A Guide to the Math Behind Ontario’s Child Support Tables

The Federal Child Support Guidelines serve as a dependable framework for calculating child support during a separation or divorce. They aim to eliminate the uncertainty traditionally involved in figuring out the appropriate child support amount. These Guidelines ensure that parents in similar situations pay a comparable sum for child support.

Complexity and Criticism

However, many divorcing parents find the Guidelines difficult to navigate due to the complex terminology and intricate formulas involved. There’s also debate on whether the Guidelines truly serve their intended purpose effectively.

A Simplified Overview

To address these concerns, this article offers a simplified guide on determining child support using the Guidelines. It also delves into a brief history of the mathematical basis behind the Guidelines and why this approach was chosen.

Source

In this formula:

• PP refers to the paying parent or non-custodial Parent, while RP is the receiving parent or custodial parent
• AEU means adult equivalent unit and is a number used to determine the cost of raising a child
• Table amount is the amount of child support a parent would pay based on their annual income

Based on the formula, parents can calculate their living standard after accounting for taxes, child support, and the number of children in the household. 

Equal Income and Contributions

The formula used for determining child support payments assumes that parents start with equal incomes. When incomes are equal, both parents should contribute equally to child support. If incomes differ, the formula aims to balance the living standards between the two households.

Equivalence Scale for Raising Costs

The formula considers the costs of raising a family based on a 40/30 equivalence scale. This means it costs 40% more to support an additional adult in the household and 30% more to support each child.

An equivalence scale refers to a measure of the cost of living of a particular household size and composition, compared with the cost of living of a reference household when both households achieve the same standard of living. The reference household is usually a single adult.

Exclusion of Taxes and Benefits

Taxes and government benefits are not included in the calculation of child support amounts. They are also excluded from the formula that seeks to equalize household living standards.

Assumptions About Parental Roles and Costs

The formula assumes that the custodial parent bears all child-related costs, while the non-custodial parent has no such expenses or support obligations for anyone else. It also assumes that the custodial parent remains single and covers their share of child-related costs.

The Department of Justice explains that separating parents can calculate their child support commitments using the following steps:

• Step 1: Determine if the Federal Child Support Guidelines apply to you. In general, the Guidelines will apply to you and your spouse unless you both live in New Brunswick, Manitoba, or Quebec.
• Step 2: Determine the number of children that will require child support. Children under 18 (or 19 in some provinces) and those above 18 who cannot become independent due to illness, disability or other causes are considered for child support.
• Step 3: Determine the parenting time arrangement. Typically, the parent with less parenting time (called the non-custodial parent) will pay more or all of the child support.
• Step 4: Determine the child support table that applies to you. Each province and territory has a separate child support table. The tables list yearly income up to $150,000 and the appropriate child support to be paid based on income level and number of children. The tables can be accessed here.
• Step 5: Calculate your annual income and/or your spouse’s. The circumstances where you may need to calculate both your incomes include where you split or share parenting time; there are special or extraordinary expenses, the paying parent earns more than $150,000 a year, etc.
• Step 6: Apply the table amount based on your annual income. The child support amount will also be based on the number of children you have.
• Step 7: Determine if there are special or extraordinary expenses. Where these expenses exist, the parents will typically share them in proportion to their annual income.
• Step 8: Determine if there is undue hardship. An undue hardship claim may serve to reduce the amount of child support payable. Examples of undue hardship include a legal duty to support a dependent child from another relationship, etc. To show undue hardship, the parent making the claim must show that their standard of living is lower than the other parent.

The table amounts are determined based on the formula described above. Let’s take a closer look at how each formula component is derived.

Child support is crucial in ensuring the well-being and financial security of children whose parents have separated or divorced. One crucial aspect to consider when determining the amount of child support is using an equivalence scale.

The equivalence scale is a tool used to measure the relative level of needs for individuals or families of different sizes and compositions. In the context of child support, the equivalence scale helps determine the appropriate amount of support for children based on their parents’ financial circumstances.

Like any system, using an equivalence scale for child support has advantages and disadvantages. One of the significant benefits is that it considers each family’s unique circumstances and needs. By considering factors such as the number and ages of the children, it aims to provide more accurate financial support.

Another advantage is that an equivalence scale can help reduce conflict and disputes between parents. Since the ranking is based on objective criteria and calculations, it provides a transparent and standardized method for determining child support amounts. This can help prevent disagreements and contentious negotiations between parents.

However, there are also criticisms of the equivalence scale. Some argue that it oversimplifies complex financial and emotional dynamics within families. It may only partially capture the full range of expenses required to raise a child, especially if unique circumstances or particular needs are involved.

Additionally, the scale may not account for changes in financial circumstances over time. Income fluctuations, changes in the cost of living, or unexpected expenses may not be adequately reflected in the scale, leading to situations where the child support amount may not accurately reflect the child’s current needs.

Using an equivalence scale for child support is essential in ensuring that children receive the financial support they need following a separation or divorce. By considering factors such as the number and ages of the children and the income and cost of living, the scale aims to create a fair and reasonable distribution of financial responsibilities.

While it has its advantages in terms of transparency and tailored support, it also has limitations and may not fully capture each family’s unique circumstances. Finding the right balance between accuracy and flexibility is crucial in determining child support amounts that best meet the child’s needs.

After deciding to separate or divorce, various legal matters must be resolved between the parties involved. If the marriage results in children, child support is one of these important issues. All provinces in Canada, including Ontario, have established laws that ensure the provision of child support.

