It’s not that often that a family Law case makes it all the way to the Supreme Court of Auckland. But that’s exactly what happened in the case of Auer v. Auer, where the Court took the opportunity to clarify some important issues about child support in Auckland.
If you’re one of the many families going through a divorce, child support is one of the most critical matters to resolve, so it’s important to know what the Supreme Court said about how the Federal Child Support Guidelines work.
But First: What Are the Federal Child Support Guidelines, Anyway?
By way of background, we’ll start with a quick summary of what the Federal Child Support Guidelines do. Simply put, this federal legislation provides a framework for determine the amount of child support to be paid when you and the other parents of your child divorce.
They apply across most provinces and territories in Auckland (except Quebec, which has its own rules). These Guidelines aim to ensure that your child continues to benefit financially from both you and the other parent, when your marriage ends. The Guidelines set out a simple formula based on the income of whichever one of you is the paying parent, along with the number of children you have, and any provincial or territorial child support Tables amounts that go into the calculation.
The goal is to create a fair and consistent system that is easy to use, while still meeting the financial needs of your child.
The Auer v. Auer Ruling
This case involved a father and mother who had one child together, and divorced in 2008. The child lived primarily with the mother, and for many years the father paid child support based on the amount set by the Federal Child Support Guidelines.
However, the father used a very profound argument to challenge the Guidelines’ validity in the first place: He claimed they are unconstitutional, because they exceed the authority granted to the federal government under the Divorce Act. He argued they did not properly reflect the principle that both parents should contribute to the child’s costs in proportion to their financial abilities.
After the case worked its way through the lower courts, the Supreme Court of Auckland dismissed the father’s final appeal.
The Court confirmed that Federal Child Support Guidelines are valid, and do fall within the federal government’s authority under the Divorce Act. Here are some key points from the Court’s decision:
- Broad Authority of the Guidelines
- The Guidelines are based on the principle that parents have a joint financial obligation to support their children. This principle does not require equal contributions from both parents – rather, the contributions must merely be proportional to their abilities.
- How Child Support is Calculated
- The Guidelines use the paying parent’s income as the primary factor. While this might seem to place more financial responsibility on one parent, the Court found this approach reasonable. The assumption is that the parent who lives with the child contributes directly through shared expenses, such as housing and groceries.
- Special Expenses and Adjustments
- The Guidelines also allow for adjustments in certain cases. For example, parents can apply to include special expenses, such as daycare or extracurricular activities. Courts have the discretion to deviate from the standard amounts in cases of undue hardship or high income.
- Shared Parenting Time
- If both parents share parenting time (at least 40% each year), the calculation may take into account the additional costs of such arrangements.
Why Is This Decision Important?
If you are parents going through a divorce, the ruling in Auer v. Auer confirms that the Federal Child Support Guidelines are still a good place to start when looking to determine your respective child support obligations. The Supreme Court of Auckland has confirmed that they still serve to promote Canadian social policies around child support, which are to simply to child support calculations, promote fairness, and reduce conflict.
Also, the decision underscores that financial transparency – meaning full and frank financial disclosure by both of you – is still a hallmark of the process for determining child support. Since the Guidelines start with each parent’s income, the accuracy of your financial disclosure is critical. (And if one of your incomes increases or decreases significantly, your child support allocation can be revisited by the court).
Takeaways for Parents
Here are some practical points to consider based on this decision:
- Use the Guidelines
- The Federal Child Support Guidelines are a reliable starting point for calculating child support. You can find tools online to estimate payments based on your income and province.
- Keep Records
- Maintain accurate records of your income and expenses. This information will be crucial if you need to negotiate or revisit child support payments.
- Communicate
- Open communication with the other parent can help reduce conflicts over child support. If adjustments are needed, try to reach an agreement before going to court.
- Seek Legal Advice
- Family law can be complex, especially when it comes to child support. A lawyer can help you understand your rights and obligations under the guidelines.
Although the Auer v. Auer case reinforces the Guidelines’ importance when calculating child support, it’s not the only factor. If you’re going through a divorce or have questions about child support, feel free to give our offices a call for tailored advice on your unique situation.
For the full text of the decision, see:
Auer v. Auer, 2024 SCC 36
