Are annuities included in calculating child support?

In Tookenay v. Laframboise, 2015 ONSC 2898 a husband and a wife had separated after a seven-year marriage. They had two young children, being eight and four years old at trial in this case.

The following issue came before Justice Newton on the issue of child support - when determining the father’s child support obligation, should an annuity he receives from a personal injury claim (settled when he was two years old) be included in determining his income for child support purposes?

The father’s position was that the annuity should not be included in his income because it was intended to repair the damage he had suffered from an accident.

Justice Newton found that the monies used from the settlement for ordinary expenses ought to be included as income. However, monies from the settlement, which were used for medical expenses or rehabilitation expenses should not be imputed to the father as income. Justice Newton ultimately finds that half of the monthly annuity payments were income.

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