Amendment to the Federal Child Support Guidelines Regarding Pension Income Splitting

Frequently Asked Questions

1. What are the Federal Child Support Guidelines?
2. What is meant by "elected split-pension amount" and "pension income splitting"?
3. How were the Guidelines changed?
4. Why were the Guidelines amended?
5. Does this amendment affect me if I pay child support and I transfer part of my pension to my spouse or common-law partner under the pension income splitting program?
6. Do these changes affect me if I am paying child support under provincial or territorial child support guidelines?

• Q. What are the Federal Child Support Guidelines?
  

  The Guidelines are regulations under the Divorce Act. They are a set of rules and tables to be used in determining child support. More information may be found on this website, including in The Federal Child Support Guidelines: Step-by-Step.

• Q. What is meant by "elected split-pension amount" and "pension income splitting"?
  

  Since 2007, the Income Tax Act has allowed pensioners to transfer part of their eligible pension income to their spouse or common-law partner for income tax purposes. The spouse or common-law partner would then claim this elected split-pension amount as income. More detailed information may be found on the Canada Revenue Agency web site.

• Q. How were the Guidelines changed?
  

  As of June 11, 2009, if you claim an elected split-pension amount, the amendment will allow you to deduct that amount from your income when you use the Guidelines to calculate child support.

  Before the amendment was made, the Guidelines required you to include this split-pension amount as income when calculating child support. This is because it is included in total income shown on line 150 of the income tax form.

• Q. Why were the Guidelines amended?
  

  A key principle of the Guidelines is that child support should be based on a parent's ability to pay. A parent's ability to pay is determined mainly by the most up-to-date information on their income.

  For tax purposes, an elected split-pension amount is now included in the income of the person who receives it. However, money does not actually change hands in the pension income splitting process. So receiving an elected split-pension amount does not change a parent's ability to pay child support. Excluding this amount from income when calculating child support keeps the Guidelines consistent with the principle that support payments should be based on a parent's ability to pay.

• Q. Does this amendment affect me if I pay child support and I transfer part of my pension to my spouse or common-law partner under the pension income splitting program?
  

  No. This is because splitting your pension does not affect your total income. The amendment only affects child support payers who receive an elected split-pension amount.

• Q. Do these changes affect me if I am paying child support under provincial or territorial child support guidelines?
  

  You should check with your own province or territory to find out whether similar changes have been made to the provincial/territorial guidelines and if so, when such changes take effect.