MacPhee v. Ryan

MacPhee v. Ryan

Where a shareholder practitioner's personal tax return does not fairly reflect all money available for child support, the court may, under s.18 and having regard to ss.16-19, attribute adjusted corporate pre-tax income to determine annual income. Applying that authority and reducing unreasonable corporate expenses, the court fixed Dr. Ryan’s annual income for child support at $200,000, set Table support at $1,491/month effective October 1, 2000, apportioned Section 7 post-secondary costs (80% Dr. Ryan/20% mother) with specified sums for St. F.X. and U.C.C.B., and awarded a $10,000 retroactive payment.

Citation
2002 NSSF 53
Parties
Applicant (mother): Cynthia MacPhee; Respondent (father): Dr. Michael Ryan
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
10 July 2002
Procedural Posture
Child Support Variation (family Division) / Judgment/decision
Outcome
Application to vary child support granted in part.
Legal Topics
Variation of Child Support, Post Secondary Education Expenses (section 7), Imputation/attribution of Corporate Income, Retroactive Variation of Support, Reasonableness of Corporate Expense Deductions
Source Language
English
Family Law Child Support Divorce Act Tax and Corporate Income Attribution Variation of Child Support Post Secondary Education Expenses (section 7) Imputation/attribution of Corporate Income Retroactive Variation of Support +1 more

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Parties

Cynthia MacPhee

Applicant (mother)

Dr. Michael Ryan

Respondent (father)

Procedural Posture

Child Support Variation (family Division) / Judgment/decision

Legal Issues

  1. 1 Whether Joshua is a child of the marriage entitled to support
  2. 2 Whether the existing corollary relief order barred variation
  3. 3 What annual income to attribute to Dr. Ryan for Guidelines purposes and whether to include corporate pre-tax income

Ratio Decidendi

Where a shareholder practitioner's personal tax return does not fairly reflect all money available for child support, the court may, under s.18 and having regard to ss.16-19, attribute adjusted corporate pre-tax income to determine annual income. Applying that authority and reducing unreasonable corporate expenses, the court fixed Dr. Ryan’s annual income for child support at $200,000, set Table support at $1,491/month effective October 1, 2000, apportioned Section 7 post-secondary costs (80% Dr. Ryan/20% mother) with specified sums for St. F.X. and U.C.C.B., and awarded a $10,000 retroactive payment.

Court Disposition

Application to vary child support granted in part.

Orders

  • Dr. Michael Ryan’s annual income for child support purposes fixed at $200,000 and Table support for one child set at $1,491.00 per month effective October 1, 2000 (outstanding accumulated support due and payable by September 1, 2002).
  • Retroactive child maintenance of $10,000.00 payable by September 1, 2002.