Child Support: The Basics
Child support in Ontario is often settled by the parents of the child by agreement. The Federal Child Support Guidelines help guide parents to come to reasonable agreements. The Guidelines provide detailed instructions on how child support should be calculated for incomes of $150,000 and under. The Guidelines’ tables are available on our website to help you determine child support amounts.
Since the Guidelines were introduced in 2006, the calculation of child support has changed. Support is calculated based on each parent’s gross income, which includes stock options, bonuses and shares.
Applying for Child Support
A parent can apply for child support at any time after separation. It is customary to apply for support immediately after separation or as part of the divorce application. Even if child support is not sought at first, you can apply if your situation changes and you feel you need the support at a later time.
Obligation to pay child support
Part III of the Family Law Act deals with support obligations. It requires parents to support all of their dependant children. This is required as long as the child is a minor (under 18) or enrolled in full time education. Children with disabilities may remain dependants, and thus be entitled to support, beyond this point. Child support may be a legal obligation even if the parents of the child were never legally married. A person may be obligated to pay support even if the person is not the biological parent but has stood in the place of the biological parent.
Amount of child support
As explained above, the amount of child support can be gleaned from the Guidelines. Who has legal custody of the children does not matter for support, but the amount of time spent with each parent does. The Guidelines stipulate that, where a parent spends more than 40% of the time with a child, the court must take into consideration the amount set out in the applicable table in the Guidelines, the increased cost of living in a shared custody arrangement and the condition, means and needs of the parents and child.
Child support and taxes
Agreements or court orders for child support made after April 30, 1997 are not subject to tax for the parent receiving the support. It is not included in the receiving parent’s taxable income and the parent paying support may not deduct it from their taxable income. Orders and agreements made before this, however, are subject to the old rule, where parents receiving support would pay tax on the amount received and parents paying the support could deduct such payments.
Enforcement
If child support is not paid, the court has many options it can use for enforcement. Enforcement is done through the Family Responsibility Office (FRO), a provincial government office that receives all court orders for support. If you come to an agreement about support, you can also file this with the court in order to have FRO help you enforce it. Paying parents then make all their payments to FRO, who then sends the money by cheque or direct deposit to the parent who is owed support. If payments are outstanding, FRO can receive owed support by having payments deducted from the parent’s wages, registering a charge against the parent’s personal property, or garnishing bank accounts. If support remains unpaid, FRO can suspend the parent’s driver’s licence, report the parent to the credit bureau or cancel their passport.
Varying support
Support can be changed. If both parents agree to change an agreement for child support, the process is simple. The parents can change their existing agreement or make a new agreement. The new agreement must then simply be filed with the court and mailed to the FRO for enforcement.
A court order can also be changed but only by the court. A change to child support will only be made by the court if there has been a material change in circumstances. Cases in which this may occur include: significant decrease in the paying parent’s income, the child has withdrawn from parental control or has moved houses, or the child has additional expenses (i.e. medical expenses).
Since the receiving parent’s income is not generally taken into account when making an order for support, it is similarly not considered for a change. So, a great increase in one parent’s income does not mean they no longer will receive support for their child.