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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...

Krol & Krol

When courts are faced with the task of assessing whether one of the parties to a matrimonial matter are entitled to interim support, two components will be analyzed: whether the applicant is in need of the support and whether the respondent has the ability to pay. In the case of Knowles v. Lindstrom, 2015 ONSC 1408 Justice Penny outlines that: "[t]he parties agree that 'need' in cases such as this relates not only to basic shelter and necessities but to a lifestyle that is commensurate with the lifestyle enjoyed during the relationship, provided the other spouse has the ability to pay. Thus, the accustomed standard of living during a relationship is the appropriate content in which a payee spouse's need should be assessed." Justice Penny further explains that an applicant who presented a modest expense budget in his/her Financial Statement should not be penalized for failing to spend beyond their means or for failing to advance, as their monthly budget, lavish expenses they are not actually incurring. In that regard, Justice Penny states: "The applicant has presented a modest expense budget of approximately $76,000. As noted above, I do not think the applicant should be penalized for failing to spend beyond...

Krol & Krol

In my marriage certificate (dower) from Iran, it states that my husband must pay me a sum of money on demand. We now live in Ontario. Is this contract enforceable in Ontario? According to section 58(a) of the Family Law Act: "The manner and formalities of making a domestic contract and its essential validity and effect are governed by the proper law of the contract, except that, a contract of which the proper law is that of a jurisdiction other than Ontario is also valid and enforceable in Ontario if entered into in accordance with Ontario’s internal law." Furthermore, according to section 52(1)(d) of the Family Law Act: "Two persons who are married to each other or intend to marry may enter into an agreement in which they agree on their respective rights and obligations under the marriage or on separation, on the annulment or dissolution of the marriage or on death, including, any other matter in the settlement of their affairs." In addition, pursuant to section 55(1) of the Family Law Act: "A domestic contract and an agreement to amend or rescind a domestic contract are unenforceable unless made in writing, signed by the parties and witnessed." In Ghavamshirazi v. Amirsadeghi, the...

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A mahr is a type of marriage agreement that contains particular conditions regarding payments, in the form of cash or in the form of property, that the husband would be required to give his wife in the event of divorce, or if he dies. In the Muslim tradition, Muslim marriage contracts must include a mahr, even if the marriage takes place in Canada, the United States, or elsewhere. A concept upon which a mahr is drafted is as a gift that a husband agrees to give his wife at the time of marriage; however, usually this payment is only given and enforced if the marriage ends, or if the husband dies. The value outlined within this form of marriage agreement varies, depending on the financial situation of the husband at the time of the marriage. Though usually the parameters refer to money, the agreement may outline jewelry, gold or any other valuables or property that the husband owns. The purpose underlying the drafting and signing of a mahr is that wives, in the Muslim tradition, obtain some form of financial security in the event that she can no longer rely on her husband to support her financially. In Canada, there...

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A pre-nuptial agreement is also known as a marriage contract or a "pre-nup." A pre-nuptual agreement is a type of domestic contract that can be made in the province of Ontario between two individuals who intend to get married. The pre-nuptual agreement itself lays out what will happen if the parties divorce in the future, such as the terms of any divorce. Provisions in these types of agreements may include, but are not limited to division of property and spousal support in the event that the couple gets a divorce in the future. In order to make the agreement more resistant to attack, parties ought to: Exchange financial disclosure; and, Have independent legal advice. In order for a pre-nuptial agreement to be legally binding, the agreement must be in writing, signed, and witnessed. A post-nuptial agreement is similar to a pre-nuptial agreement. The only major difference between the two is that a post-nuptial agreement is executed after the couple is legally married. For more information on pre-nuptial and post-nuptial agreements, as well as the services provided by Krol & Krol in the area of family law, call 905.707.3370.

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A marriage contract (also referred to as a prenuptual agreement) determines specified issues between a married couple if the marriage comes to an end. These contracts may deal with issues such as spousal support and property. Once you are married, you and your spouse may still sign a marriage contract. If you are the party who would like a marriage contract in place and you get married without a marriage contract, your spouse may thereafter decline to sign the contract. Therefore, it may be preferable for these issues to be determined before the marriage takes place.

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