May 20, 2023 | Child Support

Family Law Cases and Business in Cash

In family law cases, especially when calculating support payments, for example after a divorce, both parties’ incomes need to be disclosed in order to proceed with the calculation of the payments. Therefore, it is extremely important that the income reported is an accurate representation of what the party actually earns.

Child support covers children’s everyday needs such as food, housing, clothing, and transportation. In Quebec, it is determined by the Quebec model for the determination of child support payments. When one parent lives out of Quebec the Federal Child Support Guidelines apply.

The parent’s income is a very important factor in the determination of child support. Other factors are the number of children and the exact parenting time exercised by each parent. Furthermore, the parents must exchange information about their respective income once a year in order to ensure that the support payments are based on the parent’s actual financial situation. If the other parent does business in cash, proving their true income is much more difficult as it isn’t declared in their income taxes.

In Quebec, the Child Support Determination Form must be completed to calculate both parties’ gross income. You are required to disclose your income from all sources of revenue.

Examples of sources of income:

  • Salary
  • Self-employment income
  • Tips
  • Commission 
  • Parental insurance benefits
  • Employment insurance benefits
  • Retirement benefits
  • Support (from a 3rd party)
  • Disability benefits
  • Interests
  • Revenue from rentals 
  • Dividends
  • Revenue from investments

You can also determine the amount that you can deduct from your annual gross income when calculating child support. The three authorized deductions in Quebec are the basic deduction, union dues, and professional fees. The basic deduction is established by the Quebec government and is reviewed annually as per the Child Support Determination Table.

Evidently, it is extremely important to have an accurate depiction of both parties’ income in family law cases. The Child Support Determination Form clearly states that regardless of the nature of your income, you must disclose it all. Any attempt to conceal a portion of your income is against the law.

If the other party refuses to share their exact yearly income with you, the court can order them to do so. Furthermore, if they are concealing their income, it can be proven based on their education, earning potential, lifestyle, and work experience.

Nonetheless, it is much harder to prove the other party’s income in a family law case when they do their business in cash. It is always recommended to seek the advice of an experienced lawyer to help you with your case.

https://www.quebec.ca/en/family-and-support-for-individuals/separation-divorce/children-responsibility/child-support/about-child-support

https://www.quebec.ca/en/family-and-support-for-individuals/separation-divorce/separation#:~:text=Following%20legal%20separation%20(separation%20from,partitioned%20equally%20between%20the%20spouses.

https://www.revenuquebec.ca/en/support-payments/

https://www.justice.gouv.qc.ca/en/programmes-et-services/services/child-support-payments-calculation-tool/

https://familylawyer.zone/how-child-support-is-calculated/#:~:text=To%20calculate%20each%20parents’%20disposable,%3A%20%2445%2C000%20%E2%80%93%20%2411%2C680%20%3D%20%2433%2C320.

https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/tax-alert/about-underground-economy.html

https://laws-lois.justice.gc.ca/eng/regulations/sor-97-175/index.html