How Is Child Support Calculated if the Payor Is Self-Employed in Ontario?

Child support is based on the paying parent's income, and for a self-employed payor that income is not always the number at the bottom of the business accounts. Income starts from "Total income" on the tax return. Where that figure would not be the fairest measure, the court may look at income over the last three years.

A court may impute income where a parent has diverted income, does not reasonably use property to generate income, or unreasonably deducts expenses. A self-employed parent must also provide business or professional practice financial statements for each of the past three years and a breakdown of salaries, wages and benefits paid to others. If disclosure is withheld, the court may draw an adverse inference and impute income.

Dividends and taxable capital gains are counted at the actual amounts received or realized. The online Child Support Service is not available where the payor is self-employed. How write-offs or money left in a company are treated depends on the facts, so confirm with a lawyer or accountant.