Child Support When the Paying Parent Is Self-Employed in Ontario

When a parent is self-employed, the tax return may not tell the whole story. Business write-offs, money left in a company and uneven earnings can make a parent's income look lower than what is really available. That worries recipients, and it also matters to self-employed payors who want a fair figure.

This article explains how Ontario family courts generally look at business income for child support, what documents are required and where the process can get complicated.

Where income for child support starts

The Divorce Act and the federal Guidelines apply to married spouses who are divorcing. Unmarried parents, and married parents who are not seeking a divorce, are governed by Ontario's Family Law Act and the Ontario Child Support Guidelines. Which rules apply to you is worth confirming with a lawyer.

Under the federal Guidelines, income for child support is the spouse's annual income. It starts from 'Total income' on the T1 General tax return and is adjusted under Schedule III. Which adjustments apply to a particular business is worth confirming with a lawyer or accountant.

That income figure drives the table amount, which also depends on the number of children and the province where the payor lives. Where income is over $150,000, the court may order the full table amount, or the table amount on the first $150,000 plus an amount it considers appropriate for the rest.

Updated Federal Child Support Tables took effect on October 1, 2025, and Ontario's government says the new table amounts apply to all Ontario child support matters starting that date. An order made before then does not change automatically, but a difference between the old amount and the 2025 table amount may count as a change in circumstances that lets a parent ask for an update.

Special expenses, such as child care or extraordinary extracurricular costs, are paid on top of the table amount. The court decides on them at a spouse's request, considering whether each expense is necessary in the child's best interests and reasonable given the family's means and its spending before separation. Where an expense is shared, the guiding principle is that the spouses share it in proportion to their incomes, after deducting any contribution from the child. That makes an accurate income figure matter twice.

Income that is kept in a company

If the payor is a shareholder, director or officer of a corporation, the court may count all or part of the corporation's pre-tax income as that person's income, or an amount for the services the payor provided, up to the corporation's pre-tax income. This can capture earnings kept in the company rather than paid out.

Salaries, wages or fees paid by the corporation to people it does not deal with at arm's length, such as family members, are added back to its pre-tax income unless shown to be reasonable.

Write-offs, under-employment and imputed income

A court may impute income to a spouse who is intentionally under-employed or unemployed, or who unreasonably deducts expenses from income, such as business write-offs. Imputing means the court treats the person as earning a higher figure than the tax return shows.

There is an exception. Income is not imputed where the under-employment or unemployment is required by the needs of a child, or by the spouse's reasonable educational or health needs. A payor who has genuinely reduced work for one of those reasons is treated differently from one who simply reduced reported income.

Uneven income and disclosure

If income varies, as it often does in seasonal work or self-employment, the court may consider the spouse's income over the last three years to find a fairer figure.

A spouse whose income is in issue must provide personal income tax returns for each of the three most recent tax years. A self-employed spouse must also provide three years of financial statements and a breakdown of payments to non-arm's-length persons. After support is set, on written request and no more than once a year, the paying spouse must provide updated income documents within 30 days (60 days if living outside Canada and the U.S.).

• Personal tax returns for the last three years.
• Notices of assessment and proof of current income.
• Three years of business financial statements.
• A breakdown of payments to family members or others not at arm's length.

What to do next

Self-employed cases are usually not suited to the online Child Support Service. It is unavailable if the payor is self-employed, earns over $150,000 or under $12,000, earns cash income, or is a partner or majority shareholder in a business. In court, Form 8 sets up support, Form 15 asks for a change without the other parent's consent and Form 13 is the financial statement.

If a payor's income drops, for example after a job loss, that can be a change of circumstances for variation. A court may vary a support order only after it is satisfied that a change of circumstances has occurred since the order was made or last varied. The Family Responsibility Office cannot change the amount owed, only a judge can, and arrears keep building under the existing order until it is changed.

• Recipients: ask in writing for the full set of disclosure documents.
• Payors: organize your returns and financial statements before you are asked.
• Keep records that show why business expenses were reasonable.
• Speak with a lawyer or accountant about how your business income may be treated.

Frequently asked questions