M.M.A. v. S.M.A.R.

M.M.A. v. S.M.A.R.

On interim applications the court used the most accurate available financial measure rather than speculative imputation of corporate pre-tax income to a 50/50 shareholder who cannot unilaterally withdraw funds. The respondent's 2022 net draws ($498,049) grossed up for tax ($985,119) plus a limited tax‑grossed personal benefit attribution for travel/meal/entertainment ($97,196) yields guideline income $1,082,315 for 2022. Claimant's interim income set at $10,000. On that basis child support was fixed at $13,160 per month and mid-range spousal support at $20,598 per month. Half of M. Inc.'s pre-tax income was not imputed because the respondent lacked unilateral entitlement and the company...

Citation
2024 BCSC 552
Parties
Claimant: M.M.A.; Respondent: S.M.A.R.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
5 April 2024
Procedural Posture
Family Law (interim Child and Spousal Support) / Interim Applications (in Chambers) Pre Trial; Five Day Trial Scheduled June 24, 2024
Outcome
Applications granted in part and denied in part: parenting amendment granted by consent; interim child support set at $13,160/month; interim spousal support set at $20,598/month; children's special/extraordinary expenses allocated 76.5% respondent / 23.5% claimant; fine under FLA s.213(2) refused; parties to bear...
Legal Topics
Interim Support Orders, Imputation of Corporate Pre Tax Income Under Guidelines S.18, Determination of Guideline Income Under Federal Child Support Guidelines, Spousal Support Advisory Guidelines Application, Special or Extraordinary Expenses for Children, FLA S.213 Sanctions/fines, Expert Evidence and Valuation Reports
Source Language
English
Family Law Child Support Spousal Support Corporate Law Shareholder Income Attribution Procedural Law Interim Relief Interim Support Orders Imputation of Corporate Pre Tax Income Under Guidelines S.18 Determination of Guideline Income Under Federal Child Support Guidelines +4 more

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Parties

M.M.A.

Claimant

S.M.A.R.

Respondent

Procedural Posture

Family Law (interim Child and Spousal Support) / Interim Applications (in Chambers) Pre Trial; Five Day Trial Scheduled June 24, 2024

Legal Issues

  1. 1 Whether s.18 of the Federal Child Support Guidelines permits imputing M. Inc.'s pre-tax income to the respondent
  2. 2 What is the respondent's appropriate guideline income for interim support (child and spousal)
  3. 3 Whether respondent can unilaterally withdraw funds from M. Inc.

Ratio Decidendi

On interim applications the court used the most accurate available financial measure rather than speculative imputation of corporate pre-tax income to a 50/50 shareholder who cannot unilaterally withdraw funds. The respondent's 2022 net draws ($498,049) grossed up for tax ($985,119) plus a limited tax‑grossed personal benefit attribution for travel/meal/entertainment ($97,196) yields guideline income $1,082,315 for 2022. Claimant's interim income set at $10,000. On that basis child support was fixed at $13,160 per month and mid-range spousal support at $20,598 per month. Half of M. Inc.'s pre-tax income was not imputed because the respondent lacked unilateral entitlement and the company...

Court Disposition

Applications granted in part and denied in part: parenting amendment granted by consent; interim child support set at $13,160/month; interim spousal support set at $20,598/month; children's special/extraordinary expenses allocated 76.5% respondent / 23.5% claimant; fine under FLA s.213(2) refused; parties to bear...

Orders

  • Parenting schedule amended as agreed by the parties and set out in claimant's application response (Part 1, para.1)
  • Respondent to pay child support $13,160 per month commencing April 2024; payment for April 2024 to be made forthwith and thereafter on the first day of each month; interim support orders variable upon production of M. Inc.'s 2024 financial statements or respondent's 2023 personal tax return/2023 draws