National Post (National Edition)

Family Law: How to know if you’re entitled to spousal support.

Children, length of relationsh­ip among factors

- LAURIE H. PAWLITZA Financial Post Laurie H. Pawlitza is a senior partner in the family law group at Torkin Manes LLP in Toronto. lpawlitza@torkinmane­s.com

Family Law

When a relationsh­ip breaks down, there are usually a number of legal issues a couple must resolve.

If they have children, or if one of the spouses has been “standing in the shoes of a parent,” there will likely be custody, access and child support issues. If the couple has property — which includes pensions, RRSPs, savings, shares, options, restricted share units, an interest in a private business or partnershi­p, or even money owed to them — there are likely property rights and obligation­s.

And if one of the spouses has been out of the workforce for a period of time or if there is an inequity in the earning power of the spouses, it is likely that spousal support is payable.

Since the mid-1980s, whether one spouse has an “entitlemen­t” to spousal support is rarely litigated. Most spousal support disputes focus on “how much” and for “how long.” In all but the shortest relationsh­ips, if there are children, entitlemen­t to spousal support is conceded. While the language of the legislatio­n differs whether the separating couple is common law or married, the general principles of governing entitlemen­t are the same.

The right to spousal support does not arise only if one spouse has unmet basic financial needs after separation. Spousal support is intended to distribute future income in a way that takes into account the economic effect of the relationsh­ip and its breakdown. The most common example of this economic effect is the unequal sharing of household labour and childcare, both before and after separation. While the legislatio­n also promotes efforts at economic self-sufficienc­y within a reasonable time, this is simply one of a number of objectives of spousal support.

The ultimate goal of spousal support is to alleviate the disadvanta­ged spouse’s economic losses as completely as possible after separation.

Economic advantages and disadvanta­ges are difficult to quantify, making spousal support one of the most difficult and discretion­ary issues for separating couples to resolve. It is such a common problem, though, that even the Supreme Court of Canada has said that “it is a rare case where spouses are able to make a ‘clean break.’”

Because spousal support can be “needs-based” “compensato­ry,” or “contractua­l,” spousal support can be payable in a myriad of different situations.

So who is entitled to spousal support when a couple separates?

There are a few rules of thumb.

First, the longer the relationsh­ip, the greater likelihood that the lower-income spouse is entitled to spousal support. the existence of young children gives rise to a longterm, continuing burden for child care. Spousal support is one of several ways that the economic disadvanta­ges are shared after separation.

Fourth, where there is significan­t income disparity between the spouses at separation, even where there are no children, there is likely an entitlemen­t to transition­al spousal support, even if the lower-income spouse maintained his income level throughout the relationsh­ip. The purpose of transition­al support is, quite simply, to transition the lower income spouse back to the pre-relationsh­ip lifestyle.

Fifth, where there is an agreement such as a cohabitati­on agreement or marriage contract that sets out the terms of spousal support, the separating couple may rely on that agreement when they separate. Contractua­l support arrangemen­ts should be approached with caution, though, as in certain circumstan­ces, these agreements can be set aside.

Once entitlemen­t to spousal support has been establishe­d, the focus of spousal support turns to how much for how long.

Because there was so much disparity in the amount of spousal support being ordered across Canada, and even amongst judicial regions in the same province, the Spousal Support Advisory Guidelines (“SSAG”) were introduced in 2008.

The SSAGs do not determine whether a separating spouse is entitled to spousal support. However, once entitlemen­t has been establishe­d or conceded, the SSAGs are intended to be used as the first calculatio­n of the monthly spousal support payment and the length of time support is expected to be paid.

While these guidelines have taken some of the pain and uncertaint­y out of the process, spousal support remains one of the most contentiou­s issues separating couples must navigate.

Newspapers in English

Newspapers from Canada