Federal Guidelines

The Federal Child Support Guidelines set out a table amount of child support based on two factors: the payor parent's gross annual income and the number of children. The table amounts are set out in Schedule I of the Guidelines and vary by province (because provincial tax rates differ). The table amount is the base amount of child support — it covers the child's everyday living expenses. On top of the table amount, parents may also share special or extraordinary expenses (Section 7 expenses) in proportion to their incomes. The Guidelines are designed to be straightforward: look up the payor's income and the number of children, and the table gives you the amount.

The payor's income for child support purposes is their total income from all sources as reported on line 15000 of their federal income tax return, with certain adjustments. Adjustments may include adding back non-cash deductions (like RRSP contributions or union dues), including income from a corporation the payor controls, or imputing income if the payor is intentionally underemployed or unemployed. If the payor's income fluctuates (for example, because they are self-employed or work seasonally), the court may average income over several years. Both parents are required to disclose their income annually.

When a child spends at least 40% of their time with each parent (shared parenting time), the standard table amount does not automatically apply. Instead, the court has discretion to set child support based on the table amounts for both parents, the increased costs of shared parenting, and the conditions, means, needs, and other circumstances of each parent and child. In practice, courts often calculate the difference between what each parent would pay if the other were the payor, and order the higher-income parent to pay the difference. The 40% threshold is calculated over the course of a year, not week by week.

Section 7 of the Guidelines deals with special or extraordinary expenses that are shared between parents in addition to the base table amount. These expenses include: childcare costs necessary for the payor or recipient to work or attend school; the child's portion of medical and dental insurance premiums; health-related expenses not covered by insurance (orthodontics, therapy, glasses); extraordinary extracurricular activities; and post-secondary education costs. Section 7 expenses are shared in proportion to each parent's income — if one parent earns 60% of the combined income, they pay 60% of Section 7 expenses. Both parents must consent to extraordinary expenses before they are incurred, or the court may not order sharing.

In rare cases, a parent can claim that paying the table amount would cause undue hardship. Undue hardship is a high threshold — it is not enough that the payments are difficult. Grounds for undue hardship include: unusually high debts incurred to support the family before separation; unusually high access costs (for example, if the payor must travel long distances to exercise parenting time); a legal duty to support another child or person; and a legal duty to support a child from another relationship. Even if undue hardship is established, the court will only reduce support if the payor's household standard of living is lower than the recipient's.

Both parents are required to disclose their income to each other every year so that child support can be adjusted if income changes. The obligation to disclose applies even if there is no court order requiring it — it is built into the Guidelines. If a parent refuses to disclose their income, the other parent can bring a motion to compel disclosure. Courts take income disclosure seriously and may impute income (assume a higher income than reported) if a parent is not forthcoming. Keeping child support current with actual income is important — arrears can accumulate quickly if support is not adjusted when income increases.