A practical checklist of the income documents, expense records and financial statements to gather when setting or changing child support in Prince Edward Island.
⚖️ This is general information, not legal advice. It can't account for your specific situation. Use it to get oriented, then confirm the details with a lawyer who practises in Prince Edward Island.
This checklist is for parents in Prince Edward Island who need to set, change or review child support and want to know which financial documents to gather and share. It covers income records, special expense receipts, financial statements and the deadlines that can apply. Work through the sections in order and tick off what applies to you. Which documents and forms you need depends on your situation, including whether you were married and whether the claim is under the Divorce Act or a PEI statute, so confirm the details with a lawyer before you file.
Understand what the documents are for
The presumptive child support amount is the table amount for the paying spouse's income and number of children, plus any section 7 special or extraordinary expense amount. Income is worked out under the Federal Child Support Guidelines, starting from the Total income line of the T1 General tax form and adjusting it under Schedule III.
Table amounts are updated from time to time, so check the current tables before relying on any dollar figure. In PEI, the Family Law Act Child Support Guidelines Regulations adopt the federal tables for the province.
Gather your tax records
- Copies of every personal income tax return you filed for each of the three most recent taxation years.
- Every notice of assessment and reassessment for those same three years.
- Any missing returns or notices: if you cannot find them, request copies from the Canada Revenue Agency early.
- A note of any years you did not file, so you can raise it with a lawyer before you are asked.
Prove your current income if you are an employee
- Your most recent pay stub showing total earnings paid in the year to date, including overtime.
- If your employer does not provide a pay stub, a letter from the employer stating your annual salary or remuneration.
- Recent T4 slips, which help match your pay records to your returns.
- Records of bonuses, commissions or taxable benefits, since income is adjusted from your tax return.
Business, partnership, corporation and trust records
- Self-employed: the financial statements of the business or professional practice for the three most recent taxation years, and a breakdown of salaries, wages, management fees or other payments to non-arm's-length persons or corporations.
- Partners: confirmation of income received from the partnership, your draws and your capital in it for three years, instead of sole-proprietor statements.
- Controlling a corporation: financial statements of the corporation and related corporations for three years, plus a breakdown of payments to non-arm's-length persons or corporations.
- Trust beneficiary: the trust settlement agreement and the trust's three most recent financial statements.
- Be aware that a court may add part or all of a corporation's pre-tax income to a shareholder, director or officer's income, and may add back non-arm's-length payments unless shown to be reasonable.
Other income sources and fluctuating income
- Employment insurance, social assistance, pension, workers' compensation, disability or other income: the most recent statement of current-year income from each source, or a letter from the payer if none is issued.
- If your income changes a lot from year to year, the court may look at your income over the last three years and fix a fair amount, which is why three years of returns are requested.
- Keep records explaining any recent job loss, reduced hours or career change.
- Be aware that a court may impute income where a spouse is intentionally under-employed or unemployed, diverts income, or fails to provide required income information.
Collect section 7 expense records
On request, a court may add amounts for child care costs, the child's share of medical and dental insurance premiums, health-related expenses over insurance reimbursement, extraordinary school or educational program costs, post-secondary education costs, and extraordinary extracurricular activity costs. These expenses are shared in proportion to the spouses' incomes, so both parents' income documents matter, and receipts or other proof are needed to show the amount.
The court must also take into account subsidies, benefits, and income tax deductions or credits relating to the expense, so gather records of those with the receipts. Where each parent has the child at least 40% of the time over a year, the court does not simply use the table. It considers both parents' table amounts, the increased costs of shared arrangements, and each parent's resources and needs.
Prepare the court financial statement
- Ask which financial statement applies to you: under Rule 70.14 of the PEI Rules of Civil Procedure, the judge sets which statement (Forms 70I(A) to 70I(D)) each spouse must file and by when.
- Under the Family Law Act, in support and variation applications each party must serve on the other and file a financial statement verified by oath, in the form the court rules prescribe.
- Under the Children's Law Act, a party must file a sworn financial statement when the court directs, and the court must award costs against a party who fails to do so without reasonable cause.
- A waiver of financial statements (Form 70J) is available only for Divorce Act support claims, not claims under the Family Law Act.
- If you find your filed statement is wrong or incomplete, correct it promptly.
- Do not ignore a court order about statements: a spouse who does so risks dismissal of the action, striking of the answer, or contempt.
Know the deadlines for exchanging documents
A spouse served with a child support application must give the income documents to the court and the other spouse within 30 days after service if resident in Canada or the United States, or 60 days if resident elsewhere, unless the court sets another time limit. If special expenses or undue hardship are claimed, the spouse who would receive support must provide their income documents within 30 days (60 days if resident outside Canada and the U.S.) or any time the court sets. Once the paying spouse's income is established as over $150,000, the other spouse must also provide theirs within the same time frames.
PEI court rules on financial statements apply alongside these federal rules. The exact order of filing and serving documents depends on your type of case, so confirm it with a lawyer or the court registry.
After an order: ongoing disclosure and changes
- Once an order exists, a paying spouse must, on written request made not more than once a year, provide the income documents for any of the three most recent years not already provided, plus written information on current section 7 expenses and any undue hardship.
- Respond within 30 days if you live in Canada or the United States (60 days elsewhere); a request is treated as received 10 days after it is sent.
- A spouse receiving support must also respond if that spouse's income was used to set the amount, and so must a spouse found to owe nothing because income was below the table minimum.
- Do not ignore a request: the court can find a spouse in contempt, award full-compensation costs or order production, and any clause limiting this duty is unenforceable.
- Under the Children's Law Act, a new variation application on a child support order cannot be made within six months of the order or of a prior variation application on the same order without leave of the court.
What happens if disclosure is not made
If a spouse does not comply with the disclosure rules, the other spouse may apply for a hearing or motion for judgment, or for an order requiring production of the documents. The court may award costs that fully compensate the other spouse. Where the court proceeds to a hearing on an application under section 22(1)(a) of the Guidelines, it may draw an adverse inference against the spouse who failed to comply and impute income to that spouse.
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This is not legal advice
This guide is general information, not legal advice. Reading it does not create a lawyer-client relationship. Prince Edward Island laws and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a lawyer who practises in Prince Edward Island. Reach us at 1-844-900-1070 or start a file online.