How is support related to my Line 150 income?

When calculating a party’s child or spousal support obligation in family law, the payor's obligation is based on his or her income as indicated on Line 150 of his/her Income Tax Return/Notice of Assessment (subject to certain adjustments which are specifically stipulated in the Federal Child Support Guidelines).

However, there are cases where a payor's Line 150 income does not correctly convey how much money s/he is actually earning in a given year. Common examples of this surface when an individual owns a business or is self-employed. In these cases, recipients of support often argue that the payor is, in fact, earning more income than is reflected on Line 150 of their Income Tax Return and Notice of Assessment.

It is also interesting to note that there are cases where a party’s Line 150 income is overstated. In the case of Stober v. Stober, the Court notes that child and spousal support obligations are based on the income available to the payor and not on his/her Line 150 income without regard to any other evidence. Clearly, the evidence available to the parties and to a Court is crucial to any such an argument. In Stober, much to the wife’s dismay, Justice Weatherill decreased the husband’s income from $1,000,000 (stated as his Line 150 income) to $600,000.00. It appears that based on the accounting evidence presented, the Judge was convinced that the husband did not have $400,000 available to him in the relevant year.

It is, nevertheless, to be noted that it is rather rare for judges to determine that the income available to a payor is less than the income stipulated on his/her Line 150.

To learn more about Line 150 income as is relates to a payor's support obligations in your case, schedule a consultation by telephoning 905.707.3370.