How is Child Support Calculated in BC?
How is Child Support Calculated in BC?
Child support after a divorce is determined by the Federal Child Support Guidelines. Each province has a table that helps you determine the monthly amount payable—you can see the table for British Columbia here.
The amount of child support payable after a divorce is based on the payor’s annual income and the number of children in the family. If the payor does not live in Canada, then the calculations are based on the table in which the payee lives.
Exceptions to Standard BC Child Support Amounts
There are exceptions to the amounts provided for in the tables, including:
If the payor is not the biological parent.
If a child is over the provincial age of majority (19 in BC).
If the payor earns an income of more than $150,000.
In split custody arrangements where each parent has custody of one or more of the children.
In shared custody or access arrangements where a child spends not less than 40% of the year with each parent.
Where undue hardship arises and the household income of the party asserting undue hardship does not exceed that of the other household.
Where there are consensual arrangements in place.
Section 7 Expenses
The payor may also be required to pay special or extraordinary expenses also known as “Section 7 Expenses.” The person receiving the special expenses must show that the expenses are reasonable and necessary.
Special expenses can include:
Child care expenses incurred as a result of employment, illness, disability or education or training for employment of the spouse who has the majority of parenting time.
Medical and dental insurance premiums.
Health-related expenses including orthodontic treatment professional counselling provided by a psychologist, social worker, psychiatrist or any other person, physiotherapy, occupational therapy, speech therapy and prescription drugs, hearing aids, glasses and contact lenses.
Expenses for primary or secondary school education or any other educational programs.
Expenses for post-secondary education.
Expenses for extracurricular activities.
If a spouse is underemployed, or unemployed, the court can impute income, or assign an amount of income to a spouse under certain situations:
If a spouse is intentionally under-employed or unemployed.
If a spouse is exempt from paying federal or provincial income tax.
If a spouse lives in a country that has rates of income tax that are significantly lower than those in Canada.
If it appears that income has been diverted.
If a spouse’s property is not reasonably used to generate income.
If a spouse has failed to provide income information.
If a spouse unreasonably deducts expenses from their income.
If the spouse derives a significant portion of income from dividends, capital gains or other sources that are taxed at a lower rate than employment or business income or that are exempt from tax.
If a spouse is a beneficiary under a trust and is or will be in receipt of income or other benefits from the trust.
Child Support Calculations for People who Earn over $150,000
If you earn more than $150,000, you may be ordered to pay the basic amount on the table of your first $150,000. For the income over $150,000, the court can either:
1) calculate an amount based on a percentage, or
2) calculate an amount on a discretionary basis taking into consideration the child’s condition, means needs and other circumstances and the financial ability of each parent to contribute to the support of the child.
This means that the court can increase or decrease the amount, based on the needs of the child.
In addition, you could also be ordered to pay special or extraordinary expenses also known as “Section 7 Expenses" as mentioned above.
If you need help calculating child support payments, please contact us for an initial consultation.
Want to learn more? Please contact us for a consultation.
The material provided in this blog is for general information and education purposes only and does not contain, and should not be construed as containing, legal advice applicable to a particular set of facts. If you require legal advice, please contact us for a consultation with one of our experienced family law lawyers.
