Spousal Support: Statement of Income and Expenses and Balance Sheet (Form III)
Both spouses (or ex-spouses) must complete this form to permit the court to fix or modify spousal alimony. It must also be completed even if both spouses come to an agreement on spousal alimony. You must also include these documents, where applicable: your employment earnings slip (T-4), financial statements of your earnings from business or self-employment, and a statement of rental revenues and expenses. You must also provide your federal and provincial income tax returns and notices of assessment for the most current year. Current income tax returns and notices of assessment must also be filed.
If you fail to include these documents, the judge may estimate your true revenue, which may lead him to attribute a higher income, with all the risks this entails. In the same vein, be prepared to provide evidence of your expenses and indebtedness, or he may cut your budgeted expenses.
Do not forget to complete the Assets and Liabilities page, or the form will be rejected by the Court!
Each party must indicate the date upon which he or she completed the form and sign it. Each party must be sworn in before a commissioner of oaths, who signs and indicates the date of swearing in.
There are income tax calculations which must be done using tax software, to calculate how much income tax the receiving spouse would have to pay upon payment of alimony, and how much income tax the paying spouse would save. This calculation is necessary because spousal alimony is taxable for the receiving spouse and tax-deductible for the payer spouse. Also, a low income receiving spouse (usually the wife) will likely lose certain tax credits and deductions upon receipt of alimony, because her gross income will increase - tax software will calculate this loss of tax credits!
