Canada Judgment

Supreme Court of British Columbia

McClaughry v. McClaughry

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Source document

01

Holding and result

The court fixed Guideline incomes for each party, declined to order interim spousal support because the defendant's payments toward the household and his debts made an award unjustified, calculated reduced child support under the simple setoff method and further reduced it because the defendant pays 100% of the matrimonial mortgage, awarded costs to the defendant under Appendix B, and recognized the existing solicitor's lien; outstanding issues including division of assets were adjourned to be addressed later with consideration of the defendant's disproportionate ongoing contributions.

Court disposition

Divorce granted subject to s.12 of the Divorce Act; interim care plan maintained; no interim spousal support ordered; child support fixed at $350 per month (reduced from simple setoff) while the defendant pays 100% of the mortgage; parties to share special expenses per Guideline incomes; costs awarded to defendant in the amount of $4,950; solicitor's lien recognized; balance of issues adjourned.

Orders

  • Divorce granted subject to s.12 of the Divorce Act.
  • Interim consent care plan regarding the children to remain in place pending further order.
  • No interim spousal support ordered.
  • Child support by the defendant fixed at $350 per month, commencing August 1, 2008, while he continues to pay 100% of the mortgage, payable on the first of each month until further order.
  • Parties to pay children's special expenses as defined in the Child Support Guidelines according to their fixed Guideline incomes.
  • Costs awarded to the defendant in the amount of $4,950 (45 units at $110 per unit, Scale B), payable to the defendant when the division of assets is determined by court order or settlement.
  • A copy of these reasons to be delivered to Mr. Jonas Dubas in respect of the solicitor's lien.
  • Balance of remaining issues (including final division of assets and any spousal support claim) adjourned; defendant may reset the matter via his counterclaim.

02

Material facts

Parties

Maureen Wing Che McClaughry

Plaintiff

Lester Andrew McClaughry

Defendant

Amounts and remedies

  • Plaintiff Annual Income (approx.): CAD 20,690
  • Plaintiff Guideline Income Fixed by Court: CAD 20,540.35
  • Defendant Guideline Income Fixed by Court: CAD 56,000
  • Defendant Estimated Guideline Income (party Estimate): CAD 52,046
  • Monthly Mortgage Payment (paid by Defendant): CAD 946
  • Child Support If Children Lived Primarily With Mother (monthly): CAD 848
  • Child Support by Simple Setoff for Shared Custody (monthly Before Reduction): CAD 522
  • Child Support Ordered (monthly, Reduced): CAD 350
  • Costs Awarded to Defendant: CAD 4,950

03

Procedural history

  1. Posture

    Divorce / Family Law (matrimonial Action) / Trial – Reasons for Judgment; Interim Orders Issued; Balance of Issues Adjourned

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff contended she is under‑employed with annual income around $20,690, has a medical limitation requiring surgery, has been unable to find additional work, and argued the defendant could be imputed a higher income based on a high 2004 income and that some of his claimed deductions as a self‑employed contractor should be disallowed.
Respondent
The defendant submitted his appropriate Guideline income is approximately $56,000 based on 2007 and a three‑year average, argued 2004 was an anomaly, maintained his deductions (including travel) are legitimate, highlighted his extensive debts and ongoing payment of the mortgage and utilities, opposed interim spousal support, and sought costs.

05

Court’s reasoning

  1. 01

    Spousal Support Advisory Guidelines

    Use of Spousal Support Advisory Guidelines to assess entitlement and range of spousal support

  2. 02

    Federal Child Support Guidelines (Divorce Act)

    Child Support Guidelines prescribe calculation under the Divorce Act and permit simple setoff for shared custody

  3. 03

    Family law jurisprudence / imputation principles

    Court may impute income where appropriate based on evidence and relevant factors

  4. 04

    Appendix B tariff (Scale B) as applied by trial judge

    Costs assessed by reference to tariff in Appendix B with Scale B unit rate

  5. 05

    Order of Mr. Justice Halfyard granting solicitor's lien (July 18, 2008)

    Solicitor's lien enforceable by court order and notice requirements for adjournment upheld by prior order

06

Ratio, limits and disposition

Ratio decidendi

The court fixed Guideline incomes for each party, declined to order interim spousal support because the defendant's payments toward the household and his debts made an award unjustified, calculated reduced child support under the simple setoff method and further reduced it because the defendant pays 100% of the matrimonial mortgage, awarded costs to the defendant under Appendix B, and recognized the existing solicitor's lien; outstanding issues including division of assets were adjourned to be addressed later with consideration of the defendant's disproportionate ongoing contributions.

