ARTICLE
24 September 2019

New Legislative Changes To Federal Support Enforcement Laws

TM
Torkin Manes LLP

Contributor

Torkin Manes LLP is a full service, mid-sized law firm based in downtown Toronto. Our clientele ranges from public and private corporations, to financial institutions, to professional practices, to individuals. We have built our firm from the ground up—by understanding our clients’ business needs, being results-oriented, practical, smart, cost-effective and responsive.
Through their enforcement efforts, federal, provincial and territorial governments disburse about $2 billion annually to Canadian families to satisfy outstanding support debts.
Canada Tax
To print this article, all you need is to be registered or login on Mondaq.com.

Through their enforcement efforts, federal, provincial and territorial governments disburse about $2 billion annually to Canadian families to satisfy outstanding support debts. At the federal level, it is estimated that approximately $185 million in support payments was garnisheed in 2017 and 2018 under the Family Orders and Agreements Enforcement Assistance Act  (FOAEAA).

In addition to federal enforcement efforts, every province and territory in Canada has established an enforcement service, referred to as a Maintenance Enforcement Program (MEP), which has legislative authority to register, collect and enforce family support orders or agreements for the benefit of family support recipients, whether they are former spouses or children.

Under existing provincial and territorial legislation, a support agreement or order may be automatically enrolled with the MEP for enforcement, such that the MEP acts as the third-party intermediary between the payor and the recipient. In Ontario, the MEP is called the Family Responsibility Office (FRO).

Existing enforcement tools have proven ineffective against a growing number of support payors, who have learned to hide their assets outside the reach of MEPs. In many instances, support payors can skirt their support obligations by simply refusing to file their annual income tax return, such that the MEP cannot recalculate their support obligation based on their current income, as mandated by the federal Child Support Guidelines.

Failing to file an annual income tax return also prevents the MEP from garnishing any income tax refunds available to the support payor to satisfy an unpaid support obligation.  

This article originally appeared on the Lawyer's Daily. Visit the Lawyer's Daily to read the complete article. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

ARTICLE
24 September 2019

New Legislative Changes To Federal Support Enforcement Laws

Canada Tax

Contributor

Torkin Manes LLP is a full service, mid-sized law firm based in downtown Toronto. Our clientele ranges from public and private corporations, to financial institutions, to professional practices, to individuals. We have built our firm from the ground up—by understanding our clients’ business needs, being results-oriented, practical, smart, cost-effective and responsive.
See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More