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Financial Security After Divorce

Divorce is more than the end of a relationship—it’s the beginning of a new financial reality. Separating finances after years of shared income, property, and responsibilities can be stressful and worrisome. At Anthony Family Law, we help clients across Ontario navigate the financial impact of divorce with clear guidance, practical strategies, and a focus on long-term security.

Financial Disclosure and the First Steps Toward Stability

The first step in protecting your financial future is full transparency. Ontario law requires complete financial disclosure from both spouses, which can feel invasive. Each party must file financial statement forms detailing:

• Income sources: Employment, pensions, government benefits, rental income, self-employment, dividends, etc.
• Assets: Real estate, vehicles, savings, RRSPs, TFSAs, business interests, and valuable personal property, etc.
• Liabilities: Mortgages, credit cards, lines of credit, personal loans, and taxes
• Ongoing expenses: Housing, childcare, medical costs, education, transportation, and support payments, etc.

Our team helps to ensure this process is accurate, thorough, and in line with Ontario family law. With a proper financial inventory, we can begin to negotiate property division and support with confidence.

Understanding the Equalization of Net Family Property

Ontario’s Family Law Act, R.S.O. 1990, c. F.3, uses a system called equalization of net family property to divide marital assets fairly. Each spouse calculates their net worth at the start and end of the marriage. The one whose wealth increased more typically pays half of the difference—known as the equalization payment.

Key steps in the process:

• Calculate your net worth on the date of marriage and the date of separation
• Subtract marriage-day value (except for shared assets like the family home)
• Compare increases in net worth between spouses
• The spouse with the greater increase pays half the difference to the other

Certain assets are excluded from equalization—such as gifts or inheritances—unless they were co-mingled into joint accounts or used for shared purchases.

Spousal Support: What You Need to Know

Spousal support (sometimes called alimony) is intended to reduce financial inequality after a separation. Support may be awarded when one spouse is economically disadvantaged due to the roles they played in the marriage.

Factors that influence spousal support entitlement:

• Length of the relationship
• Contributions or sacrifices made by either spouse (e.g., raising children, supporting education)
• Financial need and disparity
• Standard of living during the marriage
• Ability to achieve financial self-sufficiency post-divorce

Spousal support can be temporary, long-term, or indefinite, depending on the circumstances.

How Much Support—and For How Long?

Ontario courts may use the Spousal Support Advisory Guidelines (SSAGs) as a reference, though they are not mandatory. The guidelines help estimate:

• Payment amounts based on income and duration of the relationship
• Duration of support, which depends on marriage length and whether children are involved

Support may be paid in various forms:

• Monthly or periodic payments
• Lump-sum settlements
• Interim support during divorce proceedings

Mediation vs. Litigation

Spousal support can often be resolved outside the courtroom. Collaborative family law or mediation can provide a more cost-effective and private alternative to litigation. In mediation, a neutral third party helps both spouses reach a mutually acceptable agreement. Collaborative divorce involves both parties working with their lawyers and other professionals to settle matters respectfully and constructively.

These approaches are especially valuable for couples who wish to preserve a civil relationship, reduce stress, and maintain greater control over the outcome. They can also help minimize emotional strain on children. However, if negotiation fails or power imbalances exist, matters can still proceed to trial.

Spousal Support and Taxes in Ontario

The tax treatment of spousal support in Canada is as follows:

• Periodic payments made under a court order or written agreement are tax-deductible for the payer and taxable for the recipient
• Lump-sum payments are generally not deductible or taxable unless they represent back payments or court-ordered retroactive support

To qualify for these tax rules, support must be clearly stated in a legal agreement or order. Note: if both spousal and child support are owed, child support takes priority for tax purposes.

Managing Marital Debt

Debt division is a critical part of financial planning during divorce. Joint obligations—like mortgages, loans, and credit cards—remain legally binding on both spouses unless they are refinanced or have been paid off. A lawyer can help you:

• Identify shared and individual debts
• Structure debt division fairly
• Protect your credit and financial stability post-divorce

Child Support and Shared Parenting Costs

Child support is calculated using the Federal Child Support Guidelines, based on the payor’s income and number of children. In shared parenting situations, where each parent has the child at least 40% of the time, both incomes are considered. Additional costs—like medical care, school fees, and extracurricular activities—are often shared proportionally or equally. Lawyers help ensure accurate financial documentation to support a fair arrangement.

Why Choose Anthony Family Law in Toronto?

• Trusted experience in complex cases: Founding lawyer David Anthony and the Anthony Family Law team are frequently retained in high-net-worth family law matters involving self-employed income assessments, corporate valuations (domestic and international), executive pensions, and forensic asset tracing. His knowledge of these intricate financial structures brings clarity and strategy to even the most challenging divorces.
• Respected counsel in parenting and jurisdictional disputes: Anthony Family Law also represents clients in high-conflict parenting cases, including child abduction, matters involving children with disabilities, and grandparent access. 
• Discreet representation for high-profile individuals: Frequently recommended by word of mouth, Anthony Family Law is trusted by business executives and others in the public eye for his ability to resolve sensitive family law disputes with discretion and professionalism.
• Proven results in court: Anthony Family Law has acted in numerous reported cases and precedent-setting decisions, including reversals of custody, income imputation, and successful defenses in high-profile contempt motions covered by national media.
• Client-first philosophy: Our approach is supportive, strategic, and deeply committed to protecting your financial well-being.
• Tech-enabled legal services: With virtual consultations and secure digital systems, we offer convenience without compromising quality, wherever you are in Ontario.

Start Securing Your Future Today

At Anthony Family Law, we do more than manage divorce cases—we help people rebuild their financial lives. Let’s discuss your goals and how we can help protect your long-term stability.

Book your consultation today by calling 647-933-2397 or visiting anthonylaw.ca.

