7,366
edits
Difference between revisions of "Spousal Support"
Jump to navigation
Jump to search
no edit summary
Nate Russell (talk | contribs) |
Nate Russell (talk | contribs) |
||
| Line 46: | Line 46: | ||
There are some — though limited — circumstances where the limitation period can be extended, including where the parties enter into formal ''[[Family_Law_Act_Basics#Out-of-court_processes | family dispute resolution]]'' as defined in the ''Family Law Act'', or where the paying spouse acts or speaks in such a way as to lead the recipient spouse to believe that the limitation period will not be relied on. | There are some — though limited — circumstances where the limitation period can be extended, including where the parties enter into formal ''[[Family_Law_Act_Basics#Out-of-court_processes | family dispute resolution]]'' as defined in the ''Family Law Act'', or where the paying spouse acts or speaks in such a way as to lead the recipient spouse to believe that the limitation period will not be relied on. | ||
===Establishing an entitlement to support=== | |||
Spousal support is paid for one of two reasons: | |||
#to help the recipient maintain or approximate the marital standard of living after separation, or | |||
#to compensate the recipient for financial decisions made by the spouses during their relationship. | |||
The first type is usually call ''needs-based support.'' The second is called ''compensatory support.'' | |||
Of course, some reduction in the marital standard of living is inevitable. No matter if one spouse was working during the relationship or both worked, the fact is that during the relationship there was only one mortgage payment to make, only one hydro bill and only one cable bill. After the relationship ends, there are two rent payments, two hydro bills and two sets of groceries to buy, all of which must be paid out of the same pool of income that supported the family before separation. | |||
There is no automatic obligation to pay spousal support the way there is for child support. As a result, the entitlement of a spouse to receive spousal support will be decided on the particular circumstances of that person and his or her relationship with the other spouse. In general, the court will take into consideration the following factors, among many others. | There is no automatic obligation to pay spousal support the way there is for child support. As a result, the entitlement of a spouse to receive spousal support will be decided on the particular circumstances of that person and his or her relationship with the other spouse. In general, the court will take into consideration the following factors, among many others. | ||
| Line 137: | Line 144: | ||
*'''Separation Agreements:''' In addition to a term describing a fixed, periodic sum as "spousal support", the agreement must also state that the parties have been separated since a certain date and intend to continue to live separate from each other. Payments for child support and spousal support should never be expressed as a single amount. | *'''Separation Agreements:''' In addition to a term describing a fixed, periodic sum as "spousal support", the agreement must also state that the parties have been separated since a certain date and intend to continue to live separate from each other. Payments for child support and spousal support should never be expressed as a single amount. | ||
*'''Unwritten Agreements:''' In general, the tax man will not recognize anything other than a written separation agreement or a court order. There are some exceptions to this rule, but you really should arrange your support payments in a formal fashion. | *'''Unwritten Agreements:''' In general, the tax man will not recognize anything other than a written separation agreement or a court order. There are some exceptions to this rule, but you really should arrange your support payments in a formal fashion. | ||
===Changing source deductions=== | |||
You do not have to wait for tax time. You can arrange through your payroll department and the [http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/spprtpymnts/ddctn-eng.html Canada Revenue Agency] for approval of an adjustment to your source deductions for income tax, so your new take-home pay reflects both the payment of spousal support and the deduction for tax purposes. | |||
===Avoiding unexpected taxes=== | ===Avoiding unexpected taxes=== | ||
| Line 164: | Line 174: | ||
To claim these deductions, the lawyer must write a letter to the CRA setting out what portion of his or her fees were attributable to advancing a spousal support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case. It may be impossible to winnow out the portions of an account spent on spousal support after the fact. | To claim these deductions, the lawyer must write a letter to the CRA setting out what portion of his or her fees were attributable to advancing a spousal support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case. It may be impossible to winnow out the portions of an account spent on spousal support after the fact. | ||
===Spousal support and death=== | |||
As a general rule, if the payor dies support ends. Under the ''Family Law Act'', however, a recipient spouse may apply to have support continue, to be paid by the estate of the deceased spouse. Section 171 lists the factors for the court to consider: | |||
*the need of the recipient, | |||
*the size of the estate, | |||
*the claims of estate creditors or beneficiaries, and | |||
*that no other practical means exist to meet the need of the recipient. (For example, life insurance would usually be a preferable means of securing the recipient, but it is not always available or affordable.) | |||
There is no limitation period to apply for continuation, but as a practical matter, the recipient would have to apply soon. Otherwise, he or she risks the estate being wound up and paid out. | |||
If the support order already provided for support to continue past the death of the payor, his or her estate can apply to have the support reduced or ended. | |||
If the recipient dies, obviously support ends. But what if there were arrears owing? Does the estate of the recipient get to collect them? The answer is not always clear. It seems to depend in part on whether the recipient had been actively pursuing them, or whether he or she had spent his or her own savings (estate) to make up the difference. | |||
==Resources and links== | ==Resources and links== | ||
| Line 189: | Line 212: | ||
{{REVIEWED | reviewer = [[ | {{REVIEWED | reviewer = [[David Dundee]], March 26, 2015}} | ||
{{JP Boyd on Family Law Navbox|type=chapters}} | {{JP Boyd on Family Law Navbox|type=chapters}} | ||