Child support to be deducted from excess earnings?

April 8th, 2010 by Questions

My husband and I are separated. He is declaring bankruptcy for a second time. He is paying me $500/mo child support (plus 1/2 of any major child related expenses). Is this an allowable deduction over and above what he is allowed to keep every month? For example if the statutory amount he can keep per month is $2000 and he makes $3000, would he still keep the $2000, pay me the child support, with only the remaining ($500) being subject to excess earning calculation?

Posted from: Manitoba


One Response to “Child support to be deducted from excess earnings?”

, A licensed trustee said:

In order for your ex to deduct the support and other child related expenses he may be paying to you, there needs to be a bona fide support agreement in place. That means something reviewed by either a lawyer, or Ordered by a Court. As long as the support payments are in line with the provincial standards for support (most provinces have a “grid” that tells you how much you are required to pay based on income and the number fo children) he should be all right to deduct the support. The other child related expenses may not be deductible, depending on what they are.

So, if you haven’t had a lawyer or the Court go over our suypport agreement you’ll need to have that done. The reason is simple enough – there are people that either fake a separation or cut a deal with the exs to pay extra support to reduce the cost of filing for bankruptcy. Having a lawyer sign-off, or a Court Ordr the payments gives the support agreement more credibility.

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