Modifying Ontario Family Law Court Orders 

Life doesn’t stand still—circumstances evolve. Court orders regarding child custody, support, or visitation should reflect those changes. Whether you’re seeking to enforce an existing court order or modify one that no longer fits your situation, there is a way to find the best path to address your family’s needs.

At Anthony Family Law, we help you understand your options and rights under Ontario family law. Whether you’re trying to update a child support agreement due to job changes or enforce a parenting schedule that’s not respected, we’ll work with you to find the most effective solution.

What is a Family Court Order in Ontario?

Family court orders are legal frameworks that govern crucial aspects of your life. These orders are geared to provide structure, stability, and fairness. When situations shift, the original terms may need to change, too.

Common Types of Family Court Orders

• Parenting Orders: Specify who has decision-making responsibility and how parenting time is shared between parents.
• Child Support Orders: Set out the amount of financial support one parent must pay to help cover the costs of raising a child, based on the Child Support Guidelines.
• Spousal Support Orders: Determine whether one spouse must provide financial support to the other after separation, considering factors such as need, ability to pay, and length of the relationship.
• Property Division Orders: Deal with how property, including the matrimonial home, is divided under Ontario’s Family Law Act.
• Restraining Orders: Prohibit one party from contacting or approaching the other, often issued in situations involving harassment, threats, or family violence.
• Exclusive Possession Orders: Grant one spouse the legal right to stay in the matrimonial home, usually for the safety or stability of children.
• Support Variation Orders: Modify existing child or spousal support orders due to major changes in income, employment, or family needs.
• Temporary (Interim) Orders: Provide short-term arrangements while a family law case is ongoing, often used to manage urgent issues like child support or parenting time.
• Final Orders: Conclude a family law case and remain in effect unless changed by further agreement or court order.

When Can I Modify a Family Court Order?

In Ontario, the courts allow family court orders to be changed when there’s been a “material change” in circumstances. This means something significant has shifted since the original order was made—something that couldn’t have been predicted at the time and that affects the fairness or practicality of the order.

Common Reasons to Modify a Family Court Order

You may have grounds to request a modification if any of the following apply:

• Job loss or significant change in income: A decrease or increase in income may affect your ability to pay (or your need to receive) support.
• Relocation or a significant move: A parent moving or relocating to another city to another city or province can impact parenting time or decision-making arrangements.
• Changes in a child’s needs: Children’s needs may evolve, requiring a different parenting schedule or support structure.
• Remarriage or new relationships: A parent entering a new relationship may affect support obligations.
• Health issues: New health concerns affecting a parent or child can influence caregiving responsibilities or financial needs.
• Non-compliance with an existing order: If one party consistently fails to follow the order, the court may modify it to reflect the situation or enforce compliance.
• Parental alienation or safety concerns: If a child’s emotional well-being or safety is compromised, the court may intervene.

Mediation: Handling Modification Requests Outside of Court

Before going to court, mediation can be an effective way to resolve disputes. It allows both parties to negotiate a modification in a non-confrontational setting. Many courts encourage mediation as a first step in resolving family law issues. The family lawyers at Anthony Family Law can help you prepare and successfully navigate dispute resolution outside of court if both parties are willing to consider this option in Toronto, the GTA, or Windsor.

How to File for Modification of a Family Court Order in Ontario

Seeking to modify a family court order requires filing a motion. The formal document is called a Motion to Change (Form 15). This form outlines the changes you request and the reasons behind them.

A family law lawyer can guide you through the process by helping you with the required paperwork, such as the Affidavit in Support of Motion (Form 14A), which details the changes in circumstances since the original order. Our family law lawyers will work to ensure that all forms are completed correctly and submitted to minimize the risk of delays, denial, or complications.

Our lawyers will also help you with the required supporting documentation, such as proof of a change in income, medical records, or a new parenting plan, for a compelling case to help convince the court that your request should be granted.

How Can I Enforce a Family Court Order?

Life can be difficult when one party refuses to comply with a family court order. Ontario law provides several enforcement mechanisms to resolve these situations.

To successfully enforce a family court order, the first vital step is to document cases of non-compliance. Missed payments or a failure to adhere to visitation orders will require supporting evidence for enforcement actions to be initiated.

Family Court Order Enforcement

Once you’ve documented non-compliance, the next step is to take legal action to enforce the court order. The enforcement strategy depends on the type of order and what was violated. 

Enforcing a Child or Spousal Support Order

For child or spousal support, enforcement actions are handled through the Family Responsibility Office (FRO). This government agency enforces support orders and domestic contracts filed with the court. If payments are missed, the FRO can:

• Garnish wages or bank accounts
• Suspend driver’s licenses or passports
• Seize federal payments (like tax refunds or Employment Insurance)
• Place liens on property
• Report on the payor to the credit bureaus

The support order or agreement must be registered with them to use the FRO. A family lawyer in Ontario can help with this process or assist in re-registering a previously withdrawn file.

Enforcing a Parenting Time or Custody Order

The process is different for parenting time (formerly “access”) or custody issues. If the other party is not complying with a parenting order or agreement, you can file a motion to enforce the order under Rule 31 of the Family Law Rules. In some cases, you may need to bring a motion for contempt, but this is considered a more serious step and is typically reserved for repeated or willful disobedience of court orders.

Our Toronto family law lawyers can help you with enforcement actions, prepare the necessary documentation, and represent you in court.

Why Legal Help Matters When Modifying or Enforcing Family Court Orders

Trying to navigate the family court system alone can feel like walking into a confusing maze without a map. A family law lawyer makes a significant difference in whether your modification or enforcement is approved.

Ready to Modify or Enforce Your Family Court Order?

If you’re considering modifying or enforcing a family court order, don’t walk into the legal maze alone. Contact the experienced family law lawyers at Anthony Family Law. We’re here to provide you with the support, guidance, and legal expertise you need. Call us today at 647-933-2397 to discuss your case and start on the path to resolution.

