Child Support Recalculation
Child support payments are automatically recalculated each year if the support order or agreement states they are to be recalculated by a Recalculation Officer. Administrative recalculation allows parents to update child support depending on the payor's income without have to go back to court.
Who recalculates child support payments?
The Recalculation Officer in the Child Support Services Office recalculates child support payments. The Recalculation Officer 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 Recalculation Officer and when. There must be a recalculation clause in an order or agreement authorizing the Recalculation Officer to recalculate. The order or agreement must be registered with the Recalculation Officer.
When can a recalculation clause be included in an order or agreement?
A recalculation clause can be contained in a child support order or agreement if the Recalculation Officer can do a straight forward recalculation of child support using the payor’s updated income on line 150 of their income tax return and the Federal Child Support Guidelines tables and discretion is not required. A recalculation clause cannot be included if the original order states:
- the payor has self-employment income
- the payor’s income was imputed (grossed up) by the court
- the parties have shared parenting time of the child(ren)
- a pattern of income was used to determine payor’s income (e.g. average of last three year’s income); or
- child support departs from the Federal Child Support Guidelines Tables
Is recalculation done automatically?
Recalculation is done automatically on a yearly basis if the child support order or agreement contains the recalculation clause and has been registered by either parent with the Recalculation Officer.
Am I eligible for annual recalculation?
You can have the basic table amount of child support in your order or agreement reviewed and updated yearly if you have a court order or agreement containing a recalculation clause and you register your order or agreement with the Recalculation Officer.
How do I start the recalculation process?
What happens if the parent paying support does not file the required financial information with the Recalculation Officer?
The payor’s income will be deemed to be 10 per cent higher than the payor’s most recent information that the Recalculation Officer has on file for the payor. For example, if there is a tax assessment on file with the Recalculation Officer 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 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 being 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 required time frame and the payor's 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. Child Support Guidelines Officers can assist parents who don’t have a lawyer to apply to change their child support order or agreement – you can contact a Child Support Guidelines Officer at (902) 368-6220.
Is there a fee for child support recalculation?
There is no fee for child support recalculation.
Who can I contact for more information?
You can contact the Recalculation Officer for more information:
Child Support Services Office
Family Law Centre (Charlottetown)
Phone: (902) 368-4109