Can My Spouse Quit Their Job to Reduce Child Support in Ontario?
Child Support in Ontario
Child support ensures that both parents contribute financially to their children’s needs after separation or divorce. Child support is governed by the Divorce Act, R.S.C. 1985, c. 3 (2nd Supp.) for married parents and the Family Law Act, R.S.O. 1990, c. F.3 for unmarried parents. Both regimes produce the same support amount.
In Ontario, the base table amount of child support is set by the Federal Child Support Guidelines using just two factors: the payor parent’s gross annual income and the number of children. The other parent’s income only becomes relevant for section 7 special expenses (ie. daycare, medical, extracurriculars) or shared-parenting set-offs under section 9. The child’s specific needs do not change the table amount itself when a child lives primarily in one parent’s care.
Can Someone Quit Their Job to Avoid Child Support?
Some parents think that by quitting their job, or deliberately reducing their income, they can lower their child support payments or eliminate the obligation entirely. This issue comes up regularly in support disputes.
If you suspect your ex is deliberately suppressing their income to reduce child support, you can ask the court to step in. Where the court finds that a parent is deliberately minimizing or misrepresenting their income, the Federal Child Support Guidelines empower the judge to impute income to that parent.
What Is Imputed Income?
Imputed income is income the court assigns to a parent for the purpose of calculating child support, even if that number does not match what the parent actually earned or reported. Instead of taking the parent’s self-reported income at face value, the court substitutes a figure that reflects what the parent could reasonably earn. The court then calculates child support based on that substituted number.
The legal authority to impute income is section 19 of the Federal Child Support Guidelines. The leading Ontario authority is Drygala v. Pauli, 2002 CanLII 41868 (ONCA), which set out what is now commonly called the Drygala test for intentional underemployment. The court looks at the payor’s past earnings, qualifications, realistic job prospects, and the circumstances of the change in employment. The Court of Appeal later confirmed in Lavie v. Lavie, 2018 ONCA 10 that a finding of intentional underemployment does not require proof the parent intended to evade child support — a deliberate choice to earn less is enough.
Quitting vs. Losing a Job: Why the Reason Matters
Courts draw a sharp line between a parent who voluntarily quits their employment and a parent who involuntarily loses their job. The first situation is a classic case where income can be imputed. The latter is less likely to result in an imputation.
A parent who is laid off, made redundant, or otherwise unemployed through no fault of their own is generally not penalized. Neither is a parent unable to work due to a documented health issue, or a parent transitioning through legitimate retraining with a clear long-term upside. The payor bears the onus of explaining the change. That usually means producing termination letters, medical records, enrolment documents, or similar evidence. A parent who quits shortly before or after separation without a credible reason invites a finding of intentional underemployment and an imputation of income at (or close to) the prior earning level.
When the Court Will Impute Income
| Reason for Job Change | Likely Court Response | What the Payor Needs |
|---|---|---|
| Laid off without cause | No imputed income | Termination letter, details related to any severance received, records of efforts to secure alternate commensurate employment |
| Documented health issue | No imputed income | Medical records, note from a physician |
| Retraining with clear long-term upside | May avoid imputed income if the plan is reasonable | Enrolment documents, plan evidence |
| Voluntarily quit without good explanation | Income imputed at earning capacity (often tracks prior level) | Credible explanation |
| Switch to lower-paying job by choice | Income imputed at earning capacity | Evidence that the change was reasonable |
When Courts May Impute Income
Section 19 of the Federal Child Support Guidelines empowers the court to impute income in a range of situations, including where the court finds that the payor parent is:
- intentionally under-employed or unemployed;
- diverting income in a way that affects the amount of child support required;
- failing to use property in a reasonable way to generate income;
- hiding or failing to disclose income (including corporate earnings, side work, or cash income);
- taking unreasonable deductions from income;
- purposely taking on a job that does not match their level of experience or education;
- failing to make a reasonable effort to find suitable work; or
- failing to provide a good reason for quitting a job.
