Help Center Category: Resources

Court Filing Fees

There are fixed court fees payable to the Ontario Superior Court of Justice when you file for divorce. These fees are set by the government and are updated periodically. As of the time of writing, the filing fee for a divorce application is several hundred dollars. Additional fees are payable for certain motions, requests for orders, and obtaining a Certificate of Divorce. Always confirm current fee amounts directly with the court.

Lawyer’s Fees

Legal fees are typically the largest component of divorce costs. Lawyers in Ontario generally charge by the hour, though some offer fixed-fee or limited-scope retainer arrangements for simpler matters. Hourly rates vary widely depending on the lawyer’s experience and location. For straightforward uncontested divorces, legal costs are significantly lower than for complex contested proceedings.

Factors That Affect the Total Cost

• Whether the divorce is uncontested (lower cost) or contested (significantly higher).
• The complexity of property issues, particularly if businesses or pensions are involved.
• Whether spousal support is in dispute.
• Whether parenting arrangements are contested.
• How much cooperation exists between the parties.
• Whether professional valuators, actuaries, or other experts are required.
• The length of the court proceedings if litigation is required.

Uncontested Divorce Costs

An uncontested divorce where the parties have already resolved all issues in a separation agreement tends to be the most cost-effective. Legal fees for preparing and reviewing a separation agreement and completing the divorce application can vary depending on complexity, but are generally far lower than the costs of litigation.

Contested Divorce Costs

A contested divorce that proceeds to trial can be extremely expensive. Legal fees, expert witness costs, and court fees can add up quickly. Parties in a contested divorce sometimes spend tens of thousands of dollars or more. This is one reason why settlement — even at an advanced stage of proceedings — is almost always financially preferable to trial.

Managing Divorce Costs

• Be organized and responsive — minimize time your lawyer spends on administration.
• Consider mediation or collaborative law to resolve issues without litigation.
• Ask about fixed-fee services for straightforward matters.
• Explore legal aid if you qualify financially.
• Consider limited-scope retainers — hire a lawyer for only specific parts of the case.

How the Guidelines Work

The Child Support Guidelines contain tables — one for each province and territory — that specify the monthly child support amount based on the paying parent’s annual income and the number of children. The Ontario table amount is determined by looking up the paying parent’s income in the table and finding the corresponding amount for the number of children.

What Income Is Used?

The paying parent’s ‘Guidelines income’ is typically their total annual income from line 15000 of their federal income tax return. Adjustments may be needed for various reasons, such as self-employment income, union dues, RRSP contributions, or non-recurring income. Courts can also impute income where a parent is voluntarily underemployed or unemployed.

Table Amount Examples

As a general illustration (amounts are approximate and change over time), a parent earning $60,000 per year in Ontario with one child would pay a base monthly amount according to the Guidelines table. A parent earning $100,000 with two children would pay a higher amount. Always use the current official tables, available through the federal Department of Justice.

Section 7 Special and Extraordinary Expenses

In addition to the base table amount, parents may be required to share certain special expenses under Section 7 of the Guidelines. These include childcare costs, medical and dental expenses not covered by insurance, post-secondary education costs, and extraordinary extracurricular activity fees. These expenses are typically divided between the parents in proportion to their incomes.

Shared Parenting Arrangements

Where each parent has the children at least 40% of the time (a shared custody arrangement), the calculation of child support is more complex. Courts consider the Guidelines amounts that would be payable by each parent to the other, the increased costs of a shared arrangement, and the conditions, means, needs, and other circumstances of each spouse and the children.

Split Custody

In a split custody situation (where each parent has the primary care of at least one child), the Guidelines provide that each parent’s support obligation is calculated separately, and the lower amount is subtracted from the higher to determine the net amount payable.

Updating Child Support

Child support is not set in stone. Both parents have an ongoing obligation to disclose annual income changes. Either parent can request a review of child support when there has been a material change in circumstances, such as a significant change in income. Keeping child support amounts current avoids accumulation of arrears or overpayment.

What Is the Canada Child Benefit?

The Canada Child Benefit (CCB) is a tax-free monthly payment from the federal government to help families with the cost of raising children under 18 years of age. The amount is determined by the number of eligible children, their ages, and the family’s net income as reported on their annual tax returns.

Who Receives the CCB After Separation?

The CCB is paid to the parent who is primarily responsible for the care and upbringing of the child. This is generally the parent with whom the child primarily resides. Where parenting time is shared equally (each parent has the child at least 40% of the time), the CRA may split the benefit, paying each parent for alternating months.

Notifying the CRA of Your Separation

After separation, both parents should notify the Canada Revenue Agency (CRA) of their new marital status and living arrangements. Failing to update the CRA can result in overpayments that must be repaid, or underpayments that leave money on the table. This can be done through My Account on the CRA website.

How the CCB Interacts With Child Support

The CCB is a separate government benefit and does not substitute for child support. Child support under the Guidelines is based on the paying parent’s income and the number of children — it does not reduce because the other parent receives CCB. However, the CCB may affect the recipient parent’s ability to demonstrate financial need if spousal support is also at issue.

