How To Talk To Your Parents About Estate Planning?

The Financial Reality of Raising a Child in Ontario According to MoneySense.ca , the average cost of raising a single child to the age of 18 in Ontario is approximately $243,660—and that is only for the very bare essentials. This figure does not account for the rising costs of post-secondary education, nor does it consider the unique circumstances of children with special educational or medical needs. It excludes the "extras" that define a childhood: extracurricular sports, music lessons, travel, and summer camps. Ideally, every parent contributes as much as they can to the support of their children, both financially and emotionally. However, when a relationship ends, the seamless management of a shared household budget disappears. After a divorce or separation, one parent may find themselves bearing the brunt of the financial burden alone, even when the other parent is capable of contributing. Conversely, a paying parent may face financial hardship due to a job loss or injury, making existing payments unsustainable. At Sterling Law, founded in 1992 by Helen Sterling Clarke, we provide the comfort and support you need during these challenging transitions. With over 30 years of experience serving Brampton, Toronto, and the Greater Toronto Area (GTA), our client-focused approach ensures that your needs—and the needs of your children—are our primary result. The Legal Framework: The Child Support Guidelines In Toronto and throughout Ontario, child support is not a matter of guesswork. It is governed by the Child Support Guidelines. These are a set of rules and tables used to determine the amount of support a paying parent must contribute. The underlying principle of Ontario law is that children have a legal right to benefit from the financial means of both parents. This right belongs to the child, not the parent, which means child support cannot be "waived" or negotiated away in a manner that leaves the child with insufficient resources. Who is the Payor? Typically, the parent with whom the child lives most of the time is the "Recipient," and the parent who lives outside the primary home is the "Payor." However, the definition of a parent in Ontario is broad. Sometimes the payor is not the biological parent but someone who has "stood in the place of a parent" (often referred to as in loco parentis ), such as a step-parent who has formed a significant parental bond with the child. Step 1: Calculating "Base" Child Support (The Table Amount) The first component of child support is often referred to as Base Child Support. This is a fixed monthly amount intended to cover the child's basic necessities, such as food, clothing, and shelter. How the Table Works The amount of base support is determined by three main factors: The Payor’s Annual Income: This is usually based on the "Total Income" line of their T1 General Income Tax Return from the previous year. The Number of Children: The amount increases with each additional child. The Province of Residence: Because the cost of living and tax rates vary by province, Ontario has its own specific tables. For example, a parent in Toronto earning $70,000 per year with two children will pay a different "Table Amount" than a parent earning $100,000 with one child. Parenting Time Arrangements The calculation can shift depending on the living situation: Primary Care: If the child spends more than 60% of their time with one parent, the other parent typically pays the full Table Amount. Shared Parenting: If the child spends at least 40% of their time with each parent, the court may look at the "offset" amount (the difference between what each parent would pay the other) and consider the increased costs of maintaining two suitable homes for the child. Step 2: Special or Extraordinary Expenses (Section 7) Base support only covers the "bare essentials." In many Toronto families, children have expenses that go beyond food and shelter. These are known as Section 7 Expenses. To qualify as a Section 7 expense, the cost must be necessary (in the child’s best interest) and reasonable (given the combined means of the parents and the family's spending habits before the separation). Common Section 7 expenses include: Childcare: Expenses incurred due to the custodial parent's employment, illness, or education. Medical/Dental Insurance: Premiums and unreimbursed healthcare costs (orthodontics, therapy, etc.). Extraordinary Educational Expenses: Private school tuition or tutoring. Post-Secondary Education: Costs for college or university. Extracurriculars: Competitive sports, specialized arts programs, or high-level music lessons. In most cases, these expenses are shared by the parents proportionally based on their respective incomes. If Parent A earns $60,000 and Parent B earns $40,000, Parent A would typically cover 60% of the Section 7 costs. Changing the Order: When Life Evolves Child support is rarely "set it and forget it." As children grow and parents' careers evolve, the support amount may need to be adjusted. Seeking a Decrease If you are the Payor and your financial situation has changed—perhaps you have lost your job, suffered an injury, or seen a significant decrease in commissions—you have the right to seek a variation. However, time is of the essence. The longer you wait to seek a decrease, the more difficult it becomes to justify the change retroactively. You will be required to provide clear documentation of your income and a valid justification for the decrease. Seeking an Increase If you are the Recipient and you know the Payor’s income has increased significantly, you are entitled to ask for an increase. At Sterling Law, we caution clients not to wait. If you are aware of your entitlement but take no steps to obtain it for an extended time, a court may eventually find that you have effectively waived your right to those retroactive payments. The Sterling Approach to Child Support At Sterling Law, we provide more than just calculations; we provide a strategy. Our three-step approach is designed to protect you from the moment you call: Immediate Guidance: We answer your questions as soon as possible to put your mind at ease and start planning for your changed circumstances. Professional Burden-Sharing: Once retained, we take over the timelines and legal complexities, ensuring you aren't solving these problems alone. Decisive Action: We move quickly to protect your financial rights and assert the needs of your children, aiming for the most positive outcome possible. Our reputation in the Region of Peel and the GTA is built on client-focused service. We understand that every family is unique, and we listen to what is important to you to find the most effective legal path forward. Take Control of Your Financial Well-Being Navigating the Child Support Guidelines in Toronto can be complex, but you don't have to do it alone. Whether you are seeking fair support for your child or need to adjust your payments to reflect your current reality, having an experienced legal team is essential. Why Choose Sterling Law? With over three decades of experience, Helen Sterling Clarke and her team specialize in empowering families. We offer full or partial representation (unbundled legal services) to fit your specific needs and budget. From establishing base support to litigating complex Section 7 expenses, we are the GTA community’s trusted partner in family law. Don't allow time to pass and jeopardize your rights. Take advantage of our expertise and ensure that your children are provided for fairly and sustainably.

