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Spousal Support

Spousal support, also known as alimony or spousal maintenance, is a type of support paid by one spouse to the other after a separation or divorce. The purpose of spousal support is to help ensure that both parties are able to maintain a similar standard of living after the separation or divorce. It is a contentious issue in family law cases, with inconsistent case law and emotional factors making it difficult to determine the amount and duration of support. 

One key difference between spousal and child support is the tax implications, as spousal support is deductible for the payor and taxable for the recipient.

Courts generally consider the established pattern of the relationship when determining spousal support, with longer marriages and greater income discrepancies resulting in more significant obligations. For example, if one spouse earned a high income while the other stayed at home with the children, the court may be hesitant to require the dependent spouse to immediately return to full-time work after a separation.

Regardless of the parties’ perspectives, it is crucial to recognize that established patterns of parenting and financial obligations during the marriage will likely continue after separation. 

Factors Considered When Determining Spousal Support

Spousal support, also known as alimony or maintenance, is a payment made by one spouse to the other following the breakdown of a marriage or common-law relationship. The purpose of spousal support is to provide financial assistance to the spouse who has been financially disadvantaged as a result of the breakdown of the relationship.

Ontario spousal support is governed by the Divorce Act and the Family Law Act. The Divorce Act applies to married couples who are seeking a divorce, while the Family Law Act applies to unmarried couples who are separating. Spousal support is a complex area of family law that requires careful consideration of a number of factors.

One of the most important factors to consider when determining spousal support is the Spousal Support Advisory Guidelines (SSAGs). The SSAGs are a set of guidelines developed by the Department of Justice that provide a framework for determining the amount and duration of spousal support payments. The SSAGs take into account a number of factors, including the length of the marriage, the income of each spouse, and the standard of living enjoyed by the parties during the marriage.

When determining spousal support, several factors are considered, including:

  • The income and earning capacity of both parties;
  • The length of the marriage or common-law relationship;
  • The age and health of both parties;
  • The needs of each party, including expenses related to childcare and other dependents;
  • Any agreements like Separation Agreement made between the parties regarding spousal support;
  • The roles and contributions of each party during the marriage or common-law relationship, including financial contributions and caregiving responsibilities.

Types of spousal support toronto

When determining spousal support, it is important to consider the individual net disposable income of each spouse. INDI is the amount of income that is left after taxes, CPP contributions, and other deductions have been taken into account. This is an important factor to consider because it reflects the actual amount of income that each spouse has available to them.

It is also important to consider child support when determining spousal support. Child support is a payment made by one parent to the other to help support their children following the breakdown of a relationship. Child support takes priority over spousal support and must be paid before any spousal support is paid.

Spousal support can be agreed upon by the parties in a separation agreement, or it can be ordered by the court. A separation agreement is a legally binding contract that sets out the terms of the separation, including any spousal support payments. If the parties are unable to reach an agreement on spousal support, the court can make a spousal support order.

There are several types of spousal support that may be awarded in family law cases, including:

  • Lump sum support: A one-time payment made by one spouse to the other to settle spousal support obligations.
  • Periodic support: Regular, ongoing payments made by one spouse to the other for a set period of time or until a specific event occurs, such as the recipient spouse remarrying or obtaining employment.
  • Reviewable support: Spousal support is reviewed periodically to ensure that it remains appropriate based on the changing circumstances of both parties.
  • Indefinite support: Spousal support that is paid on an ongoing basis with no set end date, usually in cases where one spouse is unlikely to become self-sufficient due to age, disability, or other factors.

Two Spousal Support Formulas

In Ontario, calculating spousal support can be a complex and nuanced process. There are two basic formulas used, the Without Child Support formula and the With Child Support formula. 

The former is used when there is no child support obligation, and it heavily relies on the length of the relationship. The amount of support ranges from 1.5 to 2 percent of the difference between the spouses’ gross income amounts for each year of marriage or cohabitation, up to a maximum of 50 percent. The support duration ranges from half to one year for each year of marriage or cohabitation and becomes indefinite after 20 years of marriage.

On the other hand, the With Child Support formula prioritizes children’s financial security over the spouse’s, and the child support obligations are calculated first. Spousal support amounts may be significantly reduced for post-separation families with limited means. This formula is based on the Individual Net Disposable Income (INDI) for both parties, and the calculation can only be performed using specialized software. It involves adding together the INDI amounts and transferring spousal support incrementally until the lower-income spouse achieves between 40 and 46 percent of the total INDI.

