What is My Child Support Income? BC Child Support Guidelines

Income for the purposes of child support is not always what you earn. In situations where you have to pay child support, you should first determine what your true child support income is as per the BC Child Support Guidelines. Here are 3 things to know about child support income:

3 Things To Know About Income:

1. It is your Gross Employment Income Not Net Income For Child Support

If you are employed by a company, saying that you have to pay so much taxes and that you have a lot of living expenses is not quite going to cut it. For determining your income based on the BC Child Support Guidelines when you are employed, only your gross income will count.

The Court usually will look at your Notice of Assessment, T1 Generals or T4s to determine your Guideline Child Support Income.

The Court will often take your most recent income level in to account. If your income fluctuates, the Court will take the average of the last three years of your gross employment income.

2. If you are Self-Employed, you can Deduct your Work Expenses, But Don’t deduct too Much

It is always amusing when self-employed litigants show to up to Court and say they earn $15,000 a year while driving a luxury car and spending thousands of dollars on “meals and entertainment”. The Family Court will not always accept the income you report to the CRA. The Court may embark in its own inquiry to determine your true income, and trust us, nothing annoys judges more than underestimating income when it comes to children.

The Court may ‘add back’ business expenses you claim in your taxes or may impute income to you based on a finding that your have under-reported your income or are intentionally underemployed.

3. Some Income May Not Be Included for Child Support Income

Most recently, the BC Court of Appeal case of Brown v. Brown, determined that certain dividends paid out to the payor or a payor’s interest in a corporation should not be included for the purposes of income (or future income).

In short, if one year you earn an unusually high income which will likely not repeat, or have no choice but to invest a part of your income in shares or dividends that do not instantly pay off, you may be able to deduct that income from your child support income and pay less child support.

Once your income is determined, the court will refer to the Child Support Calculator to determine your monthly child support obligations.

For Questions or to Set Up an INITIAL CONSULTATION regarding your Child Support Rights or Obligations, contact us at 604-974-9529 or email info@ylaw.ca