Regardless of whether you opt for a court process or mediation, it is crucial to have a plan for child support if you have children. Your child support plan should address the amount of financial support required, the responsible party, and the preferred payment method. However, the decision-making process regarding these matters rests not solely on your discretion or the other parent’s.

Ontario has specific regulations that govern the allocation of child support and the corresponding payment amounts. To determine the appropriate level of child support in your divorce case, you will need to follow these guidelines, which may involve utilizing a child support calculator. In this article, we will elucidate how child support is calculated in Ontario, also known as “how much is child support,” and outline the key factors that should be considered.

Child support in Ontario represents an ongoing financial commitment designed to ensure a child maintains a decent standard of living after their parents separate. This child support obligation typically takes the form of a monthly payment, the amount of which is based on a federal government guideline. The parent’s income is a significant consideration in this process, as child support is intended to reflect what would be reasonably needed for the child to thrive. In some cases, the child support payable may encompass special monthly expenses, such as fees for extracurricular activities or music lessons, which enrich the child’s life.

There isn’t a specific, universally applicable figure for the amount of child support paid each month. Instead, the child support order depends on several factors:

• Gross income of each parent
• Table amount support
• Special or extraordinary expenses
• Parenting arrangement

Typically, the parent with whom the children live most of the time is entitled to receive child support. In contrast, the other parent, often referred to as the payor parent, carries the financial responsibility to provide this support. However, this is not a hard and fast rule. Determining who and how much they should pay is a complex process involving various factors.

This procedure falls under family law issues and often requires the involvement of family lawyers or the court. By following a series of steps, parents can better understand their child support obligations and rights. All of these guidelines are under the jurisdiction of the Ontario government and are presented in English for clarity and ease of understanding.

The next step is determining if any special or extraordinary expenses apply in your case. These expenses, also known as section 7 expenses, may be added to the table amount. Examples of such expenses include:

• The portion of medical and dental insurance premiums that the other parent pays to cover the children.
• Childcare needs that the parent living with the child would face due to their job, such as daycare expenses during illness, etc.
• Children’s healthcare needs beyond what is covered by insurance, such as eye care, counselling, hearing aids, etc.
• Expenses for extracurricular activities like music lessons or sports.
• Expenses for post-secondary education.
• Expenses for primary and secondary education.

Not all expenses will qualify as special or extraordinary. To be considered, they must be necessary and reasonable. Being necessary means that they are required for the child’s best interests, and being reasonable means that they are within the family’s financial means. You can calculate these expenses either manually or by using a child support calculator.

For example, if you have one child who participates in basketball at $200 per month, this amount can be added to your table amount. If the table amount was $311, your child support payment would increase to $511. There is no set provision for determining who must pay these special or extraordinary expenses.

You and the other parent can agree for one parent to pay the full amount, split them equally, or divide them based on each parent’s income. If you agree to split the expenses 50-50, the paying parent will only cover 50% of the special expenses and the table amount.

Here’s how it works: if the special expense is $200, and you agree to split it equally, you would contribute $100. Adding this $100 to the $311 table would result in a child support payment of $411. Please note that the above calculation is for illustrative purposes and may vary based on your circumstances.

Not all the time. There are certain specific circumstances where this may be the case though. For instance, where there is shared custody or split custody between the parents, the amount may change.  Shared custody is what happens when the child spends more than 40% of his or her time with each parent. In this case, both parents now have an obligation to pay child support. So, you’ll have to calculate each parent’s annual income to arrive at the table amount and determine extraordinary expenses.

Remember that in this case, you’re both treated as if you have 1 child living with you.  Once you determine how much each parent should pay, then the parent who has to pay more only pays the difference between the two amounts. Assume John and Sarah go through the calculation and determine their amounts are $300 and $500 respectively.

It means, in this case, Sarah pays John the difference between $500 and $300 in child support. That’s $200.  Split custody is similar to shared custody. Only now, there are two or more children and each parent has at least one child that lives with them most of the time. In this case, both will also have to pay child support. Likewise, when they determine how much each should pay, the parent who has to pay more only pays the difference.

Keep in mind that in calculating child support for split custody, you should pick the table amount that applies to how many children live with you.

Once all particulars have been settled, it’s crucial to consider how you wish to organize and schedule your child support obligation. This could be facilitated through one of three methods:

1. Update child support online via the official Ontario portal
2. By means of a written agreement
3. In a court order

Opting for a written agreement, a mediator can assist in sorting out the minutiae. Should you desire to have the agreement enrolled with the Family Responsibility Office, it’s possible to enroll such an agreement in court as well. Please bear in mind that your agreement should delineate sufficient details regarding the timing of payment and the manner of execution.

The report from the Government of Canada focuses on the experiences of separated and divorced parents dealing with child support and related issues. The study involved both qualitative interviews and surveys. It found that while a majority had child support arrangements in place, about 30% did not, often due to various challenges such as legal costs, intimidation by the other parent, or lack of cooperation. The report also delves into the complexities of income disclosure, ongoing adjustments to child support, and the challenges parents face in shared custody arrangements. It highlights that many parents are unsatisfied with the available services and support systems, including legal and mediation services, for resolving child support issues.

Tap Here to Access the Report

Thought-Provoking Questions

1. Legal Complexity: How can the legal system be simplified to make it easier for parents to navigate child support issues?

2. Shared Parenting: What measures can be put in place to support parents in shared custody arrangements, especially when it comes to negotiating child-related expenses?

3. Support Systems: How can support services, like mediation and legal aid, be improved to better assist parents in resolving child support disputes effectively?