April 13, 2006

Canada’s Child Support Guideline table amounts will increase for the first time since implementation in late 1997.

The increases are substantial, and vary depending on the payor’s income.

Some examples?

• A support payor earning $45,000 per year, currently paying $387 per month for one child, will see support increased to $415 – a 7 % increase.
• A support payor earning $60,000 per year, currently paying $823 per month for two children, will see support increase to $902 – an almost 10% increase.
• A support payor with an income of $100,000 per year, who would currently pay $1,613 per month support for three children, will see support increase to $1,825 – a 13% increase.

When support payments actually change will vary depending upon your situation. For some people, a separation agreement may require an annual review of income. For others, support is paid under a court order. Many people have never altered their child support arrangements from pre-guideline amounts! To implement the new table amounts, support recipients must take an active step to either work out a new deal, or update their court orders. The changes will not be implemented automatically.

Support payors should review our Web Tip on Retroactive Child Support and keep a close eye on the Supreme Court of Canada’s upcoming decision on this HOT legal issue.

While this may look like a clear-cut win/win situation for support recipients, substantial increases in child support payments may reduce the support payor’s ability to pay spousal support. Canada’s Child Support Guideline table amounts will increase for the first time since implementation in late 1997.

The increases are substantial, and vary depending on the payor’s income.

Some examples?

• A support payor earning $45,000 per year, currently paying $387 per month for one child, will see support increased to $415 – a 7 % increase.
• A support payor earning $60,000 per year, currently paying $823 per month for two children, will see support increase to $902 – an almost 10% increase.
• A support payor with an income of $100,000 per year, who would currently pay $1,613 per month support for three children, will see support increase to $1,825 – a 13% increase.

When support payments actually change will vary depending upon your situation. For some people, a separation agreement may require an annual review of income. For others, support is paid under a court order. Many people have never altered their child support arrangements from pre-guideline amounts! To implement the new table amounts, support recipients must take an active step to either work out a new deal, or update their court orders. The changes will not be implemented automatically.

Support payors should review our Web Tip on Retroactive Child Support and keep a close eye on the Supreme Court of Canada’s upcoming decision on this HOT legal issue.

While this may look like a clear-cut win/win situation for support recipients, substantial increases in child support payments may reduce the support payor’s ability to pay spousal support.