In Ontario family law cases, spousal support and child support payments are calculated based on a person’s income. However, in a given year, one might generate income that they do not normally earn. This income is not from a regular paycheck, but is generated by other means. Ontario judges are able to use their own discretion when it comes to this non-recurring income, and it generally increases the child or spousal support payments. Support income is not necessarily always the same as tax income.
Some of these forms of non-recurring income include:
Capital Gains: Capital gains may be used to increase support payments, but capital losses are not generally used to lower the person’s overall income when it comes to paying child or spousal support. If any capital gains are immediately reinvested, such as small business revenue going back into the business, they’re not usually considered income.
Severance Packages: If one is laid off and receives a severance package they may find a job right away and report a much higher income for that year, which usually would be used for spousal or child support calculations.
RRSP Redemption
These types of income are included on income tax income but not necessarily spousal or child support income, unless it is repeated every year.
Awards from Lawsuits:
Awards for the loss on income are usually reported as income, but awards for personal suffering are not.
Stocks:
As with RRSP redemptions, if stock options are exercised once in a blue moon they aren’t typically counted. However, if you do it frequently and can establish a pattern of exercising stock options, they may be counted as income.
Spend some time on Google, speak to trusted friends and conduct some preliminary research. A few clicks of a mouse can provide you with enough reason to hire – or not hire – a particular lawyer or firm.
A great divorce lawyer listens and works with you to achieve the best outcome possible. They don’t promise vengeance, but they take notes and are able to devote enough attention to you and your case.
The lawyer for you has likely handled many similar cases and knows the family law world inside and out. They’re also able to effectively communicate this to you without risking the confidentiality of their other clients.
A huge sign of a good family lawyer is that their goal is to keep you informed and educated about the process and how they can help you. They have a blog, are active in social media and networking and have a fully-functioning web site that’s constantly being updated with the latest divorce news, as well as offering basic advice throughout each page.
Choosing who you want to represent your best interests in a major life event like a divorce can seem overwhelming, and there’s ads everywhere imaginable letting you know who’s around to “help” you with a quick and easy divorce. Unfortunately, divorce is rarely a quick or easy process, and you’ll need be able to recognize the individual or firm that is best suited to represent you.