If a court finds that a parent is engaging in this conduct to reduce or avoid child support, the judge can apply the Drygala framework to decide the issue surrounding imputation. The analysis runs along these axes:
The Drygala Factors
| Factor | What the court considers |
|---|---|
| Intent | Was the income drop deliberate, reckless, or beyond the parent's control? |
| Capacity | What could the parent reasonably earn given age, education, skills, and health? |
| Job market | Are suitable jobs realistically available in the parent's area? |
| Effort | Has the parent made reasonable efforts to find or keep work? |
| Timing | Did the change happen suspiciously close to separation? |
What About Hiding Income?
Hiding income is a common circumstance we see in family court. It can take many forms. Cash work that never appears on a T4, unreported side income, retained corporate earnings the payor controls but never draws as personal income, or money funnelled through a spouse or family member.
Courts have strong tools to respond. Under the Family Law Rules and the Federal Child Support Guidelines, the court can order full financial disclosure. It can draw adverse inferences from incomplete disclosure. It can order a forensic review of corporate records. It can impute income at a number that reflects what the parent could reasonably be earning.
Where a payor’s income flows through a corporation they control, section 18 of the Federal Child Support Guidelines can permit the court, in appropriate cases, to attribute all or part of the corporation’s pre-tax income to a shareholder, director, or officer for support purposes. Penalties for non-disclosure can include paying the other side’s legal costs, retroactive adjustment of support (including arrears), and contempt in the more serious cases.
What Happens If Child Support Isn’t Paid
Stopping support without a court order can lead to arrears, enforcement actions, and additional legal consequences. In Ontario, child support orders are enforced through the Family Responsibility Office (FRO). The FRO can garnish wages, intercept federal payments, suspend driver’s licences, and request federal restrictions on passports and other documents. Interest accrues on unpaid support. Courts are generally cautious about reducing accumulated arrears, and the governing framework is now set out by the Supreme Court of Canada in Colucci v. Colucci, 2021 SCC 24.
Frequently Asked Questions
Can my ex quit their job to avoid paying child support?
No. Ontario courts can impute income to a parent who intentionally reduces their earnings to avoid or lower child support. The payor's reported income is not the ceiling. The court can set support based on what the parent could reasonably earn given their education, experience, and the job market, using the framework in Drygala v. Pauli, 2002 CanLII 41868 (ONCA).What does it mean to "impute" income?
Imputing income means the court assigns an income figure for the purpose of calculating child support, regardless of what the parent actually earns or reports on their tax return. It is the court's tool for stopping parents from dodging support through voluntary underemployment or hidden earnings.Does the court automatically impute income when a parent quits their job?
No. Courts look at the reason for the change. A parent who leaves work for legitimate reasons, such as illness, retraining, or a credible plan to return to higher earnings, is treated differently than one who quits without good reason shortly before or after separation. The payor usually has to explain the decision with evidence.I lost my job — do I still have to pay child support?
Yes, but the amount can be reviewed. Losing work through no fault of your own (layoff, illness, company closure) is treated differently from voluntarily quitting. You remain obligated to pay support under the existing order until it is formally varied. If your income has dropped materially, bring a motion to change under section 17 of the Divorce Act or section 37 of the Family Law Act as soon as the change is clear. Courts are reluctant to reduce arrears that accumulate while you wait.What if I think my ex is hiding income?
Bring it to the court's attention. The court can order full financial disclosure, draw adverse inferences from incomplete disclosure, order a forensic review of corporate or business records, and impute income at a figure that reflects what the parent could reasonably be earning. Penalties can include paying the other side's legal costs and retroactive adjustment of support.Can support be adjusted retroactively if a parent was hiding income?
Yes. In D.B.S. v. S.R.G., 2006 SCC 37, the Supreme Court of Canada confirmed that courts can order retroactive adjustment of child support where a payor's income has increased and they failed to disclose it. That framework was refined in Colucci v. Colucci, 2021 SCC 24, which is now the governing authority on retroactive variation of child support. Retroactive orders can include arrears.For more information on child support payments and obligations, contact Krol & Krol at 905.707.3370.
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