Helping Parents Resolve Visitation Issues in Ontario

Divorce is almost always more difficult when children are involved. Establishing a well-structured parenting time schedule (sometimes referred to as visitation) is a critical aspect of ensuring that a child survives a divorce with the least disruption and emotional turmoil. A fair and functional visitation schedule should focus on the children’s best interests, with the parents’ considerations being a secondary factor.

The Ontario Children’s Law Reform Act and the federal Divorce Act govern parents’ rights in parenting time and decision-making responsibility matters. Both parents are entitled to parenting time and the ability to visit with and be visited by the children, subject to safety or other concerns.

One parent may be granted primary decision-making responsibility regarding the child’s health, education, and overall welfare, generally referred to as the “custodial parent”. The other parent may not have the right to make decisions about the child’s health, education, and welfare but, under the Act, has the right to all information about these issues.

Parenting Time vs. Decision-making Responsibility

In family law in Ontario, parenting time and decision-making responsibility are related but different issues that need to be worked out between the parties.

Parenting Time:

Refers to the time children spend with each parent, regardless of whether that time is physically spent with the parent, for example, when the children are at school.
It used to be called “access”.

All parents are entitled to parenting time, even if they don’t share decision-making responsibility, subject to negotiations in and/or out of court.
Parenting time can be shared or split.

Decision-making Responsibility:

• Refers to the time children spend with each parent, regardless of whether that time is physically spent with the parent, for example, when the children are at school. 

• It used to be called “access”. 

• All parents are entitled to parenting time, even if they don’t share decision-making responsibility, subject to negotiations in and/or out of court. 

• Parenting time can be shared or split. 

Tips for Establishing a Fair Visitation Schedule

Communicate Respectfully

• Refers to the authority to make significant decisions about a child’s life, such as those related to health, education, culture, language, religion and spirituality, and significant extra-curricular activities. 

• It used to be called “custody”. 

• Decision-making responsibility can be sole (one parent makes all decisions) or joint (both parents make decisions together), or one parent with final decision-making responsibility 

Work Schedules and Parenting Time

You may want equal time with your children, but before making any decisions, you must be realistic about your schedule and availability when planning a visitation schedule.

A plan that is less likely to run into disruptions or schedule changes will be more successful for the children and the parents. In this planning, consider the location of school(s), commuting time for pick-up and drop-off both for school and visits, your work schedules, and other demands on time.

Be Flexible

Life comes with change, and even the most carefully crafted plan may need to be modified as needs change. Children, as they grow, have new activities and needs, and a parent may have a change in employment with a different schedule. Be open to updating a visitation schedule to match changing needs. Remaining flexible can smooth this process and help avoid the need for court intervention. A Toronto family lawyer from Anthony Family Law can advise you and offer guidance and support when visitation modification issues arise, especially in Toronto and the Greater Toronto Area.

Consider the Child’s Age

When developing a visitation schedule, the primary focus must be on the child’s needs. The court may assess factors such as:

• The child’s age and stage of development
• Their emotional and physical well-being
• Their relationship with each parent
• Stability in education and extracurricular activities

A schedule that allows your child to maintain their routine while fostering strong bonds with both parents will be considered ideal.

Holiday Plans

Holidays can pose issues for parents who want to spend time with their children on birthdays, religious holidays, and other important dates. Holiday schedules can be resolved in various ways, whether parents have a child on holidays or splitting hours of an important day. Agreeing on holiday sharing is essential for avoiding last-minute conflicts and helping a child enjoy important holidays without added stress or emotional upheaval.

Travel and Relocation Issues

If one parent often needs to travel or plans to relocate, the impact on the visitation schedule should be discussed long in advance if it will affect the visitation schedule. A parent who wants to move (relocate) with a child is required to provide a legal written notice to the other parent, and the wish to move away can be challenged in court.

A Predictable Schedule and Child Well-Being

Children are more likely to flourish under a structured, predictable visitation schedule. The most common types of parenting plans include:

• Alternating weekends: One parent has the child on weekends, while the other has them during the week.
• Week-on, week-off: Ideal for older children who are more comfortable with transitions between homes.
• Split weekdays: The child spends certain weekdays with each parent (e.g., Monday–Wednesday with one parent, Thursday–Sunday with the other).

Children in Danger

In some cases, a child may be in danger or harm, or a parent believes the child may be removed to another province or country. In these cases, a temporary court order must be sought immediately. It is advised that you engage the services of a Toronto family law attorney immediately if you are concerned that your child may be at risk due to criminal activities, drug or alcohol use, or domestic violence.

The Ontario Mandatory Information Program (MIP)

The “Mandatory Information Program” (MIP) in Ontario is a free session in which parents are provided with the information they need about the legal process of divorce or separation. Issues regarding the impact of divorce or separation on children, as well as the various options for resolution, are discussed. These programs are the first step in the family court process and are mandatory to attend when a divorce involves support, parenting time, or decision-making responsibility. Parents must be aware of the impact of divorce on children and focus on ensuring the children do not suffer needlessly.

Your Advocate in Child Visitation Matters in Toronto: Anthony Family Law

At Anthony Family Law, we are honoured to be trusted by our many clients to resolve the most urgent family law matters. We bring extensive litigation experience to issues involving parenting time (custody) and decision-making responsibility as well as with those working to be resolved through mediation or other alternative dispute resolution solutions. Additionally, we assist clients in renegotiating parenting time and decision-making agreements and also in filing motions for or negotiating holiday time and travel arrangements.

Contact our firm at 647-933-2397 to discuss your situation and help you establish a functional, fair child visitation schedule.

