Spousal and Child Support

My Client has a court document which provides for specific monthly amounts for child support and spousal support. (Example $735 for child support and $600 spousal support per month). The single court order contains both requirements.

There is an outstanding balance from the previous years and it is now being handled through a government enforcement program but the past due balance still exists. This balance is not broken out by type of payment. It does, however have each payment for the current year in full (ie: each month the maintenance program took out the $735 and $600 used in my example)

The CRA states all child support payable to a recipient must be fully paid before any amounts paid as support can be claimed. That would suggest that the amounts are not deductible by the payor but my client is the recipient. Does the recipient have to claim the spousal amounts as income if there are outstanding child support payments?

Spousal support payments

Generally, support payments made under a court order or written agreement for the maintenance of the recipient are taxable to the recipient and deductible by the payer if both of the following situations apply:

  • The order or agreement clearly states the amount to be paid for the current or former spouse or common-law partner.
  • All payments for child support are fully paid for the current and previous years.