- The difference between a divorce and an annulment - April 15, 2024
- Hidden costs to be aware of when buying a house - April 3, 2024
- The rules about legally transporting a firearm in Canada - April 1, 2024
By LegalMatters Staff • Many couples set aside money for their children’s education through registered education savings plans (RESPs).
Both parents can contribute to the plan up to a set amount each year. However, issues may arise when it comes to divorce and educational savings.
That is because under federal rules, RESPs are not required to be divided between parents. One person could have been the sole contributor or perhaps the plan was in one parent’s name and not both.
An RESP is also an asset that is not protected from creditors. If your ex-partner files for bankruptcy, creditors could demand all or part of the value of the plan. And if your children decide not to pursue post-secondary education, the government can claw back the contributions it made to the plan over the years
There are two guidelines guiding the court when determining child support. The Federal Child Support Guidelines apply to parents who are divorcing or who are changing a child support order. The Alberta Child Support Guidelines are part of the provincial Family Law Act and apply in all other situations.
Edmonton family lawyer Jaskiran Bajwa says the two guidelines are similar and include formulas to calculate the base or “table” amount of child support that the payor is required to contribute, based on the number of children and the payor’s income.
She notes that educational expenses are s. 7 expenses, which are special or “extraordinary” expenses incurred when raising children.
“Parents in Alberta are obligated to meet costs associated with college or university,” says Bajawa. “That is why education expenses are among the most commonly court-ordered s. 7 expenses.”
