What is the impact of a corporation on a payor's Guidelines income for child support purposes?
British Columbia, Canada
The following excerpt is from Andreassen v. Andreassen, 2016 BCSC 1196 (CanLII):
These comments illustrate the need to focus on the substance of any transaction or mode of receiving income rather than the form of any payments to a corporation. The objective of this approach is to ensure that a payor’s Guidelines income reflects the money reasonably available for child support purposes: see Richardson v. Richardson, 2013 BCCA 378 at paras. 54-55.
Generally a payor’s capital is not considered money available for child support but income earned on capital is conceptually available for that purpose. In Jeffery v. Motherwell, 2006 BCSC 140, the court discussed the purpose and application of s. 18 and outlines it is the payor’s onus to demonstrate what income or assets of the company are unavailable to him:
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