Modifying Spousal Support

Spousal support can be modified in certain circumstances. If either party experiences a significant change in circumstances, such as a change in income or a change in living expenses, they may be able to apply to the court to have spousal support modified. It is important to note that spousal support cannot be modified retroactively, so it is important to seek legal advice as soon as possible if you believe that a change in spousal support is warranted.

When making a spousal support order, the court will consider a number of factors, including the spousal support advisory guidelines, the income and financial means of the parties, the length of the marriage, and the needs of the parties. The court will also consider any agreements that the parties have reached in relation to spousal support.

It is important to note that spousal support is not a guaranteed right. Rather, it is based on the specific circumstances of each case. The purpose of spousal support is to ensure that each spouse is able to maintain a standard of living that is reasonable in light of their income and financial means.

In Ontario, spousal support can be ordered for a specified period of time, or it can be ordered for an indefinite period of time. Indefinite spousal support is typically ordered in cases where the recipient spouse is unable to become self-sufficient due to age, illness, or other factors.

Domestic Violence and Spousal Support

In cases where domestic violence is present, spousal support can be a particularly sensitive issue. The victim of domestic violence may be hesitant to request spousal support due to concerns about further retaliation from the abusive spouse. However, it is important to remember that spousal support is intended to help ensure that both parties are able to maintain a similar standard of living. A family law lawyer can help victims of domestic violence navigate the spousal support process and ensure that their rights and interests are protected.

Tax Implications of Spousal Support

There are tax implications associated with support payments. Spousal support payments are generally tax deductible for the paying spouse and taxable as income for the recipient spouse. It is important to take these tax implications into account when determining the appropriate amount of spousal support to be paid.

Enforcing Spousal Support – Family Responsibility Office

If spousal support payments are not made, it may be necessary to take legal action to enforce the spousal support order or agreement. This may involve obtaining a court order or other legal remedies to ensure that the paying spouse complies with their obligations.

Enforcing spouse support orders can be a complex and challenging process. The Family Responsibility Office (FRO) has the legal authority to enforce support orders under the Family Responsibility and Support Arrears Enforcement Act. Once the support order and the related support deduction order are filed with the FRO, the agency can take various measures to collect the amounts owed and pay them to the recipient.

FRO has a range of enforcement mechanisms at its disposal. These include garnishing the payor’s bank accounts, seizing money received by the payor from the government, reporting the payor to credit bureaus, suspending the payor’s driver’s license, passport, and federal licenses, placing a lien on personal property, issuing a writ for the seizure and sale of owned property, reporting the payor to professional organizations, seizing lottery winnings, and even initiating a court action resulting in jail time of up to 180 days.

It is important to note that FRO can only enforce support orders that have been filed with the office. If the support order has not been filed, the recipient may need to seek legal advice to obtain a court order for enforcement.

The Process of Setting Up Spousal Support

The process of setting up spousal support can be complex and emotional. The first step in the process is for one party to make a claim for spousal support. The party making the claim will need to provide evidence of their financial need and the other party’s ability to pay spousal support.

Once a claim for spouse support has been made, both parties will be required to provide financial disclosure. This includes providing details about their income, expenses, and assets. Financial disclosure is an important part of the spousal support process, as it helps to ensure that the amount of spousal support awarded is fair and reflects the financial circumstances of both parties. After financial disclosure has been provided, the parties may enter into negotiations to try to reach an agreement on spousal support. Negotiations can be conducted through a through mediation. In some cases, negotiations may be unsuccessful, and the parties may need to go to court to have a judge make a decision about spousal support.

When making a decision about spouse support, the court will consider a variety of factors, including the length of the marriage or common-law relationship, the income and earning capacity of both parties, and the needs of each party. The court will also consider any agreements made between the parties, as well as any evidence of misconduct or fault on the part of either party.

Once a decision about spouse support has been made, the parties will need to abide by the terms of the order or agreement. Spousal support payments are typically made on a periodic basis, such as monthly or bi-weekly, and can be reviewed or modified in certain circumstances, such as a significant change in circumstances for either party. It is important to take legal action to enforce spouse support obligations if necessary. 

In conclusion, spousal support is an important aspect of Child, Youth and Family Services Act, in Ontario that requires careful consideration of a number of factors. The spousal support advisory guidelines provide a helpful framework for determining the amount and duration of spousal support payments, but it is important to consider the specific circumstances of each case. Spousal support can be agreed upon in a separation agreement or ordered by the court, and TCZ  lawyer Eric Zhao can help navigate this complex area of law.