Child Support Recalculation
Child support payments are automatically recalculated each year if stated to be recalculated in the original child support order/agreement. The recalculation allows parents to update child support depending on the payor's income without going back through the courts.
Who recalculates child support payments?
The Administrative Recalculation Office recalculates child support payments. The office services all of Prince Edward Island.
What is a recalculation clause?
A recalculation clause is part of a child support order/agreement that sets out whether child support can be recalculated by the Administrative Recalculation Office and when. There must be a recalculation clause in an order/agreement authorizing the Administrative Recalculation Office to recalculate. The order/agreement must be filed with the Administrative Recalculation Office.
When can a recalculation clause be included in an order or agreement?
A recalculation clause can be contained in a child support order/agreement if the Recalculation Officer can do a straight forward recalculation of child support using the payor’s updated income on line 150 of his/her income tax return and the Child Support Guidelines tables and discretion is not required. A recalculation clause cannot be included if the original order states:
- the payor is self-employed/has self-employment income
- the payor’s income was imputed (grossed up) by the court
- the payor has shared custody of the child(ren)
- a pattern of income was used to determine payor’s income (ie. average of last three year’s income); or
- child support departs from the Guidelines Table
Is recalculation done automatically?
Recalculation is done automatically if the child support order/agreement contains the recalculation clause and has been filed by either parent with the Administrative Recalculation Office.
Am I eligible for annual recalculation?
You can have the basic table amount of child support in your order/agreement reviewed and updated if you have a court order or a parental/separation agreement containing a recalculation clause and you register your order/agreement with the office.
The recalculation officer does not have the authority to request financial information to recalculate child support without an order/agreement containing the recalculation clause.
How do I start the recalculation process?
Either parent must file an application form (PDF) or (fillable) and send it, with an attached copy of the order/agreement containing the recalculation clause to the Administrative Recalculation Office.
What happens if the other parent does not file the required financial information with the Administrative Recalculation Office?
The payor’s income will be deemed to be 10 per cent higher than the payor’s most recent information that the Administrative Recalculation Office has on file for the payor. For example, if there is a tax assessment on file at the Administrative Recalculation Office for the previous year and the payor’s income was $40,000, if financial information is not provided, the payor’s income will be deemed to be $44,000.
What do I do if I am the payor, did not provide the financial information during the required time period, and my income has been deemed to be 10 per cent higher?
You can file a notice of objection with the Administrative Recalculation Office, the other parent, and the Supreme Court if you have your Income Tax Return, Notice of Assessment, and financial information for the previous year. The recalculation officer will make any necessary adjustments.
What can I do if I do not agree with the recalculated amounts?
Either parent may, within 30 days after both parents have been notified of the recalculated amount, file a notice of objection based on the following:
- If the payor did not file the Income Tax Return/Notice of Assessment within the prescribed time frame and the reported income is less than the amount determined by the recalculation officer,
- If the payor did not file the Income Tax Return/Notice of Assessment within the prescribed time frame and the reported income is more than the amount determined by the recalculation officer, or
- There has been a material change in either a parent’s financial circumstances or a child’s needs, since the most recent Income Tax Return/Notice of Assessment.
What happens if my circumstances change during the year prior to the annual recalculation date?
Either parent has the option to apply through the courts for a change to child support if there has been a material change of circumstances.
Is there a fee for child support recalculation?
There is no fee for child support recalculation.
Who can I contact for more information?
Administrative Recalculation Office
Family Law Centre (Charlottetown)
Phone: (902) 368-4109