1. The Foundation: Understanding the Child Support Guidelines

In Ontario, child support is determined by the federal Child Support Guidelines. These rules apply to parents whether they are divorcing under the federal Divorce Act or separating under Ontario’s Family Law Act.

The Guidelines are a set of rules and tables designed to ensure that child support amounts are consistent, predictable, and fair. The goal is to create a system where children continue to benefit from the financial means of both parents after they separate. The calculation has two primary components, which are explained in the sections below:

• The Table Amount: The base monthly payment for child support.
• Special or Extraordinary Expenses: Additional costs that are shared between the parents.

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2. The Starting Point: Calculating the "Table Amount"

The "Table Amount" is the base monthly amount of child support. The calculation is a straightforward starting point based on a simple formula.

It is determined by looking up the paying parent's gross annual income in the official Child Support Table for Ontario and cross-referencing it with the number of children they are required to support. It is important to note that the income of the parent who receives the support is generally not used to calculate this base amount.

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3. Defining "Income": It’s More Than Just a Paycheque

Determining a parent's "income" for child support purposes is a critical step and can sometimes be complex. While the process often starts with the total income reported on line 150 of a person's income tax return, a court has the power to adjust this figure to reflect the parent's true financial situation.

The court can "impute" income, meaning it can attribute an income to a parent that is different from what they report. This may happen in several situations, including:

• Intentional Under-employment: When a parent is deliberately earning less than they are capable of earning.
• Diverting Income: If a parent redirects income through other people or corporations to reduce their child support obligation.
• Corporate Income: If a parent is a shareholder, director, or officer of a corporation, a court can scrutinize the corporation's pre-tax income. To determine the parent's true available income, the court has the authority to add back certain amounts paid from the corporation—such as salaries, wages, or management fees—to non-arm’s length parties (like family members or related companies).
• Failure to Disclose: Full and honest financial disclosure is mandatory in family law. If a parent refuses to provide the necessary financial information, a court has broad powers to impute an income and make an order based on the available evidence.

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4. Beyond the Basics: Special or Extraordinary Expenses (Section 7)

The basic Table Amount covers essential costs like housing, food, and clothing. However, some child-related costs fall outside this base amount. These are known as "special or extraordinary expenses" under Section 7 of the Guidelines. For an expense to qualify, it must be both necessary for the child’s best interests and reasonable in relation to the parents' combined incomes and the family's pre-separation standard of living. A court will consider if the expense is "extraordinary" given the parents' financial circumstances before ordering a contribution.

Key examples of these expenses include:

• Child care costs necessary for a parent's employment, illness, disability, or education.
• Medical and dental insurance premiums for the child.
• Extraordinary expenses for extracurricular activities.
• Expenses for post-secondary education.

These expenses are shared by the parents in proportion to their incomes. The cost is added to the base Table amount paid each month.

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5. Adjusting for Shared Parenting Time

A common question arises when children spend a significant amount of time with each parent. For child support purposes, a "shared parenting" arrangement exists when a child lives with each parent at least 40% of the time over the course of a year.

When the 40% threshold is met, the calculation becomes more nuanced. The analysis typically starts with a "set-off" calculation: determining the Table amount each parent would pay to the other, and subtracting the lower amount from the higher one. However, this set-off amount is only the starting point. The Supreme Court of Canada, in the landmark case Contino v. Leonelli-Contino, clarified that a judge must then adjust this amount by considering:

• The increased costs associated with a shared parenting arrangement (e.g., maintaining two households for the child, including clothes, toys, and equipment).
• The specific financial conditions, means, and needs of each parent and the child.
• The goal of ensuring the child's standard of living is reasonably similar in both homes, preventing significant lifestyle disparities.

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Calculating child support in Ontario is a formula-based process that begins with the Child Support Guidelines Tables. However, this base amount can be adjusted to account for special expenses, unique income situations, or complex parenting arrangements.

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Ultimately, it is crucial to remember that child support is the legal right of the child. The entire system is built on the fundamental principle that children should be financially supported by their parents, even after separation. The foundation of a fair child support arrangement is full and honest financial disclosure. Navigating the nuances requires careful attention to detail and a clear understanding of your rights and obligations.Get Expert Legal Advice on Ontario Child Support

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