Annual Income Disclosure is Mandatory in Ontario
Prove compliance using Support information Exchange www.yoursix.ca
 
Annual Disclosure of Special Expenses is Mandatory in Ontario
Instant proof of section 7 expenses & payments. Register at www.yoursix.ca

Annual Income Changes

Most separation agreements and the majority of court orders in Canada and the United States contain clauses which require the parents to annually exchange income tax information and special expense details for child support purposes.  Serious financial consequences may arise for those who fail to comply. The Ontario Child Support Guidelines require parties to child support orders or agreements to exchange support information annually. Serious financial consequences may arise for those who fail to comply.

Effective March 1, 2010 all support orders in Ontario require annual updating of income. Specifically all orders contain the following cause:

For as long as child support is to be paid, the payor and recipient, if applicable must provide updated income disclosure to the other party each year, within 30 days of the anniversary of this order, in accordance with section 24.1 of the Child Support Guidelines.

Section 24.1 of the Child Support Guidelines specify that the tax return for the most recent year, including any materials included in the return such as T4 slips and the Notice of Assessment or Reassessment from CRA MUST be supplied to the other party each year. In addition, the parties MUST supply current information in writing about the status and amount of any special expenses ( section 7 expenses ) and details of any student loans, scholarships or bursaries that will affect a court order for post-secondary expense contributions.

There is no doubt that payors who do not comply with this requirement will be liable for retroactive child support based on annual income increases. Payor’s who experience an income reduction will not likely receive a retroactive arrears reduction on a motion to change if the annual income disclosure has not been provided.

Similarly, recipient’s will have great difficulty securing an increased contribution toward special expenses ( section 7 ‘s ) or post-secondary costs if this annual disclosure requirement has not been followed.

Apart from these new mandatory requirements in Ontario, most separation agreements contain clauses which require the parties to annually exchange tax information and special expense details.

The risk of ignoring this annual disclosure requirement can be financially devastating.

Payors and recipients should register with the support information exchange in order to protect themselves. The support information exchange is designed to help parents organize, manage and comply with their child support responsibilities.

HOW DO YOU PROVIDE THE REQUIRED ANNUAL DISCLOSURE TO THE OTHER PARTY

The Ontario Attorney –General web site confirms that the required information must be provided to the other party . It is up to the parties to provide the information to one another. This leaves open the possibility for dispute or disagreement in a number of areas such as:

  1. How can you prove that the required information was actually provided ?
  2. How can you prove that you provided everything that is required ?
  3. How do provide the required information if the parties do not have contact information for each other ?
  4. What do you do if you do not wish to have direct contact with the other party or are afraid of or intimidated by the other party ?
  5. What do you do if you are not allowed to have contact with the other party due to a legal restriction such as a retraining order, bail condition or probation order ?

With Support Information Exchange www.supportinformationexchange.com parents can exchange annual income information and information regarding special expenses or section 7 costs in a secure private mail box. Either party can download the entries from the mail box to prove disclosure compliance in any future court proceeding or dispute resolution process.

This site is absolutely secure and private. No direct contact between the parties is necessary or required. Contact information is not provided to the other parent.

The Support Information Exchange   Ledger is a permanent record of all entries to the exchange . When a tax return is uploaded to the exchange by a payor, the  Ledger is updated and automatic notification is provided to the recipient.

The  Ledger can be downloaded at any time by either party to provide absolute proof of every document that has been provided and the date of notification.

The exchange provides proof that the court ordered or agreed upon income notification requirements have been complied with.

Parties will always have immediate electronic access to their court orders or agreements , tax documents and special expense invoices and receipts.

The Ledger tracks the special expense entries of the parties. The entries can be used to create an excel spreadsheet or Statement of Arrears for use in Court or with the Family Responsibility Office or other provincial or state enforcement agency.

Parents and lawyers should consider adding the following clauses to separation agreements and court orders:

  1. The parties shall immediately register with Support Information Exchange www.supportinformationexchange.com
  2. All information required to be provided by either party to the other herein regarding support issues, including, but not limited to, income tax returns, attachments , T4 slips and Notices of Assessment or Reassessment and all information regarding section 7 or special expenses shall be exchange between the parties through their Support Information Exchange account.
  3. The parties agree to register active email address accounts with the Support Information Exchange