- Revenue Canada's Treatment of Legal Expenses
Some legal expenses incurred in family law support cases can be claimed in one's tax filings. There is a distinction between collecting support owed to you and establishing that amount owed to you, but there is no tax deduction for litigating costs to create a right to spousal support.
- What qualifies as income? Do performance and signing bonuses constitute income for the purposes of calculating support, etc.?
The case of Rogers v. Rogers (2015 ONSC 7794) dealt with a structured signing bonus, which is contingent on the employee staying a certain period of time. Under this scheme, a "transitional loan" will only be payable after the employee has stayed for a certain period determined in the Employment Contract. The wife in this case wanted to impute income to the husband for his bonuses, which would almost double his income.
- Do you have to continue paying spousal support when you retire? What is a "material change in circumstance" that would change the amount of support?
Retirement does not necessarily end spousal support, and after a long marriage, you cannot voluntarily decide to retire early to artificially deflate your income in order to reduce support payments. Courts can impute income to you.
- What is a Vesting Order? Can a Court order this to compensate a Party for the other Party's Non-compliance?
The Court in the case Newton v. Newton (2014 ONSC 2757) used its discretion to sanction the wife for her repeated and significant violations of Court Orders. The husband requested the Court to vest in him the wife's equity of the home.