How Alberta business owners calculate child support
Divorce and/or separation proceedings can be an emotional and complicated process for all parties involved. It can be even more challenging for business owners as there are additional considerations unique from most other divorces. When divorce proceedings include business owners – the calculation of child support payments can become a rather complex and challenging process. In situations like this, we recommend you consult with a divorce lawyer to review what your options are as well as answer any complex questions you may have with regards to your divorce and subsequent child support payments.
The Federal and Alberta Child Support Guidelines are two legal frameworks designed to provide guidance on financial support payments. However, as a business owner some sections of these frameworks may or may not apply to you during your divorce proceeding and requires individual legal advice and interpretation to your unique and individual situation. For example, if you are a business owner that is married – the Federal Child Support Guidelines may be used to govern child support calculation whereas if you are not married, the Alberta Child Support Guidelines may be used as a reference point to calculate child support payments. Both the Federal and Alberta Child Support Guidelines make sure that regardless of your marital status and as a business owner – the courts will be looking very closely at the amount that you as a business owner are claiming as an expense. Hiring an experienced family lawyer to help reduce the complexities of your case as they pertain to child support payments is highly recommended in a situation like this.
The Alberta Child Support Guidelines
The Alberta Child Support Guidelines require parties to disclose things like income, debt, assets, expenses and other relevant financial information as they pertain to divorce proceedings. In the case of business owners, chartered professional accountants or chartered business valuators can assist business owners with providing this information as they relate to divorce proceedings as well as inform the relevant party as to what their options are.
The Federal Child Support Guidelines
The Federal Child Support Guidelines are a set of guidelines that explain how financial assistance for minor children will be calculated. Additionally, it serves to fulfill four major objectives including:
- Establish a fair standard of support for children that they continue to benefit financially even after both spouses have separated
- Reduce conflict and tension between spouses by making the child support calculation process more objective
- Improve efficiency of the legal process as they pertain to child support calculations
- Ensure consistent treatment of spouses and children
What Information Is Required To Prove Income During Child Support Deliberations?
During divorce proceedings – a business owner may be required to provide extensive financial documentation. The purpose of providing documentation on the below items is to assist with the assessment of the required child support amount. Some of the required documentation may include:
- Business financial statements
- Earnings slip
- Tax returns
- Re-assessment records
- Insurance as it pertains to your business
- Workers compensation information if applicable
- Disability information if applicable
- Public assistance records if applicable
- Partnership information
- Trust settlement records
- Pre-tax income records
- And more
If you are a business owner and believe you need to dispute the amount of child custody payments you are required to make then contact our Edmonton law office today. There are too many complexities to discuss here with regards to child support payments as a business owner and it’s best to seek legal assistance regarding your individual situation.
At Verhaeghe Law Office – our Edmonton family lawyers have helped numerous business owners embattled in child custody payment disputes. Where things can get complex in a situation like this is when business finances become embroiled with personal finances which may leave the justice system to interpret your financial situation very differently than how Canada Revenue Agency does. We encourage you to seek legal counsel if you are a business owner and are about to or are currently going through divorce proceedings and especially if there is a debate on the child custody payments you are required to make. We can help you prepare and work towards an expeditious and reasonable payment arrangement as we help navigate you through your divorce proceedings. Contact us for a consultation today by calling 587-410-2500 and speak directly with one of our Edmonton divorce lawyers.
*Please note the content in this blog does not constitute legal advice as every case is unique from one another. Child support calculations are best supported by legal advice based on your specific circumstances. This blog offers a general overview and does not constitute legal advice.
We encourage you to seek legal advice for answers related to your divorce and/or family law questions.