Understanding Child Support Laws in Toronto

Child support in Ontario is governed by the Federal Child Support Guidelines, the Divorce Act, and the Family Law Act for married couples. Common-law couples are governed by the Ontario Child Support Guidelines and the Children’s Law Reform Act. These laws ensure that children receive financial support from both parents. Understanding the legal framework these statutes create is an important step. If you are facing a dispute over child support payments, retaining the services of an experienced family law lawyer in Toronto is even more crucial to help you achieve a viable solution as soon as possible. In this post, the singular “child” refers to one or more children.

Determining Child Support Obligations

The Federal Child Support Guidelines aim to provide consistency and fairness in financial calculations for married couples across Canada. They outline how child support payments are determined, including the following:

•   Basic child support amounts: Based on the paying parent’s income and the number of children, though often considers both parties’ income and what is set out in the parenting arrangement.
•   Special or extraordinary expenses: Additional costs like tuition, medical expenses, or extracurricular activities.
•   Changes in financial circumstances: How to request modifications if income or expenses change.
•   Enforcement mechanisms: Ensuring compliance through the Family Responsibility Office (FRO).

When child custody and visitation arrangements are first made, these guidelines will be followed to establish who will pay child support, for how long, and how much. If the judicial directives are followed, there is no need for enforcement. In the case of a dispute or non-payment, you can take legal action.

How Can I Enforce a Child Support Order in Toronto?

If a parent fails to make court-ordered payments in Ontario, the Family Responsibility Office (FRO) enforces court-ordered support. The FRO has several enforcement tools at its disposal, including the following:

•   Wage garnishment: Under Section 20 of the Family Responsibility and Support Arrears Enforcement Act, the FRO can issue a Support Deduction Notice to an employer, requiring them to deduct child support payments directly from the payor’s wages.
•   Driver’s license suspension: If payments are overdue, the FRO can request the Ministry of Transportation to suspend the delinquent parent’s driver’s license until payments are made.
•   Asset seizure: The FRO can place a lien on personal property or initiate legal action to seize assets, including bank accounts and real estate.
•   Passport and federal license suspension: The FRO can request that the Government of Canada suspend passports and federal licenses (such as hunting or fishing).
•   Credit reduction: Missed payments can be reported to credit bureaus, negatively affecting the payor’s credit score.

How Can a Family Lawyer Help Enforce Child Support Payments in Ontario?

The FRO provides robust enforcement mechanisms, but it can be slow. When time is of the essence, or a situation has continued for too long, a family lawyer can take the following actions to advance your case:

•   Expedite enforcement actions by ensuring all documentation is submitted correctly.
•   Assist in negotiations with the FRO to set up payment plans or resolve disputes.
•   Represent your case in court if the payor disputes the enforcement measures.

How Do I Modify an Existing Child Support Agreement?

Life circumstances change, and so do financial situations. If a parent experiences job loss, illness, or other significant financial shifts, they may need to modify binding child support obligations. A family lawyer in Ontario can assist in filing the necessary documents when the parenting relationships are contentious. If that is the case, you will need to file a “Motion to Change” along with a group of supplementary supportive documents, including significant financial disclosure, that explain your current financial position and why you are requesting an update to the existing child support payment plan. The judge will review your submission for approval. Such requests require strong financial evidence with supporting documents and reasoning; a Toronto family attorney can advise if your arguments are legally sound.

Resolving Child Support Disputes Through Mediation

Mediation is often a faster and less adversarial way to resolve child support disputes. A neutral mediator helps both parties reach a fair and legally binding agreement. A mediator is a paid service provider. Our firm has extensive experience in alternative dispute resolution, assisting parents to find amicable solutions without the stress of court proceedings.

Taking Child Support Disputes to Court

If mediation fails, litigation may be necessary. The Ontario Court of Justice and the Superior Court of Justice (Family Court) handle child support disputes. We have a proven track record of representing clients in court, ensuring that the child’s best interests are protected while advocating fair financial support. Note, however, that litigation can be costly and should be weighed against the amount you want to recuperate or reduce in payment.

Handling Child Support in High-Income Cases

Child support calculations can become complex for high-income earners and in high-net-worth scenarios. The courts have discretion to deviate from the standard guidelines. Some considerations that our experienced Ontario family lawyers can help you address include the following:

•   Income over $150,000: When your income exceeds $150,000, courts can either follow the standard table amount or adjust it based on the child’s needs. Judges may consider lifestyle, educational costs, and extraordinary expenses when determining a reasonable amount.
•   Bonuses, stock options, and business income: If you receive annual bonuses, stock options, or profit-sharing, the court may average your income over several years to ensure fair calculations. Self-employed individuals and business owners must disclose all sources of income, including retained earnings in corporations. Our firm can assist you in making sure these calculations are fair and adjusted.
•   Special and extraordinary expenses: Like all child support calculations, extracurricular activities, school expenses or tuition costs, travel, and medical expenses may be added to the standard child support amount.

Working with a family lawyer in Ontario helps ensure that financial disclosures are accurate and that calculations represent income and obligations fairly. Family lawyers from our firm can also negotiate settlements or structured support agreements that minimize unnecessary litigation.

Judicial Discretion and Fairness

Unlike standard cases that are determined by the Federal Child Support Guidelines, judges in high-income disputes can determine what is reasonable and proportionate to the child’s needs. Courts must avoid overcompensation, ensuring support is for the child’s benefit and not a disguised form of spousal support.

Child Support for Adult Children

In Ontario, child support obligations may extend beyond 18 for several reasons, such as the child is in full-time education, has a disability, or has long-term medical needs. Courts assess the child’s financial needs and the parent’s ability to contribute. Legal counsel can assist you in resolving the complexities of extended child support obligations. There is also a formal process for winding down or terminating child support.

Why Choose Anthony Family Law for Child Support Disputes?

