Difference between revisions of "Spousal Support"

Jump to navigation Jump to search
73 bytes removed ,  22:26, 17 April 2013
m
no edit summary
m
m
Line 7: Line 7:
Spousal support is a payment made by one spouse, the ''payor'', to the other spouse, the ''recipient'', to help with his or her day-to-day living expenses or to compensate the recipient for the financial choices the spouses made during the relationship. Although anyone who was in a married or unmarried spousal relationship can ''apply'' for spousal support, it's important to know that there is no automatic ''right'' to receive support just because of the relationship. Whether spousal support will be paid, and, if so, how much will be paid, always depends on the particular circumstances of each couple.
Spousal support is a payment made by one spouse, the ''payor'', to the other spouse, the ''recipient'', to help with his or her day-to-day living expenses or to compensate the recipient for the financial choices the spouses made during the relationship. Although anyone who was in a married or unmarried spousal relationship can ''apply'' for spousal support, it's important to know that there is no automatic ''right'' to receive support just because of the relationship. Whether spousal support will be paid, and, if so, how much will be paid, always depends on the particular circumstances of each couple.


This section provides an introduction to the law on spousal support. The other sections in this chapter explore issues about spousal support in more detail, including the Spousal Support Advisory Guidelines.  
This section provides an introduction to the law on spousal support. It also looks at what happens when a potential recipient applies for social assistance, and reviews the income tax consequences of spousal support payments.


This page also looks at what happens when a potential recipient applies for social assistance and reviews the income tax consequences of spousal support payments.
The other sections in this chapter explore issues about spousal support in more detail, including the Spousal Support Advisory Guidelines.


==An introduction to spousal support==
==An introduction to spousal support==


Spousal support is paid for one of two reasons, either to help cover the recipient's living expenses and help the recipient get by as a single person without the benefit of the payor's income and other household contributions, or to compensate the recipient for financial decisions made by the spouses during their relationship.
Spousal support is paid for one of two reasons: to help the recipient get by as a single person without the benefit of the payor's income and other household contributions; or to compensate the recipient for financial decisions made by the spouses during their relationship.


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.
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.
Line 21: Line 21:
<blockquote>"A person does not acquire a lifetime pension as a result of marriage. Likewise, marriage is not an insurance policy."</blockquote>
<blockquote>"A person does not acquire a lifetime pension as a result of marriage. Likewise, marriage is not an insurance policy."</blockquote>


A spouse who is self-sufficient, or readily capable of becoming self-sufficient, at the end of a relationship will not usually be entitled to receive spousal support.
A spouse who is self-sufficient, or readily capable of becoming self-sufficient, will not usually be entitled to receive spousal support at the end of a relationship .


==The law==
==The law==
Line 32: Line 32:
#former spouses.
#former spouses.


(Incidentally, the law in British Columbia doesn't talk about people who are ''common-law spouses'' and never has. Once upon a time, people could marry each other and create a legal relationship simply by agreeing to marry, without getting a licence from the government or having a particular kind of ceremony. Because the rights between the spouses came from common law principles, these were known as ''common-law'' marriages. Common-law marriages were valid in England until the ''Marriage Act'' of 1753, better known by its full flowery name, ''An Act for the Better Preventing of Clandestine Marriage''. Please don't use this term. It doesn't mean what most people think it means and is two and a half centuries out of date.)
(Incidentally, the law in British Columbia doesn't talk about people who are ''common-law spouses'' and never has. Once upon a time, people could marry each other and create a legal relationship simply by agreeing to marry, without getting a licence from the government or having a particular kind of ceremony. Because the rights between the spouses came from common law principles, these were known as ''common-law'' marriages. Common-law marriages were valid in England until the ''Marriage Act'' of 1753, better known by its full flowery name, ''An Act for the Better Preventing of Clandestine Marriage''. Please don't use the term, common-law marriage. It doesn't mean what most people think it means and is two and-a-half centuries out of date.)


Spousal support is available for all spouses, whether of the same or opposite sexes, and can be required by a court order or agreed to by a separation agreement.
Spousal support is available for all spouses, whether of the same or opposite sexes, and can be required by a court order or agreed to by a separation agreement.
Line 40: Line 40:
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.


*'''Length of marriage:''' The longer the relationship, the more likely it is that an order for spousal support will be made. As well, the longer the relationship is, the stronger will be the presumption will be that the parties should have an equal or almost equal standard of living at its conclusion.
*'''Length of marriage:''' The longer the relationship, the more likely it is that an order for spousal support will be made. As well, the longer the relationship is, the stronger the presumption will be that the parties should have an equal or almost equal standard of living at its conclusion.
*'''Difference in incomes:''' The greater the difference in income between the parties is at the end of a relationship, the more likely it is that an order for spousal support will be made, even if the support will only be paid for a short period of time.
*'''Difference in incomes:''' The greater the difference in income between the parties is at the end of a relationship, the more likely it is that an order for spousal support will be made, even if the support will only be paid for a short period of time.
*'''Economic disadvantage:''' The more economic opportunities a spouse has lost as result of the relationship, such as job skills, job opportunities, raises and promotions, or employability, the more likely it is that an order for spousal support will be made.
*'''Economic disadvantage:''' The more economic opportunities a spouse has lost as result of the relationship, such as job skills, job opportunities, raises and promotions, or employability, the more likely it is that an order for spousal support will be made.
Line 47: Line 47:
===Amount of support payments===
===Amount of support payments===


Once a spouse has established that he or she has an entitlement to receive spousal support, the question becomes how much support the spouse ought to get. Generally speaking, the amount of an order for spousal support is calculated by looking at the disposable income of the payor and the reasonable needs of the recipient. If a payor has a gross income of, say, $2,000 per month, and of that money $1,500 is spent on taxes, child support, housing costs, utilities and other basic living expenses, the payor's disposable income will be $500 per month. Spousal support will usually be paid out of that remaining $500 per month if it's payable at all. Although spouses usually share in the financial consequences of the end of their relationship, the court will not force someone into bankruptcy to provide support for the other spouse, although there certainly are times when a support order will result in the payor racking up debt.
Once a spouse has established that he or she is entitled to receive spousal support, the question becomes how much support the spouse ought to get.  


