Income

 

Overview in 25 Clicks

WHY DO I HAVE TO CALCULATE MY INCOME?  

Many people are uncomfortable speaking about their income. The law expects you to provide full financial disclosure (sometimes annual disclosure), including tax returns and other documentation, about your income and other forms of compensation you receive or are entitled to receive.  Why?

  1. To make full disclosure of your income to your partner

  2. As a required step in calculating Child Support and Spousal Support arrangements or obligations (In most cases, your income will be calculated the same way for both).

How do you calculate your income?

  1. Gather documents such as:

    • Your 3 most recent tax returns.

    • The Notice of Assessment of your 3 most recent tax return (the Government calculation)

    • If it applies, the last 3 years of Business or Corporate Financial Statements

  2. Add your income from all sources, and do the same for your partner if you can.

 

3. For the purpose of support arrangements, you might have adjustments to your income.  Some reduce your income, such as union dues or professional fees.  Others might increase the amount, such as capital gains.  Here is a partial list of those adjustments:

  • Sales, travel, or motor vehicle expenses

  • Union or professional dues

  • Capital gains and capital losses

  • Dividends from taxable Canadian corporations

  • Business investment losses

  • Carrying charges

  • Capital cost allowance on real property

Build Your Plan

Building the plan that will work best for you and your family does take some time. The following Q and A will help.  You can save, print or email it to yourself.  The information will not be saved. 

(CURRENTLY UNDER CONSTRUCTION)