Obiter and limits

  • The plaintiff's repeated tardiness and lack of preparation justified the inability to proceed and affected the outcome on interim relief.
  • The defendant's current disproportionate contribution to household costs (preserving plaintiff's share of the home) is inequitable and should be taken into account at final asset division.
  • Because the defendant filed a counterclaim he may reset the trial and pursue remaining issues as the effective moving party.

Court disposition

Divorce granted subject to s.12 of the Divorce Act; interim care plan maintained; no interim spousal support ordered; child support fixed at $350 per month (reduced from simple setoff) while the defendant pays 100% of the mortgage; parties to share special expenses per Guideline incomes; costs awarded to defendant in the amount of $4,950; solicitor's lien recognized; balance of issues adjourned.

  • Divorce granted subject to s.12 of the Divorce Act.
  • Interim consent care plan regarding the children to remain in place pending further order.
  • No interim spousal support ordered.
  • Child support by the defendant fixed at $350 per month, commencing August 1, 2008, while he continues to pay 100% of the mortgage, payable on the first of each month until further order.
  • Parties to pay children's special expenses as defined in the Child Support Guidelines according to their fixed Guideline incomes.
  • Costs awarded to the defendant in the amount of $4,950 (45 units at $110 per unit, Scale B), payable to the defendant when the division of assets is determined by court order or settlement.
  • A copy of these reasons to be delivered to Mr. Jonas Dubas in respect of the solicitor's lien.
  • Balance of remaining issues (including final division of assets and any spousal support claim) adjourned; defendant may reset the matter via his counterclaim.

Source and reliance status

Supreme Court of British Columbia · 24 July 2008

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Judgment text

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Source document

Supreme Court of British Columbia

Judgment· 24 July 2008

2008 BCSC 982

2008 BCSC 982 McClaughry v. McClaughry

IN THE SUPREME COURT OF BRITISH COLUMBIA Citation: McClaughry v. McClaughry, 2008 BCSC 982 Date: 20080724 Docket: Vancouver Registry: E072326 Between: Maureen Wing Che McClaughry Plaintiff And Lester Andrew McClaughry Defendant Before: The Honourable Madam Justice Allan Reasons for Judgment The Plaintiff Appeared on her own behalf The Defendant Appeared on his own behalf Date and Place of Trial: July 21, 22, and 23, 2008 Vancouver, B.C. [1] This matrimonial action came before me on Monday, July 21, 2008 and was set for seven days. The issues include custody, access and guardianship, child and spousal support, and division of assets. Both parties are representing themselves. [2] The parties were married on July 15, 1990 and separated on May 16, 2007. They have two sons: Connor aged 13 and Liam aged 11. The plaintiff, Ms. McClaughry, is 53 years of age and works part-time as a hairdresser, with an annual income of $20,690. The defendant, Mr. McClaughry, is 51 years old and works as an automotive instructor. He estimates his Guideline income as $52,046. [3] In March 2008, the parties entered into a care plan by consent. Since that time, they have shared custody of their sons who spend Sunday, Monday and Tuesday with their mother, transfer on Wednesday, and spend Thursday, Friday and Saturday with their father. The defendant is still entitled to reside in the basement of the

