Client Finances

The Finances section of a matter is where you enter all financial information for both parties. This data drives child support and spousal support calculations, financial statements, and other documents generated by Divorcepath. Accurate and complete financial data is essential for reliable results.

Finances Overview

To open it, click Finances in the matter's sidebar. The page starts with summary cards for Income, Property, Support, and Budget, followed by sections for income, support, child expenses, property and debt, and budget. Each section shows both parties side by side, and changes save automatically. Each section is designed to capture the specific types of financial data required for Canadian family law support calculations.

Adding Income Sources

Income is the foundation of support calculations under the Federal Child Support Guidelines. Divorcepath supports a range of income source types:

• Employment income — salary, wages, bonuses, commissions, and other employment earnings. Enter the gross annual amount as reported on the party's T4 slip or pay stubs.
• Self-employment income — income from a business, profession, or trade. This may require adjustments for personal expenses, depreciation, or other items commonly addressed in guideline income calculations.
• Investment income — dividends, interest, capital gains, and other income from investments.
• Rental income — net income from rental properties after deducting eligible expenses.
• Other income — government benefits, pensions, employment insurance, workers' compensation, and any other sources of income not covered by the categories above.

To add an income source:

1. Navigate to the Finances section of the matter.
2. In the Income section, select the tax year.
3. In the column for the party (your client or the other party), click + Add next to Income and select the appropriate income type.
4. Enter the income amount and any relevant details.
5. To record a guideline income adjustment, such as union or professional dues, click + Add next to Adjustments.

You can add multiple income sources for each party. Click any item to review its details and supporting documents. All income sources and guideline adjustments are combined to determine the party's Adjusted Guideline Income for support calculation purposes.

Income by Tax Year

Financial data in Divorcepath is organized by tax year. Use the Tax Year buttons to switch between the current year and previous years, or add an earlier year. Entering income for multiple tax years is useful when income has varied significantly from year to year or when a court may consider a multi-year average. Be sure to select the correct tax year when entering income information so that calculations reference the appropriate period.

Support

The Support section shows the results of a saved support calculation. Click Select Support Calculation (or Link calculation on the Support card) to choose a calculation, then compare its low, mid, and high spousal support scenarios. The active scenario's values are used when you generate financial statements, court forms, and other documents that reference support amounts.

Child Expenses

The Child Expenses section records special or extraordinary expenses for the children (section 7 expenses), such as childcare, medical and dental, educational, and extracurricular costs. Click + Add to add an expense, choose the expense type and the child, then enter the total expense, any credits or deductions, and the amount each party pays. Divorcepath shows annual and monthly totals, and the expenses are shared in proportion to the parties' incomes.

Adding Expenses and Budget Items

The Budget section allows you to record the living expenses for each party. Common expense categories include housing, transportation, food, childcare, and personal expenses. Each item shows both a yearly and a monthly amount. To add an expense:

1. In the Finances section, scroll to Budget.
2. In the party's column, click + Category, or click + beside an existing category.
3. Choose the expense category, add a description if needed, and enter either the yearly or the monthly amount.
4. Save the item.

For larger changes, open the Budget Editor. The Budget Comparison at the end of the section compares the parties' monthly totals. Expense data is used to generate financial statements and can support arguments about the standard of living or the needs and means of each party in spousal support analyses.

Property and Debt

The Property & Debt section captures each party's property and debts:

• Property — real property such as the matrimonial home, vehicles, bank accounts, investments, RRSPs, pensions, and other property. Click + Add next to Property, then enter the value at the valuation date and, where applicable, the value at the date of marriage.
• Debt — mortgages, credit card debt, loans, lines of credit, and other obligations. Click + Add next to Debt and enter the outstanding balances.

Click any value to edit it inline, or click a row to open its full details. The table allocates each item between the parties and totals each party's net assets, exclusions, date of marriage property, and net family property, along with the resulting equalization payment. For a detailed equalization analysis, use the Family Property Calculator. Asset and liability information is also used in financial statements.

How Financial Data Connects to Calculations and Statements

The financial data you enter in the Finances section flows directly into several key outputs:

• Child support calculations — total guideline income determines the applicable table amount under the Federal Child Support Guidelines. Special or extraordinary expenses (section 7 expenses) can also be added and are shared between the parties in proportion to their incomes.
• Spousal support calculations — income data is used to calculate spousal support ranges under the Spousal Support Advisory Guidelines, taking into account the incomes of both parties, the length of the relationship, and other relevant factors.
• Financial statements — income, expenses, assets, and liabilities are automatically populated into court-required financial disclosure forms.

Tips for Accurate Data Entry

To ensure the most reliable calculations and documents:

• Use source documents — wherever possible, enter financial data directly from tax returns, T4 slips, pay stubs, bank statements, and other official records.
• Be consistent with periods — enter income as annual figures. Budget items show both yearly and monthly amounts, so check that each amount is entered for the right period.
• Account for all income sources — guideline income includes more than just employment income. Review the party's tax return carefully for dividends, rental income, capital gains, and other sources.
• Update regularly — financial circumstances change over time. Keep income and expense data current, especially when preparing for a court application or negotiation.
• Select the correct tax year — make sure you are entering data for the appropriate tax year, particularly when entering historical income for averaging purposes.

Taking the time to enter complete and accurate financial data will ensure that your support calculations and financial statements are reliable and defensible.