The amount of spousal support payments is now generally calculated using the [[Spousal Support Advisory Guidelines]]. The Advisory Guidelines is an academic paper released by the federal Department of Justice which describes a number of mathematical formulas which calculate the amount of spousal support payments based on each person's income, the length of their relationship and the age of their children, and other factors.
Generally speaking, the amount of an order for spousal support is calculated by looking at the disposable income of the payor and the reasonable needs of the recipient. If a payor has a gross income of, say, $2,000 per month, and of that money $1,500 is spent on taxes, child support, housing costs, utilities and other basic living expenses, the payor's disposable income will be $500 per month. Spousal support will usually be paid out of that remaining $500 per month if it's payable at all. Although spouses usually share in the financial consequences of the end of their relationship, the court will not force someone into bankruptcy to provide support for the other spouse, although there certainly are times when a support order will result in the payor racking up debt.


Sometimes there is simply not enough money coming in to cover child support, the payor's day-to-day needs and the day-to-day needs of the recipient. In cases like that, both the ''[[Divorce Act]]'' and the ''[[Family Law Act]]'' require child support to take priority over spousal support, and the amount of spousal support paid simply may not suffice to cover the recipient's needs.
The amount of spousal support payments is now generally calculated using the [[Spousal Support Advisory Guidelines]]. The Advisory Guidelines is an academic paper released by the federal Department of Justice which describes a number of mathematical formulas that calculate the amount of spousal support payments based on each person's income, the length of their relationship and the age of their children, and other factors.
 
Sometimes there is simply not enough money coming in to cover child support, the payor's day-to-day needs, and the day-to-day needs of the recipient. In cases like that, both the ''[[Divorce Act]]'' and the ''[[Family Law Act]]'' require child support to take priority over spousal support, and the amount of spousal support paid simply may not suffice to cover the recipient's needs.


===Duration of support payments===
===Duration of support payments===


Once a spouse's entitlement to receive spousal support is established and the amount of support payments has been fixed, the next step is to look at is the length of time for which the support payments should be made. For people leaving long relationships, spousal support might be paid permanently or until retirement. For people in shorter relationships, particularly where the recipient is either working outside the home or capable of working outside the home, support might only be payable for a fixed length of time.
Once a spouse's entitlement to receive spousal support is established and the amount of support payments has been fixed, the next step is to look at the length of time for which the support payments should be made. For people leaving long relationships, spousal support might be paid permanently or until retirement. For people in shorter relationships, particularly where the recipient is either working outside the home or capable of working outside the home, support might only be payable for a fixed length of time.


There are a number of different ways that an order or agreement for spousal support can deal with the issue of time.
There are a number of different ways that an order or agreement for spousal support can deal with the issue of time.


*'''Lump sum payments:''' Instead of on-going monthly payments, it can sometimes be better to pay a single lump sum for all of these support payments made at once. Of course, the payor has to be able to pay a lump sum like that, and not everyone can.
*'''Lump sum payments:''' Instead of ongoing monthly payments, it can sometimes be better to pay a single lump sum for all of the support payments. Of course, the payor has to be able to pay a lump sum like that, and not everyone can.
*'''Division of property:''' It is possible that the way the family property and family debt is divided could satisfy the goal of a spousal support order. It's also possible that a payor could agree to give the recipient more of the family property in order to avoid a spousal support obligation.
*'''Division of property:''' It is possible that the way the family property and family debt is divided could satisfy the goal of a spousal support order. It's also possible that a payor could agree to give the recipient more of the family property in order to avoid a spousal support obligation.
*'''Review dates:''' An order or agreement can say that when a certain date or event arrives, the amount of spousal support or the recipient's entitlement to receive support will be ''reviewed''. This is sometimes easier to accept than a fixed date on which support will terminate, but it does mean that the parties will have to argue about the issue in the future. Again.
*'''Review dates:''' An order or agreement can say that when a certain date or event arrives, the amount of spousal support or the recipient's entitlement to receive support will be ''reviewed''. This is sometimes easier to accept than a fixed date on which support will terminate, but it does mean that the parties will have to argue about the issue in the future. Again.
Line 68: Line 70:
===Changing spousal support===
===Changing spousal support===


It is almost always possible to apply to change an order for spousal support or to renegotiate an separation agreement that requires the payment of spousal support, as long as there has been a change in circumstances since the order or agreement was made.
It is almost always possible to apply to change an order for spousal support or to renegotiate a separation agreement that requires the payment of spousal support, as long as there has been a change in circumstances since the order or agreement was made.


Recipients might want to change an order or an agreement if:
Recipients might want to change an order or an agreement if:
2,443

edits

Navigation menu