Anthony Family Law has extensive experience handling child support disputes in the Greater Toronto Area and Windsor. We offer strategic guidance, assertive advocacy, and a client-focused approach to resolving conflicts efficiently. Our skilled family lawyers bring unique skill sets from backgrounds in dispute resolution, commercial litigation, and financial law, making solving even the most complex support situations possible. Whether through mediation or litigation, we are committed to securing fair and legally sound child support arrangements.

Contact us today at 647-933-2397 for a free 20-minute consultation. Take the first step toward effectively resolving your child support matter.

When facing the financial aftermath of a separation or divorce in Toronto or other Ontario communities, understanding the tax implications of receiving alimony—commonly referred to as spousal support—is crucial. Spousal support can significantly impact your taxable income and overall financial situation, making it essential to grasp the rules set forth by Canadian law.

Alimony Under Canadian Law

Alimony, or spousal support, refers to the financial payments one spouse makes to the other following a separation or divorce. These payments address economic disparities between spouses, ensuring that one party does not experience undue financial hardship due to the relationship breakdown.

In Ontario, the Family Law Act governs spousal support for common-law partners. At the same time, the Divorce Act (R.S.C., 1985, c. 3 [2nd Supp.]) applies to married couples. The legal team at Anthony Family Law can assist with spousal support agreements for residents of Toronto or other Ontario communities. The laws aim to provide a fair distribution of financial resources based on the circumstances of the relationship and its dissolution.

Whether you’re the payer or recipient of spousal support, understanding the tax implications under Canadian law is vital to managing your finances effectively.

Is Alimony Taxable?

The Income Tax Act (R.S.C., 1985, c. 1 [5th Supp.]) sets clear rules on the taxation of spousal support. In most cases:

• Periodic spousal support payments are considered taxable income for the recipient. If you receive these payments, you must include them in your total income when filing your annual tax return.
• The payer of periodic spousal support can deduct these payments from their taxable income, thereby reducing their tax liability.

One critical distinction in Canadian tax law is the difference between periodic payments and lump-sum payments:

• Periodic payments are recurring payments made at regular intervals (e.g., monthly or quarterly). These are generally taxable for the recipient and deductible for the payer.
• Lump-sum payments are typically one-time payments made to settle spousal support obligations. These payments are not considered taxable income for the recipient and cannot be deducted by the payer.

A written agreement or court order must explicitly state the spousal support arrangement for periodic payments to qualify as taxable and deductible. Payments made without this documentation do not meet the criteria under the Income Tax Act.

Factors That Impact Tax Obligations for Alimony

Several factors can influence the tax treatment of spousal support in Canada. Understanding these nuances is essential to ensuring compliance with the law and avoiding unexpected tax liabilities. These factors include the type of payment, the existence of proper documentation, and the timing of payments.

Type of Payment

Understanding how the type of spousal support payment impacts your tax obligations is crucial for effective financial planning. The tax treatment varies significantly based on whether the payment is periodic or a lump sum:

• Periodic payments: These are taxable for the recipient and deductible for the payer. They are made at regular intervals and are subject to strict documentation requirements.
• Lump-sum payments: These payments are neither taxable for the recipient nor deductible for the payer. As a result, they do not affect either party’s annual income tax filings. This distinction is critical for financial planning, as lump-sum payments may not offer the same tax benefits.

Written Agreement or Court Order

Spousal support payments must be specified in a written agreement or court order to qualify for favourable tax treatment under the Income Tax Act. This formal documentation serves as proof for the Canada Revenue Agency (CRA) and ensures clarity for both parties. Without it, periodic payments may lose their deductible and taxable status, leading to potential disputes and compliance issues.

Timing of Payments

The timing of spousal support payments is another crucial factor. Payments made before a written agreement or court order is finalized typically do not qualify as deductible for the payer or taxable for the recipient. It is advisable to formalize all spousal support arrangements promptly to ensure compliance with CRA regulations and avoid unnecessary complications. Delayed documentation can lead to missed tax benefits and legal ambiguities.

Other Considerations

Several additional factors should be considered when assessing the broader impact of spousal support. These considerations may not directly fall under the primary tax guidelines but can still significantly influence your financial planning and compliance efforts:

• Residency: If one party resides outside of Canada, this may impact how the CRA treats spousal support payments.
• Taxable thresholds: Be aware of how additional income from spousal support could push the recipient into a higher tax bracket, affecting overall tax liability.

By carefully considering these factors, payers and recipients can better handle the tax implications of spousal support, ensuring legal compliance and minimizing financial stress.

Practical Tips for Managing Alimony Tax Obligations

Managing the tax implications of spousal support can be complex, but taking proactive steps can help you navigate this process smoothly. Here are some practical tips for recipients of spousal support:

• Keep detailed records: Maintain thorough documentation of all spousal support payments received, including dates, amounts, and the payer’s information. Detailed records will help you accurately report your income to the CRA.
• Understand your reporting obligations: Spousal support must be reported as taxable income on your annual tax return. Ensure you include the total amount received during the tax year.
• Consult a tax professional: Consider working with a Toronto-based tax professional familiar with Ontario-specific tax considerations. They can provide tailored advice based on your unique circumstances, ensuring you comply with all legal requirements while minimizing tax liability.

For payers, maintaining similar records and seeking professional advice is equally important to ensure the deductibility of payments.

How Alimony Affects Other Benefits and Credits

Receiving spousal support can impact your eligibility for various government benefits and tax credits, as it increases your taxable income. Here are some key programs to consider:

• GST/HST Credit: The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free quarterly payment to help individuals and families with low or modest incomes offset the cost of GST or HST. Since spousal support increases your taxable income, it may reduce your eligibility for this credit.
• Canada Child Benefit (CCB): The CCB is a tax-free monthly payment to families with children under 18. Your taxable income, including spousal support, affects the CCB you receive. Higher taxable income may result in lower CCB payments.

Understanding how spousal support affects these programs can help you plan your finances more effectively.

