The Ins and Outs of Child Support

When parent's are unable to reach an agreement with respect to the cost of raising a child, they are able to apply for an administrative assessment through the Child Support Agency.

In assessing the contribution to be paid, the Child Support Agency uses a particular formula that considers a range of factors. Some of these factors are:

• The costs of raising a child, which has been determined by independent research;
• Both parent's annual income; and
• The level of care that each parent has with the child.

Once an assessment has been determined, the Registrar from the Child Support Agency will send correspondence to the parent's advising of the assessed monetary amount and the manner in which the assessment was calcualted.

If you are not satisfied that the child support assessment accurately reflects your circumstances, then you may be able to apply for a change of assessment through the Child Support Agency.

The Child Support Agency outlines ten (10) reasons that a parent can apply for a change of assessment. They are:

1. The costs involved with spending time with your children is more than 5% of your adjusted taxable income;
2. Your child or children have special needs that require additional financial support outside the normal day to day expenses;
3. There are extra costs associated with the care of the child in the manner that both parties intended;
4. The child or children earn an income or have financial resources available to them;
5. You have provided money, goods or property for the benefit of the child or children;
6. The costs of childcare for the child or children under twelve (12) years of age is above 5% of your adjusted taxable income;
7. You have out of the ordinary necessary expenses to support yourself;
8. The assessment does not reflect either parent's income, property or financial resources;
9. You have a legal duty to support another person; and
10. You have a responsibility to support another residential child.

Before considering this option, it is important to note that under the Child Support "forumla", general household and day to day costs are considered in the assessment. Extra's like private school fees, daycare fees, costs associated with extra curricular activities and special medical expenses have not been included and will be considered under reasons two and three, outlined above.

If you would like to ensure that these additional costs are taken into account, then you may need to consider the option of entering into either a Limited Child Support Agreement or a Binding Child Support Agreement in addition to or in replace of your Child Support Assessment. You may also consider making an Application for a Change of Assessment.

If you would like to discuss any of these options, please contact our office and schedule a time to speak with one of our lawyers.