Endorsement

Court File No.: 44922-11
Date: 2012-01-12
Superior Court of Justice - Ontario

RE: Tri Dai Lam Applicant

AND:

Petra Hanzelkova-Lam Respondent

BEFORE: James W. Sloan

COUNSEL:
Counsel, for the Applicant - Self Represented
Counsel, for the Respondent - Raymond Wrubel

HEARD: January 11, 2012

[ 1 ] At the commencement of the motion both parties agreed that an order would go in terms of paragraphs 1, 2, 3, 4, 7, and 8 (except that the amount of insurance will be $200,000) of the Respondent’s Notice of Motion.

[ 2 ] The divorce shall be severed from the corollary relief and either party may proceed to obtain a final order for divorce.

[ 3 ] Since it is likely that the children would live with the Applicant in the event of the untimely death of the Respondent she shall also maintain $200,000 worth of life insurance payable to the Applicant on the same but reverse terms as set out in paragraph 8 of the Respondent’s Notice of Motion.

[ 4 ] The remaining issue for me to decide is what the income of the Applicant is for child support purposes.

[ 5 ] The Applicant’s evidence on this matter is lacking.

[ 6 ] He has a College diploma in accounting. He does accounting/booking work and sells accounting software.

[ 7 ] In 2008 he earned $43,350 from employment and $30,330 gross with a net of $5,262 from business.

[ 8 ] In 2009 he shows gross earnings of $63,577 with net earnings of $13,421 and paid $2,400 into his RRSP.

[ 9 ] In 2010 he shows gross business income of $43,389 and net earnings of $14,443 and a RRSP contribution of $2,400.

[ 10 ] There is almost no evidence before me to allow me to assess whether his claimed business deductions are appropriate.

[ 11 ] I would not allow any of his home office deductions for child support purposes.

[ 12 ] The remaining deductions with the possible exception of purchases of what I assume is accounting software seem unreasonably high given the net income shown on the tax returns.

[ 13 ] In addition no material is before me to show why the expenses were necessary in the amounts set out on the tax returns.

[ 14 ] In 2010 the Applicant deposited $46,334 into the joint bank account.

[ 15 ] In 2010 the Applicant spent 3 weeks in Vietnam and in 2011 he spent 2.5 months in Vietnam. The Applicant claims that he borrowed the money to go to Vietnam but there is no material before me to show how the trips were financed.

[ 16 ] Based on all of the evidence before me I am imputing income to the Applicant for the purposes of child support in the amount $60,000 per year.

[ 17 ] Since there are 4 children this would translate into monthly support payments of $1,382 per month.

[ 18 ] The parties have agreed that child support should have started on January 1, 2011 and since the Applicant has been paying $271/mouth there are child support arrears of [($1,382 -$271) x12] = $13,332 as of December 13, 2011.

[ 19 ] The respondent claims there are extracurricular expenses of $7,300 of which $6,000 is spent on the oldest child’s dance.

[ 20 ] While this spending is disproportionally large with respect to one child that is not for the court to determine but there are finite funds in this family and I would cap the extracurricular expenses that the Applicant is obligated to contribute to at $6,000 per year.

[ 21 ] Based on the respondent’s earnings of $67,265 the applicant shall pay 47% of the first $6,000/year of extracurricular expenses for the children.

[ 22 ] In addition the Applicant shall pay 47% of all other appropriate Section 7 expenses one of which I understand is an approximately $2,000 orthodontic expense.

[ 23 ] The parties shall exchange tax returns each year by June 1 and their Notices of Assessment within two weeks of its receipt. At the request of either party all other appropriate accounting documentation needed to verify the figures on either parties tax return shall be produced with 14 days.

[ 24 ] The Respondent shall have her costs of this motion. If the parties are unable to agree on the costs the Respondent shall forward her brief submission on costs by January 25, the applicant shall forward his response by February 3 and the Applicant shall forward her reply if any by February 1, 2012.

James W. Sloan

Date: January 12, 2012