matrimonial home where he spends part of his time when he has the children. He spends part of his time at the home of his girl friend, both with and without the children. [4] I determined on July 22, 2008 that it was impossible to proceed with the trial. Ms. McClaughry was 10 minutes late for trial on July 21; 50 minutes late for the morning session on July 22, and 65 minutes late for the afternoon session, despite being told repeatedly that she must attend on time. She was unprepared and unable to locate or produce documents that would advance her case. By the end of the second day of trial, Ms. McClaughry had not completed her evidence in chief. [5] On July 22, I granted the divorce subject to s. 12 of the Divorce Act. I ordered that the care plan regarding the children remain in place on an interim basis. I advised the parties that I would hear submissions from them on July 23 with respect to the issues of interim spousal and child maintenance. The balance of the issues would be adjourned. I noted that as Mr. McClaughry had filed a counterclaim, he was in a position to reset the matter for trial and, in essence, pursue the matter as the plaintiff. Spousal support [6] Spousal support is determined primarily by the spousal support advisory guidelines, which take into account, the age of the recipient, the length of the marriage, and the incomes of the parties. In this case, I

fix the guideline income of the plaintiff at $20,540.35. The defendant submits that she is under-employed and that a greater income should be imputed to him. The plaintiff responds that she has been unsuccessful in her attempts to find additional employment. She also produced a recent letter from an orthopaedic surgeon to her family doctor indicating that she requires a rotator cuff repair surgery, which would necessitate about a four and one-half month absence from hairdressing. [7] I fix the Guideline income of the defendant at $56,000. That was both his approximate income in 2007 and approximates his average annual income over the past three-year period. The plaintiff notes that Mr. McClaughry earned $90,091 in 2004 and suggests that he could be earning that amount at present. She suggests that a greater income should be imputed to him, both because of that factor and because he should not be entitled to the deductions he claims because he is a self-employed contractor. However, the defendant submits that 2004 was an anomaly where he worked in excess of 50 hours a week because of the absence of other instructors to teach automotive courses. He says that his expenses claimed, such as his travel expenses are legitimate deductions. [8] Applying the relevant factors, the amount of spousal support under the Guidelines would range from $0 to $252. In this case, Mr. McClaughry

continues to pay the monthly mortgage payments of $946 and at least some of the utilities. He has extensive debts, partly because of this litigation and partly because of his continued contribution to the expenses of the household in which the plaintiff and children reside. In those circumstances, I find that he should not be required to pay any interim spousal support. Child Support [9] If Liam and Connor lived primarily with their mother, Mr. McClaughry would be required to pay $848 monthly under the Child Support Guidelines. However, as the parents share custody, the appropriate amount is $522 per month using the "simple setoff" method. I would reduce that amount to $350 as long as Mr. McClaughry continues to pay 100% of the mortgage. The statutory scheme for calculating child support presumes that the mother is paying the expenses of one household and the father is paying the expenses of yet another household. Mr. McClaughry should commence those payments on August 1, 2008 and continue them on the first of every month until further order of this court while Liam and Connor continue to be children of the marriage. [10] Until any further order of the court, the parties should pay for the children's special expenses, as defined in the Child Support Guidelines, according to their Guideline incomes as fixed above. [11] I note that Mr. McClaughry is making a disproportionately

high contribution to the family's expenses each month, even taking into account the fact that he need not pay interim spousal support and pays reduced child support. He is paying the plaintiff's portion of the mortgage which is approximately $500 and other expenses and preserving her share of the home. This inequity should be taken into account subsequently when the family assets are divided. Costs [12] As I indicated, the defendant is entitled to his costs for the three days of trial. Using the tariff in Appendix B, I find he is entitled to 45 units and at $110 a unit at Scale B, I award him costs in the amount of $4,950. They are to be paid to Mr. McClaughry when the division of the parties' assets is determined either by court order or settlement. The Solicitor's Lien [13] On July 18, 2008, Mr. Justice Halfyard granted the application of Mr. Jonas Dubas, former counsel for the plaintiff, a solicitor's lien for fees owing. It was a term of the order that Mr. Dubas return his client's file to her, which he did that day. It was a further term of the order that the parties notify Mr. Dubas of any adjournment of the trial. A copy of these reasons should be delivered to Mr. Dubas. "M.J. Allan J." _________ The Honourable Madam Justice Allan

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Divorce Act (s.12)

Legislation

Legislation referenced in the available case record.

Federal Child Support Guidelines (Divorce Act)

Legislation

Legislation referenced in the available case record.

Spousal Support Advisory Guidelines

Legislation

Legislation referenced in the available case record.

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