Seek Legal and Financial Guidance

The tax implications of receiving alimony in Canada can be complex, involving multiple factors such as the type of payment, written agreements, and the timing of payments. The Income Tax and Divorce Acts provide clear guidelines, but individual circumstances often require professional interpretation.

Whether you are the recipient or payer of spousal support, seeking advice from legal and financial professionals is essential. A family lawyer can help you understand your rights and obligations under Canadian law. At the same time, a tax professional can assist with CRA requirements and optimize your financial situation.

Anthony Family Law offers exceptional guidance on spousal support and family law matters for residents of Toronto and the Greater Toronto Area. Call 647-933-2397 today to ensure compliance with Canadian law and the ability to maintain your financial stability.

What Is Joint Child Custody?

Child custody – parenting time and decision-making responsibility in Ontario – can refer to two specific situations for parents.

• Physical custody (parenting time). This is where the child lives. In joint parenting time, each parent has the child with them for a specified period. That doesn’t necessarily mean the periods will be equal; for example, if one parent lives closer to the child’s school, the child may stay with them during the week so they have easier access to their education and spend the weekends with the other parent. 
• Legal custody (decision-making responsibility). This refers to the critical decisions that need to be made for a child’s well-being and are defined in Ontaro’s Children’s Law Reform Act as: health; education; culture, language, religion, and spirituality; and significant extra-curricular activities. In shared decision-making situations, the parents must make these decisions together, which can involve negotiation and compromise. The small daily decisions are handled by whichever parent the child is with at that time, such as whether the child can have a friend over after school.

Can Child Support Be Ordered if the Parents Share Joint Physical Custody?

People may assume that if physical child parenting time is divided as close to 50/50 as possible, there’s no reason for one parent to pay financial child support to the other. However, that’s not always the case, particularly when one parent has a much higher income than the other.

The court can determine an amount each parent would be responsible for, and then they would subtract the lower amount from the higher amount. The net amount would be what the court orders the higher-earning parent to pay.

How Is Child Support Calculated in Ontario?

In Canada, child support amounts are calculated using federal child support tables. These calculations take into account each parent’s income and the number of children involved.

Is Child Support Based on a Percentage of the Parent’s Income?

The monthly support for ordinary daily expenses is based not on a percentage of the paying parent’s income but on the federal child support tables mentioned above. That table calculates support amounts for a paying parent who earns between $12,000 and $150,000 annually. If the parent earns more than that, the courts have some latitude to adjust the amount accordingly, factoring in the lifestyle the child is used to, the financial situation of each parent, and what extraordinary expenses exist.

The court determines how extraordinary expenses are handled and calculates them based on factors including the number of children and the paying parent’s income, but not the recipient’s.

Is the Federal Child Support Table Amount Always the Amount That the Court Orders?

The tables usually set the amount for parents with incomes between $12,000 and $150,000, but there are some exceptions.

• The paying parent is a stepparent.
• The paying parent faces undue financial hardship or difficulties paying.
• The child is not a dependent.

In these cases, the court may order a support amount lower than the tables recommend, or they may not order child support payments at all. If you’re concerned that the amount you may be ordered to pay falls into one of these categories, contact an experienced child support lawyer in Ontario for assistance. 

How Long Do I Have to Pay Child Support?

In general, a parent pays child support until the child turns 18, or if the child moves out and becomes independent before turning 18, support ends when the child moves out. However, there are some exceptions. If the child attends undergraduate or graduate school full-time, the parent may pay until the education is completed. It’s more likely they’ll pay during the undergraduate degree than a graduate degree, but there are times when the court orders payments through advanced education.

If the child is disabled or has a chronic illness that affects their ability to earn a living, the parent may pay indefinitely.

Can Child Support Be Changed or Cancelled?

Either is possible, but there must be proof of a material change for the court to consider either action. A material change could be:

• The paying parent has a significant change in income, whether an increase or decrease.
• The dependent child develops a chronic illness or disability that wasn’t present when the original child support was ordered.
• The paying parent develops a chronic illness or disability.
• The child gets married. 

What Should I Do if I Need Help with Child Support Payments in a Joint Parenting Situation?

Call Anthony Family Law at 647-933-2397 to schedule a free consultation. Divorce is one of life’s most stressful events, and it can be even more so when issues of child custody and support are involved. Our team of experienced, knowledgeable child custody and support lawyers understands what’s at stake and how important this is to you. We can review the specifics of your case and help you determine what approach might lead to the best possible outcomes.

Divorce is a life-changing event. In particular, high-conflict divorces often involve significant emotional distress, contentious disputes, and sometimes a prolonged court battle. Whether it’s disagreements over property division, parenting, and decision-making matters, or spousal support, high-conflict divorces demand a strategic and sensitive approach.

Effective Communication During High-Conflict Divorces

Communication breakdown is one of the most significant contributors to high-conflict divorces.

When a divorcing couple has constant tension, it can be challenging to communicate genuinely and effectively. This results in further emotional stress and slows down the process even more. A primary role of the divorce lawyer in high-conflict cases is to act as a mediator or buffer between the parties. Mediation involves a neutral third-party mediator helping the couple discuss their issues and work toward a resolution outside court. It can be a much less confrontational and more cost-effective approach than a trial. This increases the likelihood that communication is productive toward finding a reasonable conclusion to the divorce.

A lawyer might suggest a collaborative divorce if mediation doesn’t work or the conflict is too high. In a collaborative divorce, both parties retain their lawyers, but instead of proceeding through the court system, they commit to working together to resolve issues in a series of meetings. The collaborative process typically involves other professionals such as financial experts, child specialists, or therapists, which can help ensure that both spouses’ interests, including emotional and economic needs, are considered.

Not knowing the next best step during a divorce is often overwhelming. Consulting with a divorce lawyer who knows how to make a legally sound plan can be an advantage in times of turmoil. At Anthony Law, we specialize in handling our client’s cases with the dedication and care each deserves. Call us today for a free case evaluation at 647-933-2397.

