The richer they are the stingier they get

Federal government imposes strict child support guidelines for wealthy fathers

Hosts of lawyers make a living out of litigation on alimony. Suits lasting for years are fought around the so-called 'child support' issue, exacerbating people and cluttering courts.
The Italian-Canadian community, until some years ago relatively immune to the spread of divorce, has now reached the Canadian 'mainstream' in regards to the percentage of marriages that end up in separation and breakdowns. In Canada, there are 1.5 million divorcees and 14 million married people. Divorce is not a taboo any more, and Italian-Canadians took notice and conformed.
"Ninety-five percent of the couples deciding to underwrite a pre-nuptial agreement are made up of Italians," explains Lorraine Bortolussi, family lawyer and owner of a legal studio that's been dealing with family litigations for the past 18 years.
According to Bortolussi, "those undertaking a serious relationship must first agree with their partner to sign a contract where the patrimonial dispositions in case of breakdown are clearly stated." A pragmatic piece of advice, which nonetheless sends shivers down the spines of people who grew up within a culture permeated with the romantic notion that the love between husband and wife should last forever.
"Come on," the lawyer says, "deciding in advance what's separate property and what's joint patrimony is merely being smart. On the other hand, statistics show that most marriages do end. Anyway, what could be the problem with signing such an agreement, if both parties do it in good faith?"
There are many things to know, and not all of them are obvious. "For instance, in case of a common law cohabitation," Bortolussi says, "the person who plays the paternal role, even though he may not be the biological father, is legally obligated to pay for the support of the children of his ex-common law spouse the same amount he should pay for his natural children".
According to Bortolussi, the guidelines set by the federal government with the May 1997 reform are quite efficacious. Whether one's income is $20,000 or in the millions, the principle is that support must be more or less proportionate to income, in accordance with some fixed tables. Other factors are to be disregarded: the reasons for divorcing, the income at the moment of separation, or even further family responsibilities (other children) that the father might have subsequently generated.
"Everything goes quite smoothly. Paradoxically, the worst problems arise when the supporting spouse (usually the husband) has a large income." If one earns above $150,000 per year, the judge acquires wider latitude in setting the amount to be paid.
The most recent case to hit the front pages proves this point. Four children have been awarded the (unprecedented in Canada) figure of $36,000 per month in child support. The sentence, by the Ontario Superior Court, established that the father, a rich Mississauga salesman raking in record commissions, will have to pay $432,000 per year for the four of them to cover the cost of holidays, cottage, and ski lessons.
To date, an ex-spouse's request for money in order to buy a cottage in Muskoka had never been heard in a court. And yet, this man will be more than glad to dish out the money; considering his income (to the tune of $4.2 million yearly), he could have had it much worse. Mr. Justice John Lankin went easy on him, as federal guidelines would have caused the payment to be set at $65,000 per month. The ex-wife had added other 'needs' that would have brought the bill to $80,000 per month. The court rejected the requests for money that would be used to buy two horses, a boat, and to subscribe to an exclusive golf club in Florida.
"I noticed an increased sense of responsibility in men in recent years," added Bortolussi. "They pay quite willingly for their children. The philosophy of the federal guidelines is that the kids have a right to a given lifestyle. Living five days a week in a one-bedroom apartment and spending the weekend on dad's yacht can be traumatic. But nowadays these situations are rare. There still are women who live on welfare and have a child with a baseball player, but usually men pay willingly for a child. Not so much for an ex-wife."
This is the reason for some of the bitterest fights. The ex-husband has the feeling that over a certain amount, his payments will enrich the ex-spouse, instead of contributing to the wellbeing of his children. "Consider that child support is a net, and the woman does not include it in her tax return. The father pays his ex-wife and cannot deduct the sum from his taxes."
A series of sanctions are foreseen in forcing reluctant fathers to pay: "Those who do not pay risk going to jail, losing their driving licence, passport, piloting licence, or any other federal licence. I saw some fathers who, the day after having had their driving licence suspended, turned up with $50,000 in overdue payments that they had claimed not to possess."

Publication Date: 2002-04-07
Story Location: http://tandemnews.com/viewstory.php?storyid=1184