Other Child-Related Benefits

• Ontario Child Benefit: a provincial supplement for lower-income families with children.
• GST/HST Credit: payments for lower-income individuals and families, which may be available to a single parent.
• Disability Tax Credit and Child Disability Benefit: available where a child has a significant physical or mental disability.
• Eligible Dependant Credit: a tax credit available to a single parent who supports an eligible child.

Tax Implications of Separation for Parents

Separation has broader tax implications beyond child benefits. Child support payments are neither deductible for the payor nor taxable for the recipient under current Canadian tax law. Spousal support, however, is generally deductible for the payor and taxable for the recipient if paid pursuant to a written agreement or court order. Consulting a tax professional after separation is advisable.

Option 1: One Spouse Buys Out the Other

One common outcome is that one spouse keeps the home and buys out the other’s interest. This typically involves the staying spouse refinancing the existing mortgage to remove the other spouse from the mortgage and title, and paying an amount to the leaving spouse reflecting their share of the equity.

Qualifying for a New Mortgage

To refinance and remove the other spouse from the mortgage, the staying spouse must qualify for the mortgage on their own income. Lenders will assess income, credit, and other financial factors. If the staying spouse cannot qualify, a buyout may not be possible without additional financing arrangements.

Calculating the Buyout Amount

The buyout amount is based on the equity in the home — the current market value less the outstanding mortgage balance and any other charges against the property. An independent appraisal is recommended to establish current market value. The equity is then divided in accordance with the parties’ agreement or the equalization calculation.

Option 2: Sell the Home and Divide the Proceeds

If neither spouse can afford to buy out the other, or if both parties prefer a clean break, selling the home is often the most practical solution. The net proceeds (after repaying the mortgage and deducting selling costs) are then divided in accordance with the parties’ agreement.

Option 3: Continue to Co-Own the Home Temporarily

In some cases, particularly where children are involved, the parties agree to continue to own the home jointly for a period of time — for example, until the youngest child completes high school. This can provide stability for children but requires both parties to cooperate on ongoing mortgage payments, maintenance, and a future sale.

The Impact of Separation on the Mortgage

Separation does not automatically change the mortgage. If both spouses are on the mortgage, both remain liable for the payments until the mortgage is refinanced or the property is sold. If the spouse remaining in the home fails to make mortgage payments, the leaving spouse’s credit will be affected. It is important to address the mortgage promptly.

Mortgage Prepayment Penalties

Breaking a mortgage as part of a separation may trigger prepayment penalties, particularly for fixed-rate mortgages. These penalties can be significant. Before proceeding, confirm the penalty amount with your lender. In some cases, it may be financially preferable to assume the existing mortgage rather than refinance.

Step 1: Identify the Valuation Date

The valuation date is typically the date of separation — the day the spouses separated with no reasonable prospect of resuming cohabitation. All property values and debts are assessed as of this date for the purposes of the NFP calculation.

Step 2: List All Assets as of the Valuation Date

Each spouse prepares a complete list of all property they owned on the valuation date, including real estate, bank accounts, investments (RRSPs, TFSAs, non-registered), pensions, vehicles, businesses, life insurance cash values, and all other valuable assets.

Step 3: Establish Fair Market Values

Each asset must be valued at its fair market value on the valuation date. Real estate values may require an appraisal, pension values typically require an actuarial calculation, business interests may require a business valuator, and investment accounts can be established from account statements.

Step 4: List All Debts and Liabilities as of the Valuation Date

All debts owed by each spouse on the valuation date are deducted from their total asset value. This includes mortgages, lines of credit, credit card balances, student loans, income tax liabilities, and all other enforceable obligations.

Step 5: Apply Exclusions and Deductions

• Deduct the value of property owned on the date of marriage (not including the matrimonial home).
• Deduct the value of gifts or inheritances received during the marriage (not used for the matrimonial home).
• Deduct personal injury damages and certain other excluded property.
• Note: the matrimonial home receives no pre-marriage deduction.

Step 6: Calculate Each Spouse’s Net Family Property

Net Family Property = Total assets at separation – Total debts at separation – Deductions for pre-marriage property and exclusions. If the result is negative, it is treated as zero (a spouse cannot have a negative NFP).

Step 7: Calculate the Equalization Payment

Equalization Payment = (Spouse A’s NFP – Spouse B’s NFP) ÷ 2. The spouse with the higher NFP pays half the difference to the other spouse. For example: Spouse A has NFP of $500,000; Spouse B has NFP of $100,000. Difference = $400,000. Equalization payment = $200,000 payable by Spouse A to Spouse B.

Important Caveats

This is a simplified overview of a complex legal calculation. Valuation disputes, characterization of assets as excluded or included, and the treatment of pre-marriage assets can all affect the outcome significantly. Professional assistance from a family law lawyer and appropriate valuation experts is strongly recommended.