Seeking Professional and Emotional Support

A lawyer who shows understanding can help reduce the client’s anxiety about the process, which often mitigates emotional volatility in the divorce proceedings. Helping the client maintain a sense of perspective about the long-term effects of the divorce while managing short-term frustrations will lead to better decision-making. In addition to emotional support, lawyers should encourage their clients to seek counseling or therapy. High-conflict divorces can be tough on mental health, and having access to a therapist can help clients manage their emotional turmoil and gain perspective. When spouses in a high-conflict divorce have emotional support, they may be more willing to engage in constructive dialogue.

In high-conflict divorces that involve children, there may be cases of parental alienation, where one parent attempts to turn the child against the other parent. This form of manipulation can be very harmful to the child’s well-being and further fuel the conflict. In such cases, the lawyer may involve psychologists or other experts to assess the situation and recommend strategies to protect the child’s emotional health. A lawyer or a professional might recommend a parenting coordinator who helps manage the ongoing conflict between parents, ensures that the children’s needs are prioritized, and provides guidance on how both parents can interact in a healthier, less confrontational way. When both parents can step back from the conflict and focus on their children’s well-being, it often leads to more cooperative co-parenting arrangements. For reliable information on children’s issues and detailed documents,

Possibility of Litigation and How To Minimize It

While not all high-conflict divorces can be resolved through mediation or collaborative law, lawyers must strive to minimize the impact of litigation. Trials can be costly, emotionally draining, and time-consuming. For individuals embroiled in a high-conflict divorce, the thought of a lengthy court battle is often terrifying. As such, one of the primary objectives of any divorce lawyer in Toronto is to minimize the need for courtroom intervention while protecting the client’s interests.

One of the most potent tools a person can use in a divorce proceeding is negotiating and executing a separation agreement.

Both parties work to find areas where they can give and take to settle many if not all, outstanding issues between them. They draft a written legal contract outside of court and without a judge, ideally with legal counsel on both sides. Even in the most contentious divorces, it is often possible to find common ground. However, if all attempts at settlement fail and both parties are unwilling to compromise, litigation might be inevitable.

The Role of a Divorce Lawyer

A divorce process with high tensions and difficult communication is a process that hurts all parties involved. It’s in your best interest to seek a lawyer who can meet your case’s unique obstacles and support you along the way. Strategizing with your lawyer and carefully considering the path forward will increase your chances of ending the process sooner and with fewer issues. Even in the most contentious divorces, it is often possible to find common ground. Divorce lawyers will look for creative solutions to disputes that can help resolve issues without litigation. At Anthony Family Law, we know that our clients put their trust in us to give them the tools they need to make meaningful progress in their cases and help resolve them. Call us today at 647-933-2397 to schedule a free consultation.

What Rights Do Grandparents Have in Toronto?

It can be challenging to think in legal terms about what rights grandparents may have. Sadly, there are many times when parents separate and divorce, and one parent tries to withhold access to the grandchildren from the grandparents. This can be stressful for grandparents and also for the grandchildren who have previously had those grandparents as an essential part of the foundational years of their lives.

In Ontario, two laws apply to this situation depending on whether the parents have been previously married.

When parents have not married, the Children’s Law Reform Act (CLRA) may apply. This act gives grandparents the ability to request the court to grant them visitation. However, it doesn’t guarantee the court will allow it.

If the parents were married, the Divorce Act applies. Like the CLRA, it allows grandparents to request access to their grandchildren, but it doesn’t guarantee it. Unlike the CLRA, the Divorce Act requires non-parents to obtain the court’s permission first before they can apply for contact time with grandchildren.

What Factors Does the Court Use When Determining if Grandparents May Be Awarded Visitation Rights?

First and foremost, the family courts look at what’s in the child’s best interest. Every decision made by the court is influenced by that. The following factors are considered, too, but usually through the lens of what is best for the child:

• The relationship the child has with the grandparents. If the grandparents have been actively involved in the child’s life and are an essential part of it, the court may consider that the grandparents should continue to be involved. The reverse is also true; if the grandparents don’t have a history of being involved, the court may find that it’s not in the child’s interest to start a relationship while the child’s parents are divorcing.
• The ability of the grandparents to care for the child while visiting.
• The relationship the child has with each parent.
• The child’s age and stage of development. This can include evaluating the child’s need for stability and reliable routines and whether or not the grandparents provide some of that. 
• The child’s current and future needs for care and support. 
• The child’s wishes (depending on the age and maturity level).
• The ability to communicate effectively and calmly between parents and grandparents.
• The upbringing of the child to date, including any cultural and spiritual heritage (which includes Indigenous heritage).
• Whether or not there’s a history or current incidence of family violence that could affect the child. 

If you’re uncertain of your standing with your grandchildren, contact an experienced grandparents’ rights lawyer who understands not only the relevant laws but also your concerns and hopes for the future when drafting an approach to negotiation or court. 

Does a Parent Have the Right to Withhold Visitation from a Grandparent?

The answer to this is: It depends. The bottom line for the court is what’s in the child’s best interests. If a parent can conclusively prove that the child visiting the grandparents would cause the child more harm than good, the court may allow the parent to withhold visitation. However, if the court believes the child would benefit from having their grandparents involved in their life, the court may order the parent to allow visitation.

How Do We Pursue Getting Legal Visitation Rights with Our Grandchild?

The first step is to work with an experienced grandparents’ rights lawyer in Ontario who can review your case and help you understand what might be possible. Obviously, the best course of action would be to come to an agreement with the child’s parents, but that is not always possible. In those cases, the grandparents need to file a contact order with the court requesting visitation. They should be prepared to explain how this is in the child’s best interests and be prepared to counter claims from the parent that the grandparents shouldn’t be allowed visitation.

