Ontario’s Family Law Act provides a formula for dividing the value of assets and debts that were acquired during the marriage. The method is called equalization of net family properties. Each spouse must fill out and swear a financial statement. The financial statement lists all assets that each spouse owned on the date of separation, all debts that each spouse owned on the date of separation, all assets that each spouse owned on the date of marriage, all debts that each spouse owned on the date of marriage and any gifts or inheritances that each spouse received during marriage. The financial statement will be used to calculate each spouse’s net family property. In the end, the spouses’ net family properties will be equalized.

The Ontario Superior Court of Justice was asked to address this very question in the September 30, 2003 case of Moffatt v. Moffatt. After the couple separated in 1997, they entered into a separation agreement that placed their two children with the mother. The father was a teacher and earned $63,000 per year. In June 2001, he took advantage of a temporary window of opportunity and chose to take early retirement. He accepted the converted value of his teachers’ pension in the sum of $526,026.63 and left the workforce.

Mr. Justice Campbell decided that the father, by choice, had become intentionally under-employed as described in section 19 of the Child Support Guidelines. The court decided that the father made a decision to benefit himself and himself only. Because the father was only 54 years old when he took early retirement, and because he had an ongoing obligation to his two children, his decision had a significant negative impact on his two children.

The father was ordered to pay child support for his children in the amount of $929 per month based upon an attributed income of $70,200 per year that would continue up to the date when he otherwise would have been entitled to retire.

If child support is supposed to be calculated based on income, then it is reasonable to assume that if a person’s income is reduced because of job loss, then child support should also be reduced. But in the case of Aboagye v. Sakyi [2012] O.J. No. 575, Mr. Justice Sherr ruled that if an employee is fired, he cannot avoid child support based on his own misconduct.

In this case, the parents had four children aged 13, 11, 9, and 4 years. The father worked full-time at two different jobs for at least two years prior to the parties’ separation. He had worked as a forklift operator for one employer since 1996, and as a machine cleaner for a second employer since 2007. The father’s Notice of Assessment for 2009 showed that he earned a gross income of $62,500. The father left his second job as a cleaner at the end of June 2010. He continued working as a forklift operator. The father did not pay any child support until the fall of 2011 and accumulated over $17,000 in child support arrears. The father earned $50,755 in 2012. In court, the father testified that he was fired just three days before the trial began. He stated that he was given vacation pay, but no severance payment. He claimed that this dismissal was wrongful and he planned to sue for wrongful dismissal. The mother testified that the father was a liar and that he conspired with his employer to engineer his job loss for this case.

The father’s employer stated that the father was warned twice about poor performance and was dismissed for cause. The employer listed reasons for his dismissal that included: not following company policy for signing loading lists and work orders; using his cell phone during company time; using his cell phone in the loading area and inside loading containers; being frequently late and absent; accepting money from customers to perform additional services during company time; and damaging company property.

The court held that if the employer was justified in firing the father, then the father cannot use his dismissal as grounds for reducing support. Where the loss or reduction in employment income is the result of one’s own actions or misconduct, the support obligations will not be reduced or cancelled. Moreover, the court stated that if the father is correct that he was wrongfully dismissed, he will likely receive a significant income-replacement award.

In the end, the court imputed to the father an income at $41,000 per year, and was ordered to pay child support based on this amount.