Dear David,
I would like to ask you some questions about calculating income from
the U.S. salary according to Canadian standards for the child support
purpose.
My ex is working in the States (PA) and he earned US $54,000 in 2003 .
Despite the fact that his wages are going up every year, for the last
three years the US - CA $ exchange rate is fluctuating and as we know
it's recently is very low. If we use the average exchange rate for
this year, his income would be smaller than that in the last year even
his economic situation would be better.
Lately I've come across few cases where spouses US income was
calculating according to the Canadian standards: using the exchange
rate and the tax bracket in Canada for his income. My ex is enjoying
low as 7% taxes from his income filed jointly with his not working
wife.
For three years I did not ask to increase his child support for two
children and found now that he was misleading me with his taxable
income (only) and he was hiding his gross income.
Question: Would you suggest some fair calculation of his income for
the child support purpose? Can I consider exchange rate fluctuation as
well?
Thank you so much.
====================================
david ingram replies:
You are entitled to ask for a change in support when the parent of
your children has a change in circumatances. Remember that it goes
both ways. If the other parent's income goes down, the other parent
can ask for a reduction as well.
Exchange is a very difficult thing to cdalculate. For instance, if a
person is earning $100,000 in Vancouver, they need about $130,000 US
to stay even to a Vancouver life style, even with the lower tax rate.
Calgary to Denver requires $115,000 to equal $100,000 in Calgary.
Gross income is only useable if there are no work deductions against
it.
For instance, if a person is part of a mandatory pension plan and / or
a member of a union or a profession, it is not unusual for there to be
$5,000 to 10,000 mandatory deductions that he or she has no control
over.
I advise you to be careful. Use honey to get more, not the courts if
you can manage.
Throwing guidelines around can backfire when you have two countries
involved. He may try for a different order in his jurisdiction.
david ingram
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