Newton v. Newton, 2017 NSSC 364

SUPREME COURT OF Nova Scotia FAMILY DIVISION Citation: Newton v. Newton , 2017 NSSC 364 Date: 2017-04-21 Docket: 1201-067728; SFH-D-090270 Registry: Halifax Between: Geoffrey Newton Petitioner v. Jocelyn Newton Respondent LIBRARY HEADING Judge: The Honourable Justice Elizabeth Jollimore

Summary: Determination of income where payor has income from dividends. Key words: Family, Child support, Determination of income Legislation: Federal Child Support Guidelines, SOR/97-175,

Schedule II,

section 15 THIS INFORMATION SHEET DOESN’T FORM PART OF THE COURT'S DECISION. QUOTES MUST BE FROM THE DECISION, NOT THIS LIBRARY SHEET . SUPREME COURT OF NOVA SCOTIA (FAMILY DIVISION) Citation: Newton v. Newton , 2017 NSSC 364 ENDORSEMENT Geoffrey Newton v. Jocelyn Newton 2014; 1201-067728; SFH-D-090270 April 21, 2017 • Sarah Harris for Geoffrey Newton • Jocelyn Newton Request to determine child support for June 1, 2015 to May 31, 2016. Decision: Ms. Newton shall pay monthly child support to Mr. Newton of $76.00 from June 1, 2015 to and including May 1, 2016. The resulting arrears owed by Ms. Newton to Mr.

Newton are $912.00. By the parties’ agreement, this amount may be offset against current amounts of child support owed by Mr. Newton to Ms. Newton. Child support paid by Mr. Newton to Ms. Newton, other than for

medical insurance premiums, during the period from June 1, 2015 to and including May 1, 2016 shall be repaid or, by the parties’ agreement, offset against current amounts of child support owed by Mr. Newton to Ms. Newton. Reasons: 1 . At issue is Mr. Newton’s income for 2014. The parties’ Corollary Relief Judgment requires that child support payments from June 1, 2015 to May 31, 2016 be based on the set off amount, calculated having regard to Ms. Newton’s income and Mr. Newton’s income. 2 . The parties agree that Ms. Newton’s 2014 income, for child support purposes, was $71,557.75. 3 . The parties agree that Mr.

Newton earned $32,391.77 during the last four months of 2014. This amount is documented on his T4A from Newton & Associates. 4 . The parties agree that Mr. Newton had income of $11,839.29 earned in June, July and August 2014. 5 . The parties agree that Mr. Newton had dividend income of $22,866.56 in 2014. These dividends were paid to Mr. Newton in 2014 by G.C.N. Barristers and Solicitors Ltd. 6 . The Federal Child Support Guidelines require, in

section 15 of

Schedule II, that I use the actual amount dividends received, rather than the grossed up amount which is reported on the tax return. So, I use $22,866.56 in my calculations and not the grossed up figure of $28,582.20 which Ms. Newton has calculated, based on Mr. Newton’s earlier tax returns and the grossed up dividends reported on them. 7 . The amounts agreed upon and the actual dividends in 2014 total $67,097.62. This is the amount that Mr. Newton said was his 2014 income for child support purposes. 8 . Ms. Newton said that Mr. Newton’s 2014 income was $106,327.62.

A small amount of the difference between this and the $67,097.62 I calculated in paragraph 7 arises because of her use of the incorrectly grossed up dividend figure. The remainder of the difference arises because she said Mr. Newton had additional net earnings from G.C.N. Barristers and Solicitors Ltd of $104,030.00. Ms. Newton offset $41,933.44, representing dividends paid out in 2013, against these earnings. 9 . It is correct that Mr. Newton received dividends of $41,933.44 in 2013. According to Stephen Shupe, the accountant who prepared Mr.

Newton’s personal tax return, and – when they were filed – the tax returns for G.C.N. Barristers and Solicitors Ltd and Newton Family Trust (2011), these dividends were paid to Mr. Newton in 2013. Because these were paid to Mr. Newton in 2013, they are not considered part of his 2014 income. 10 . The only dividends Mr. Newton received in 2014 were the $22,866.56 in dividends for the period from January 1, 2014 to May 31, 2014, from G.C.N. Barristers and Solicitors Ltd. I have considered these. 11 . I find that Mr. Newton’s 2014 income for child support purposes is $67,097.62. 12 . On the set-off basis, Ms.

Newton would pay monthly child support to Mr. Newton of $76.00 from June 1, 2015 to and including May 1, 2016. The resulting arrears owed by Ms. Newton to Mr. Newton are $912.00. By the parties’ agreement, this amount may be offset against current amounts of child support owed by Mr. Newton to Ms. Newton. 13 . Child support paid by Mr. Newton to Ms. Newton during the period from June 1, 2015 to and including May 1, 2016, other than that paid for medical insurance premiums, shall be repaid or, by the parties’ agreement, offset against current amounts of child support owed by Mr. Newton to Ms.

Newton. _____________________________ Elizabeth Jollimore, J.S.C.(F.D.)