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What changes should be made to family law?

These proposals let family law lawyers discuss and vote on what changes they think should be made to the law or court procedures. The results can be viewed and shared with legislators and the Courts. The proposals put forth are written by member lawyers, and do not necessarily reflect the views of this website or its administrators. You can view more proposals or make a proposal yourself.

Proposal: Unless recurring or in substitution of income, withdrawals from registered investments and capital gains should be excluded from guideline income
Child Support - Aug 15th

71% in favour out of 17 votes

Ken Proudman - view Arbitrator profile
BARR LLP (Alberta. Joined 2017)

It's a common scenario: one spouse finances their legal fees by withdrawing their investments, and another spouse finances their legal fees by using income, bank account or loans from family. If they were both payors, the first spouse would have to pay increased child support, while the other would not. Similarly, where the parties sell a rental property or business to address the division of their property, one spouse may have to pay additional child support on their share of the property.

In some contexts such as high income earners, we ask whether each additional dollar would truly be used to increase the children's lifestyle especially if non-recurring, but otherwise there is no general discretion to exclude these amounts.

By limiting it to non-recurring amounts, that would exclude people who are in the business of selling assets (eg someone who flips houses). If someone is relying on their savings instead of working, that could be addressed through imputation.

0 35 days ago - edited 35 days ago

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