The Canada Child Benefit (CCB) has increased as of July 2019 in order to keep up with the current cost of living. This gives parents even more money each month, tax-free, to help them provide for their children. But, what does this mean when it comes to child support? In this blog, family law firm, Lenehan Musgrave LLP, provides the answer to that question.
A Discretionary Matter
When a couple separates, which one of the two parents is entitled to claim the CCB? It is possible to split the benefit between the two parents. However, the decision tends to be taken on a case by case basis. In the case of custody and parenting being granted to only one parent, the matter is fairly simple – that parent is entitled to claim the full CCB. However, it becomes complicated in matters of shared parenting. Then, the answer is both a matter of the extent to which the parents share parenting, as well as the income disparity between the two parents.
The benefit’s main criterion is income. This means that the Canada Revenue Agency will consider the parents’ income when deciding the amount to be allocated. This is the case when the parents are still together and remains so in a separation. Only now, CRA has to determine the CCB amount on the basis of two separate incomes. If it does then split the grant between the two parents, it does so largely at its discretion, and the amount that each parent is eligible to receive is variable.
Three possible scenarios can play out in the event of a separation. Let’s say that we are dealing with a separated couple with a child below the age of six. Let’s also assume that the father earns considerably more than the mother. If the father has primary care of the child, he will receive a lower grant than the mother would if she had primary care. If parenting is split exactly 50/50, however, and the parents apply to split the benefit, they will each receive exactly half of their own entitlement, based on their current household income.
If you want more detailed information on how the CCB affects your child support situation, or are in need of legal advice regarding custody, child support or any other area of family law, contact Lenehan Musgrave LLP, a family law firm in Dartmouth NS.
