Averaging Income for Support in Ontario: When Will Courts Use It?

When determining child or spousal support, one of the first questions is what income should be used. In most cases, the starting point is the spouse's most recent annual income.

Under the Federal Child Support Guidelines, income is generally determined using the sources of income reported on a person's tax return. The law does not automatically require the court to average income over several years.

When Can the Court Use a Three Year Average?

Section 17(1) of the Federal Child Support Guidelines allows the court to consider a spouse's income over the last three years if using the most recent annual income would not result in the fairest determination.

This may apply where there is:

1. A pattern of income;

2. A fluctuation in income; or

3.  A non recurring amount received during those years.

4. 
   

In those circumstances, the court may determine an income amount that is fair and reasonable.

Is Averaging Income Automatic?

No. Ontario courts have made clear that income averaging is not the default approach. The Guidelines generally rely on the most recent income to predict the near future.

The court has discretion to average income where appropriate, but it is not required to do so in every case.

Key Takeaway

For child and spousal support, the most recent annual income is usually the starting point. A three year average may be used where income fluctuates, where there is a clear pattern, or where a spouse received a non recurring amount. However, averaging is discretionary and will only be used where it leads to a fair and reasonable result.

Contact TMB Law today to schedule a confidential consultation and learn how we can help with income determination, child support, and spousal support issues.