The respondent father brought a motion for a summary decision on whether settlement funds of $175,000 USD received for copyright infringement of his musical composition constituted "income" for child support purposes under the Child Support Guidelines.
The applicant mother cross-moved, arguing the funds were income or, alternatively, that income should be imputed.
The court held that the settlement funds constitute "income" for child support purposes, even if not taxable for income tax purposes, as they represent compensation for lost royalties and profits from the copyright.
The court allowed reasonable deductions for expenses directly incurred in recovering the damages and addressed tax grossing-up and currency conversion issues.
