Income Determination for Child and Spousal Support Purposes

Learning Objectives

• To review and discuss the income determination provisions in the Child Support Guidelines, including information used to calculate retroactive support.
• To discuss the treatment of capital gains, dividends, carrying charges, etc.
• To inspect the treatment of fluctuations in income.
• To review the treatment of self-employment income, whether a sole proprietorship or through a corporation.
• To explain the treatment of tax-exempted income, tax savings on types of income, and different tax rates when imputing income to a payor.
• To identify key differences in the treatment of income from the Income Tax Act, such as some expenses deducted from income.
• To analyze how a payor can have a different income for child support vs. spousal support.
• To review the relevance of Income Valuations/Reports.

Course Description

This course is valid up to February 5th, 2025 for FP Canada Professionals. It is advisable to complete this course before that to get the credit on time.

This course is valid up to August 28th, 2024 for CDFA Professionals. It is advisable to complete this course before that to process the credit on time.

This course is valid up to December 31st, 2024 for CFP Professionals. It is advisable to complete this course before that to process the credit on time.

Did you know that some allowable deductions to a payor’s income under the Income Tax Act, RSC 1985 c. 1 (5th Supp.) can be added back and grossed up when determining a payor’s income for child support?

If you didn’t, you’re not alone.

It is a common misconception that the income as reported on a payor’s tax return is always the income that is used to calculate the amount of child and/or spousal support (aka alimony or maintenance) payable. Rather, there is a whole set of rules used by lawyers and the Courts across Canada, some of which do not align with the provisions of the Income Tax Act.

We review topics like capital gains, dividends, bonuses, allowances, RRSP withdrawals, and termination packages, the approach to income determination concerning corporate pre-tax income, and when income may be imputed. 

Having a deeper understanding of what may be considered income and how much income may be treated in family law whether the payor is employed, self-employed, a partner, a beneficiary, or a shareholder, etc. can enhance the value of the services you provide as a financial professional.

This online CPD course will attempt to explain Income Determination for Child and Spousal Support Purposes in Canada.

Key Topics Covered: 

• Child Support 
• Spousal Support
• Child support guidelines
• Calculation of Annual Income
• Compare to Section 1 of Schedule III
• Spousal Support Advisory Guidelines (SSAG)

Overview

• Want to learn more about and spousal support?

  6 mins
• Adjustment for losses

  13 mins
• Understanding the rationale behind s.18

  20 mins
• Compare to section 1 of schedule III

  39 mins
• Spousal support advisory guidelines (SSAG)

  46 mins