Child support is an essential aspect of family law in Alberta, ensuring that children have the resources to meet their needs, regardless of the parents’ relationship status. When parents separate, child support in Alberta becomes the child’s legal right. Parents cannot waive a child’s right to child support.
Guideline Income
In Canada, child support is governed by the Federal Child Support Guidelines. The calculation starts with determining each parent’s guideline income, which means their total gross income available to support the child.
For parents who earn only employment income, their guideline income generally matches the total income reported on their tax return. When a parent is self-employed or owns an interest in a corporation, additional analysis is required to determine their guideline income.
Parents have an obligation to exchange financial disclosure, including tax documents, recent payroll slips, and corporate records, to ensure that their guideline income is accurate.
Primary vs. Shared Parenting
After determining each parent’s guideline income, the next step is to determine whether there is a shared parenting arrangement or whether one parent has primary care. For one parent to have primary care of the child, they must have 60% or more of the regular parenting time. If both parents have more than 40% of the regular parenting time, that is considered a shared parenting arrangement.
Primary Care – Section 3 Child Support
When one parent has primary care of the child, the other parent will be the payor of monthly child support. Section 3 of the Federal Child Support Guidelines and the related Child Support tables, set the payor’s monthly Section 3 child support amount based on their guideline income.
Except in extreme circumstances, the Section 3 child support amount is fixed and is only changed when the payor’s guideline income changes.
The Section 3 monthly child support amount is intended to provide support for the child’s shelter, food, clothing, regular school fees, and other necessities.
Shared Parenting – Section 9 Child Support
In shared parenting arrangements, both parents are the payors and recipients of child support. Under Section 9 of the Federal Child Support Guidelines, the calculation of monthly child support takes into account several factors:
- The difference between each parent’s Section 3 child support amounts based on their guideline income;
- Any increased costs that one parent is disproportionately incurring as a result of the shared parenting arrangement; and
- The conditions, means, needs and other circumstances of each parent and the child.
In many cases, parents may choose to simply pay each other their respective Section 3 child support amounts, which results in one parent receiving more monthly child support. However, it’s important to consider all of the factors when determining the most appropriate child support arrangement. For example, child support in Alberta may need to be adjusted if one parent has significantly lower monthly expenses—perhaps due to re-partnering or other lifestyle changes.
Special or Extraordinary Expenses – Section 7 Expenses
Regardless of the parenting arrangement, the monthly child support amount is not intended to cover all expenses for a child. Section 7 of the Federal Child Support Guidelines sets out these special or extraordinary expenses, which include:
- Child care expenses incurred as a result of the employment, illness, disability or education or training for employment of the spouse who has the majority of parenting time;
- That portion of the medical and dental insurance premiums attributable to the child;
- Health-related expenses that exceed insurance reimbursement by at least $100 annually, 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;
- Extraordinary expenses for primary or secondary school education or for any other educational programs that meet the child’s particular needs;
- Expenses for post-secondary education; and
- Extraordinary expenses for extracurricular activities.
Section 7 expenses are generally divided proportionally based on each parent’s guideline income. However, these expenses are not always automatically divided. Section 7 expenses typically require the consent of both parents, except in cases where the expense is deemed a necessity, such as reasonable child care expenses. It is important to note that only the net Section 7 expenses, after any insurance, grants, subsidies or tax deductions, are divided.
Varying Child Support
It is the responsibility of the payor to ensure they are paying child support consistent with their guideline income. To accomplish this, financial disclosure will need to be exchanged each year to determine the guideline income.
In most cases, parents will exchange financial disclosure in June of each year after their previous year’s taxes have been filed. Child support in Alberta can then be varied starting in July on a go-forward basis. However, in instances of extreme changes in guideline income, such as job loss, disability or a large promotion, it may be necessary to vary child support earlier.
Canada Child Benefit
The Canada Child Benefit or other monthly benefits received from the government is not something governed by the Federal Child Support Guidelines or the Alberta Courts. These amounts are set and distributed by the respective governments and do not impact child support.
The Importance of Legal Advice
Child support can be a complex issue, especially in situations where a parent’s guideline income is difficult to determine. It’s often a good idea to consult a lawyer to understand your rights and obligations fully.
To learn how we can help, contact BDL Family Law today to schedule a consultation.
