, it may reduce any money you have owing or owe in the future.
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  #24  
Old 02-03-2015, 02:02 PM
dinkyface dinkyface is offline
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So at $80K she's getting 33% of her daycare costs back in tax refund, and you are paying 50%, meaning she's only out of pocket for 17%!

And at $100k she's getting 43.4% of her daycare costs back in tax refund, and you are paying 50%, meaning she's only out of pocket for 6.6%!
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  #25  
Old 02-11-2015, 06:32 PM
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maxwellsmart maxwellsmart is offline
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Default After tax costs

Where the individual enjoying the tax deduction or tax credit is self employed and subject to remitting quarterly tax instalments they get the tax break quarterly
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  #26  
Old 03-09-2015, 11:07 AM
mcj2012 mcj2012 is offline
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Does it have to state in your separation agreement that you pay the after tax cost of child care. Currently, our agreement says I pay 50% of the cost of daycare. Her argument is that I am not adhering to our agreement by paying the after tax cost. Is this something that I need to have in my agreement for it to be legal? If I send her the 50% of the invoice cost, I highly doubt I will receive the difference from her once she receives her refund from the government. Has this happened to anyone? is anyone paying the after tax cost of daycare and was it agreed to first, or is this just by law that it has to be done this way? thanks
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  #27  
Old 03-09-2015, 11:53 AM
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My agreement includes the following from
the law. Others can comment as to whether a judge would require that to be in an agreement in order to allow apportionment based on after tax cost. Sorry I don't know
the answer .





7(3) of the law says - Subject to subsection (4), in determining the amount
of an expense referred to in subsection (1), the court must take into
account any subsidies, benefits or income tax deductions or credits relating
to the expense, and any eligibility to claim a subsidy, benefit or income
tax deduction or credit relating to the expense.
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  #28  
Old 03-09-2015, 12:11 PM
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blinkandimgone blinkandimgone is offline
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It's 50% of the ACTUAL out of pocket costs, ergo after tax cost. If she has an issue with it she can take it to court where the judge will explain it to her.
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  #29  
Old 03-09-2015, 12:24 PM
mcj2012 mcj2012 is offline
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She totally has an issue with this. In fact, I received a note from her lawyer stating that I am not adhering to the current separation agreement. So I am wondering if it has to say in the agreement that it's the after tax cost (as right now it says I pay 50% of the cost of childcare), or is her lawyer just clueless as well or just following instructions from client. I agree with you (blinkandimgone), I just can't see how it's fair that after all these years she has gained so much money from something that I was paying for and yet today still does not want to be fair about it. She clearly made money off me. I just wish I knew if I am still within my rights to have only given her the after tax cost this time around. I have not done that in years as I was not aware until of any of my rights until the past year. I am afraid when we confront the judge in may that he will say your ignoring has cost you money!
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  #30  
Old 03-09-2015, 12:50 PM
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Cost is different from price. If I buy a car for $20 000 and then receive a rebate for $5 000, the cost to me is $15 000, even thought the cheque I gave the car dealership was for $20 000. Child care works the same way - the price is what you pay up front, but the cost is the amount of money that you are out of pocket, once you take into consideration all the tax benefits, subsidies, etc. You ex's lawyer is trying to get you to pay the price of child care, while your agreement (and the law) states cost. Tell the lawyer that you are willing to pay half the cost of child care, but that does not mean you are responsible for half the price.
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