L.M. v. S.M.

L.M. v. S.M.

The judge accepted most Schedule III business deductions as reasonable but found specific deductions insufficiently substantiated or inappropriate for Guidelines purposes (capital cost allowance not proven, apparent double counting of 'nets and traps', and an unsupported crab partner's share). Coupled with admission of cash sales and lifestyle evidence, the court added back quantified amounts ($27,661 CCA; $16,587 double-counted nets/traps; $15,500 (25%) of crab partner share) and imputed $35,000 for undeclared income, producing an annual imputed income of $140,000 for support purposes. The court ordered retroactive adjustment of child and spousal support to January 1, 2024 and...

Citation
2025 BCSC 402
Parties
Claimant: L.M. also known as L.P.; Respondent: S.M.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
7 March 2025
Procedural Posture
Family Law Variation Application Re Child and Spousal Support / Application to Vary Post Trial Orders (income Review)
Outcome
Application granted in part: income imputed at $140,000 per annum for child and spousal support purposes; retroactive adjustment to January 1, 2024; prospective support based on $140,000; ancillary disclosure and administrative orders; fines for parenting-order non-compliance adjourned; costs each party to bear...
Legal Topics
Income Imputation Under Federal Child Support Guidelines, Schedule III Deductions, Unreasonable Deductions (s.19(1)(g)), Undeclared/cash Income and Lifestyle Evidence, Parenting Time Enforcement, Retroactive Support Adjustments
Source Language
English
Family Law Child Support Spousal Support Tax Law Civil Procedure Income Imputation Under Federal Child Support Guidelines Schedule III Deductions Unreasonable Deductions (s.19(1)(g)) +3 more

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Parties

L.M. also known as L.P.

Claimant

S.M.

Respondent

Procedural Posture

Family Law Variation Application Re Child and Spousal Support / Application to Vary Post Trial Orders (income Review)

Legal Issues

  1. 1 Whether the payor's reported Line 15000 income accurately reflects available income for support purposes
  2. 2 Whether deductions claimed by the payor are unreasonable under s.19(1)(g) and should be added back for Guidelines purposes
  3. 3 Whether lifestyle and admitted cash sales justify imputing undeclared income

Ratio Decidendi

The judge accepted most Schedule III business deductions as reasonable but found specific deductions insufficiently substantiated or inappropriate for Guidelines purposes (capital cost allowance not proven, apparent double counting of 'nets and traps', and an unsupported crab partner's share). Coupled with admission of cash sales and lifestyle evidence, the court added back quantified amounts ($27,661 CCA; $16,587 double-counted nets/traps; $15,500 (25%) of crab partner share) and imputed $35,000 for undeclared income, producing an annual imputed income of $140,000 for support purposes. The court ordered retroactive adjustment of child and spousal support to January 1, 2024 and...

Court Disposition

Application granted in part: income imputed at $140,000 per annum for child and spousal support purposes; retroactive adjustment to January 1, 2024; prospective support based on $140,000; ancillary disclosure and administrative orders; fines for parenting-order non-compliance adjourned; costs each party to bear...

Orders

  • Impute S.M.'s annual income at $140,000 for support purposes effective January 1, 2024 (retroactive adjustment to child and spousal support)
  • Support payments going forward to be calculated on imputed income of $140,000