Child Support Guidelines: A Guide or a Golden Rule for Incomes Over $150,000?

• 
  Katrina Wiegers
  Lawyer

Child support in Canada is based on the Federal Child Support Guidelines, which set a table amount depending on the paying parent’s income and the number of children they are supporting. However, in cases where the payor’s income exceeds $150,000, deviations from the guideline amount may be considered. In this blog,

Child Support Guidelines: A Guide or a Golden Rule for Incomes Over $150,000?, we explore when and why child support may deviate from the prescribed amounts and the factors courts consider in these situations.

The Guidelines

The Federal Child Support Guidelines establish an amount which is presumed to be the standard, parents with incomes above $150,000 have the opportunity to argue against it. A parent seeking an order different from the table amount must show that the table amount is inappropriate for the particular child or children involved.

The Supreme Court’s ruling in Francis v. Baker (1999) provides significant guidance on this issue. The Court ruled that trial judges have discretion to either increase or decrease the table amount of child support if they believe the amount is inappropriate. However, there is a presumption that the table amount is correct, and the parent seeking to depart from it bears the onus of proving this with “clear and compelling evidence.”

This means that the payor must demonstrate, to a high standard, that the table amount does not adequately reflect the child’s actual needs. Simply arguing that the amount is too large is not enough–there must be a compelling reason to depart from it.

When to depart?

Section 4(b)(ii) of the Guidelines stresses that child support must reflect the “condition, means, needs, and other circumstances” of the children in question. This provision acknowledges that the standard of living of a child can vary significantly based on the parents’ financial situation.

For children of wealthy parents, reasonable needs can include discretionary expenses such as private schooling, extracurricular activities, and luxury items. However, if the recipient parent’s budget for the children includes excessive or inflated expenses, the court may find that the table amount is too high. Child support is meant to cover the child’s actual needs, not to serve as a transfer of wealth between parents.

Caselaw Example

In Merrit v. Merrit (2010), the father, who earned $500,000, successfully rebutted the table amount by demonstrating that the mother’s budget for the children had been arbitrarily inflated. The court noted significant increases in expenses such as daycare, clothing, and children’s activities that appeared unreasonable given the children’s actual needs. As a result, the court reduced the child support payment from the table amount, finding that the mother’s budget was not reflective of the children’s true needs.

If you are facing a situation where child support may deviate from the guidelines, it is essential to consult with a family lawyer who can help you navigate this complex issue and build a strong case for your circumstances. The family law lawyers at McKenzie Lake Lawyers are here to help.

If you require assistance with any Family Law matter, speak to a Family Lawyer at McKenzie Lake Lawyers LLP by calling (519) 672-5666.