Changing Child Support When Income Changes in BC

Incomes change. A payor may lose a job or take a pay cut, and a recipient may learn that the other parent now earns much more. Either way, you may wonder whether the support amount still makes sense.

The short answer is that the existing order or agreement stays in place until it is properly changed. This article explains the test, the recalculation service, and what to gather.

This article covers the law of British Columbia.

Do not change the amount on your own

Support does not end automatically under an existing order. A court may change, suspend or terminate a child support order, prospectively or retroactively, on application. Until that happens, the order is the starting point.

Informal side deals are risky. Parents cannot agree that the other does not have to pay child support, because support is the child's legal right. If you have a written agreement or order, it can be enrolled with the BC Family Maintenance Agency, which can enforce it if necessary; an agreement must first be filed with the court registry to be enrolled.

The legal test for a change

Under the Family Law Act, before changing, suspending or terminating an order the court must be satisfied of one of three things: a change in circumstances under the guidelines, substantial new evidence unavailable at the earlier hearing, or evidence of a lack of financial disclosure discovered after the last order. Under the Divorce Act, the court must be satisfied that a change of circumstances provided for in the applicable guidelines has occurred.

For an order set using a table, a change of circumstances is any change that would result in a different child support order. A meaningful income change is usually the example. For orders not set using a table, it is any change in the condition, means, needs or other circumstances of either parent.

Some situations do not follow the plain table result. If the payor's income is over $150,000, the court may apply the table or may set the table amount for the first $150,000 plus an amount it considers appropriate for the balance. If each parent has at least 40% of parenting time over a year, the court must consider the table amount for each parent, the increased costs of shared arrangements, and each parent's circumstances. Where each parent has majority time with at least one of two or more children, support is the difference between the amounts each would otherwise pay.

Recalculation service: sometimes no court is needed

The BC Child Support Recalculation Service reviews eligible orders and agreements each year. It adjusts support using the paying parent's income tax information and the Guidelines tables. The service is free and applies through the CSRS Portal (1-866-660-2684).

Not every order will be eligible, and some situations, such as sharing parenting time or an older child, may be handled differently. A lawyer can help you confirm whether your order qualifies.

How income is worked out

Annual income is generally found from the Total income heading of the T1 General tax form, adjusted under Schedule III. Where income fluctuates, the court may look at the last three years. Table amounts depend on the payor's income only.

As an example of how the BC table moves, here are some sample monthly amounts for one child. The official table sets income rows in $1,000 steps, so look up your exact row there.

Be aware that a court may impute income where a parent is intentionally under-employed or unemployed. A job loss that is voluntary may be treated differently from one that is not. For self-employed payors, the court may include part of a corporation's pre-tax income.

What to do next

• Keep paying the current amount while you work out the next step, unless a lawyer advises otherwise.
• Gather proof of the change: termination letter, new pay stubs, or notices of assessment.
• Collect tax returns. In a court case, an applicant must include the other parent's returns for the three most recent taxation years, and a respondent has 30 days in Canada or the U.S. to provide income documents.
• Check whether the Child Support Recalculation Service can handle your order.
• Get legal advice before applying, particularly if shared parenting, a self-employed payor or an older child is involved.

Frequently asked questions