Congratulations on your upcoming marriage! This is a season of profound joy and shared aspirations. However, as you prepare for your life together in the Greater Toronto Area, it is also a time for "forward-thinking planning." At Sterling Law, we view ourselves as your partners in life, wealth, and legacy. Based in Brampton for over 30 years, our team, led by Helen Sterling Clarke, has helped thousands of couples in Mississauga, Oakville, and across the Peel Region navigate the legal complexities of joining two lives. While discussing a prenuptial agreement (often called a "Marriage Contract" in Ontario) might not feel like the most romantic pre-wedding task, it is one of the most strategic moves you can make to protect your assets and secure your family’s future. In fact, thirty-eight percent of Canadians who marry will eventually separate or divorce. A well-drafted agreement isn't about planning for failure; it’s about taking control of your financial destiny and bringing peace of mind to your new household. What is a Prenuptial Agreement Under Ontario Law? In Ontario, the Family Law Act governs how property is divided between spouses upon separation or death. Without a private agreement, the law dictates a process called the "Equalization of Net Family Property." This process essentially adds up the growth in each spouse's net worth during the marriage and splits that value 50/50. A prenuptial agreement allows you and your partner to "stay in the driver's seat." It is a valid, binding contract that sets out different terms and conditions from those provided by the Family Law Act or the Divorce Act. It allows you to define your own rules for fairness based on your unique circumstances. What You Can Include in Your Agreement A robust marriage contract drafted by the strategic team at Sterling Law can cover: Pre-Marital Assets: Identifying property you are bringing into the marriage and documenting its value to ensure it stays separate. Family Property Division: Deciding exactly how the matrimonial home, shared assets or other assets held by each of you will be dealt with if separation occurs. Spousal Support: Agreeing in advance on whether support will be payable, and if so, how much or for how long. Household Responsibility: Allocating economic responsibility for running the household during the marriage. Estate Planning: Agreeing on what happens to property if one spouse should pass away, which is critical for those with children from previous relationships. What You Cannot Include It is a common misconception that you can settle everything in a "prenup." Under Canadian law, you cannot make enforceable arrangements regarding: Custody and Access (Parenting Time): The courts decide this based on the "best interests of the child" at the time of separation. Child Support: You cannot contract out of the Federal Child Support Guidelines, as child support is considered the right of the child. Do You Specifically Need a Prenuptial Agreement? While every couple can benefit from the clarity an agreement provides, certain situations make a marriage contract essential for protecting your wealth and preserving your legacy. 1. You Are a Business Owner or Professional If you own a private corporation, a professional practice, or have significant stock options, these are "complex assets" that can be difficult to value and divide years later. A prenuptial agreement can shield your business from being liquidated or carved up during a divorce, ensuring business succession planning remains intact. 2. You Have a Significant Inheritance or Family Trust Under Ontario law, inheritances received during a marriage are generally excluded from equalization— unless they are put into the matrimonial home or comingled with family funds. An agreement ensures that family wealth stays within your bloodline and is protected from unintentional equalization. 3. This is a Second Marriage For those entering a relationship later in life, you likely have more assets and, potentially, children from a previous marriage. A contract is vital to ensure that your "Legacy" is preserved for your children while still being fair to your new spouse. The Sterling Law Approach: Sophisticated and Strategic With over 30 years of experience, we at Sterling Law understand that we are working with real people with unique situations and aspirations. We don't believe in "cookie-cutter" legal documents. We offer tailored strategies grounded in financial acumen and empathy. Proactive Protection of Your Future We guide you through the process of Financial Disclosure , which is the "gold standard" for making a prenuptial agreement enforceable. If both parties do not fully and honestly disclose their assets and debts before signing, the contract could be set aside by a court later. Our integrated approach helps you take control, reducing the stress that comes with life’s transitions. Negotiation vs. Litigation While we are skilled negotiators dedicated to reaching respectful, private resolutions through collaborative family law and mediation, we are also skilled litigators. If an agreement is challenged, or if the other party is being unreasonable, we are prepared to defend your interests and your assets in court. Securing Your Peace of Mind Marriage is one of life’s most significant periods of growth. By addressing the "what ifs" now, you allow yourself and your spouse to focus on building a life together without the looming cloud of legal uncertainty. A prenuptial agreement is not a sign of distrust; it is a sign of respect for each other’s hard-earned assets and a commitment to transparency. At Sterling Law, we are more than just lawyers; we are your partners in protecting your wealth and securing your family’s future. From our home in Brampton to the vibrant communities of Richmond Hill and Vaughan, we are here to help you navigate this moment with confidence and discretion. Are you ready to protect your personal and business assets before your big day?

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