This can be highly stressful. It’s vital to remain calm when working through this process, but that can be tremendously difficult. Your lawyer can help you through the steps and remind you to remain calm.

Can Grandparents File for Custody of Their Grandchildren in Toronto?

Under many circumstances, grandparents wouldn’t be granted custody of their grandchildren if the only reason is that the grandparents want to. However, there are some situations in which the courts may consider granting them custody.

• Parental violence. Whether the parental violence is directed at the child or between the parents, that environment isn’t conducive to a safe upbringing. This requires proof of the violence and that the grandparents have a relationship with the child.
• Unfit parents. Whether it’s because of addiction, mental health issues, or neglect of the child, there are times when parents can’t manage the requirements of parenting. 
• Death. If the parents pass away, the grandparents may want to legally adopt the grandchildren. 

What Should We Do if We Want to Pursue Getting Legal Visitation with Our Grandchildren?

Call Anthony Family Law as soon as possible at 647-933-2397 to schedule a free consultation. We understand how crucial it is for you to be part of your grandchildren’s lives. We also understand how it can be equally vital for your grandchildren to have you in their lives. Our team of experienced, knowledgeable grandparents’ rights lawyers in Ontario can review your case and help you understand what your rights are and what the legal approach should be to achieve optimal outcomes.

Do You Share a Child With the Spouse You Are Divorcing?

When divorcing spouses are also parents, the difficulties that a divorce entails are multiplied. If you are divorcing or anticipating a divorce in Ontario, and if you share a child with the spouse you are divorcing, a Toronto child custody lawyer can help. In Ontario, custody and access are grouped under parenting arrangements and are called decision-making responsibility and parenting time.

If you and your partner can agree on the custody and child support arrangements, you will both save time and money and avoid a great deal of aggravation. An Ontario child support lawyer can help you prepare child custody and child support agreements that a judge will approve.

But if your divorce is hostile or bitter, and if you can’t reach agreements about child custody or child support, a judge will make those decisions. Your lawyer will explain Ontario’s parenting arrangement and child support laws, answer your questions, and prepare the legal paperwork on your behalf.

Is a “Final” Divorce Agreement Always and Really Final?

Even if your “final” divorce agreement settled a child custody or child support dispute, in the future, changing life circumstances may require you – or your ex – to ask the court for a modification of the child custody or child support agreement.

How do you have the court modify a child custody or child support order in Ontario? What do you have to prove to the court? And if you request the modification of a child custody or child support order, can your ex challenge that request in court?

How Can You Change a Child Custody or Child Support Order?

Either parent may ask a court in Ontario to modify a child custody or child support order if that parent’s (or the child’s) life situation has changed and a modification is necessary. For instance, a child custody or child support order may have to be modified if:

1. The child’s medical or educational needs have changed.
2. Either parent becomes disabled, seriously ill or injured, incapacitated, or unemployed.
3. Either parent remarries or becomes the parent of a newborn with a new partner.
4. Either parent wants or needs to relocate to another jurisdiction.
5. Either parent is convicted of a serious crime or institutionalized for some other reason.

Modifying a custody or child support order is a quite complicated legal procedure, so you must have an Ontario family law lawyer prepare the legal documents that will be needed to begin the modification process.

How Often Can You Modify a Child Support Order?

A private agreement between parents to modify a child support order has no legal force. After the parents negotiate and sign a child support modification agreement, your Toronto child support lawyer will help you complete Form 15D and will submit that form to the court on your behalf.

Most voluntary child support modifications between divorced parents are approved, but the court may hold a hearing to make certain that the agreement is in the child’s best interests. The court will consider a modification only after a significant change in circumstances.

Not all changes in income justify a child support modification, and not every request for a child support modification requires a hearing. Your child custody lawyer can provide personalized advice that will apply to your own situation. There is no limit to the number of times a child support order may be modified. What is required is a significant change in circumstances such as those listed above.

How Often Can You Modify a Child Custody Order?

If both divorced parents agree on a proposal to change their child custody order, your lawyer can submit a consent request to the court, and provided that the agreement is in the child’s best interests, the court should approve it.

If the other parent contests your proposed modification, your lawyer will file a motion requesting the modification. A court hearing will be scheduled where you and your lawyer will present your case for the modification and your ex (and his or her lawyer) will make the argument against it.

Like child support orders, there is legally no limit to the number of times a child custody order may be modified, but a modification will be granted only if there has been a considerable change in circumstances and if the modification is deemed by the court to be in the child’s best interests.

What Else Should Parents Know About Modifying Court Orders?

Whether your request to modify a child custody or child support order will be approved depends on the facts of the case. There are no guarantees. Whether you are requesting a modification or challenging a request by your ex, you must have sound legal advice from a child custody lawyer from the beginning.

Especially if you have been ordered by the court to make child support payments, but you are no longer able to continue making those payments, you must reach out to an Ontario family lawyer immediately and ask that lawyer to help you modify the court’s child support order.

A failure to make timely child support payments may be penalized with the garnishment of your wages and/or bank accounts, the suspension of your driver’s license and/or passport, and/or, in the most egregious cases, time in jail.

Let Anthony Family Law Advocate on Your Family’s Behalf

If you need to modify a divorce-related court order in the GTA or in Windsor, bring the matter immediately to the legal team at Anthony Family Law. Family lawyers Jeffrey Ordon and David Anthony have established a reputation for extraordinary client service and effective courtroom representation.

Anthony Family Law will review with you the requirements for the modification of a court order and will advise you through every step of the legal process. We will submit the paperwork to the court, prepare you for any hearings, and accompany you when and if a hearing is scheduled.

We are skilled and experienced at resolving the most complex and contentious child custody and child support disputes. If you need a court order modified or help with any other matter of family law, now or in the future, promptly call the offices of Anthony Family Law at 647-933-2397.