76. Why Your Income for Taxes May Not Be Your Income for Child Support (or Spousal Support)
Why Your Income for Taxes May Not Be Your Income for Child Support (or Spousal Support)
Parents who pay child support, and some parents who receive child support, are can be very surprised, when a judge, arbitrator, or lawyer acting as a family law mediator, say that a parent’s income for child support is NOT the same as the total income on their tax return on which they pay taxes. This is particularly true when the parent is self-employed, or earns their income by means other than a salary such as through dividends or capital gains. The different way for calculating income for child support can have a significant impact on the amount of child support that is paid. It also affects spousal support, although that can be in even more complicated.
Since income for support can be income for taxes, and since a listener asked, in this episode of the Ontario Family Law Podcast, Certified Specialist in Family Law, John Schuman, explains how Family Law adjusts income when dealing with support. Everyone is paying or receiving support where one parent or spouse earns income that is not reported on a T4, should pay attention to this episode to make sure the amount of support is right!
Share your experiences with losing money – or coming out ahead, in your separation or divorce to supplement what people learn from this important page.