Securing Ongoing Support Payments in Family Law

Introduction

Family law often involves the delicate process of ensuring the financial stability of dependents following a separation or divorce. One aspect of maintaining this stability is securing ongoing support payments. If not properly secured, these payments may cease unexpectedly, leaving the dependent party in a precarious financial situation.

The Purpose of Security for Support Payments

The primary objective of securing ongoing support payments is to mitigate risk. Without some form of security, there is a chance that the payor could predecease the recipient, causing an abrupt halt to the support. This could occur while the recipient still has a valid claim or need for these payments. By having a secure plan in place, it ensures that the recipient will not be left in a lurch should the payor pass away. The security serves to protect the recipient's interests, ensuring they are compensated for their outstanding claim.

The Role of Life Insurance

Life insurance plays a significant role in this security plan. The payor may designate the recipient as an irrevocable beneficiary on their life insurance policy for as long as the support is to be paid. This means that upon the payor's death, the recipient is entitled to the proceeds of the life insurance policy. This provides a financial safety net, ensuring that funds will be available to the recipient even after the payor's demise.

Statutory Authority for Securing Support Payments

Under Section 34 of the Family Law Act, R.S.O. 1990, c. F.3, the court has the jurisdiction to order several measures to secure support payments. These measures range from requiring periodic payments, transferring property to the dependent, and requiring that the money payable be paid into court or to another suitable person or agency for the dependent's benefit. It also includes the option for a spouse to irrevocably designate the other spouse or a child as the beneficiary of a life insurance policy. Section 34 of the Family Law Act, R.S.O. 1990, c. F.3, provides the court with the jurisdiction to make temporary or final orders:

1. requiring that an amount be paid periodically, whether annually or otherwise and whether for an indefinite or limited period, or until the happening of a specified event;

2. requiring that a lump sum be paid or held in trust;

3. requiring that property be transferred to or in trust for or vested in the dependant, whether absolutely, for life or for a term of years;

4. respecting any matter authorized to be ordered under clause 24 (1) (a), (b), (c), (d) or (e) (matrimonial home);

5. requiring that some or all of the money payable under the order be paid into court or to another appropriate person or agency for the dependant’s benefit;

6. requiring that support be paid in respect of any period before the date of the order;

7. requiring payment to an agency referred to in s. 33(3) of an amount in reimbursement for a benefit or assistance referred to in that subsection, including a benefit or assistance provided before the date of the order;

8. requiring payment of expenses in respect of a child’s prenatal care and birth;

9. requiring that a spouse who has a policy of life insurance as defined under the Insurance Act, R.S.O. 1990, c. I.8, designate the other spouse or a child as the beneficiary irrevocably;

10. requiring that a spouse who has an interest in a pension plan or other benefit plan designate the other spouse or a child as beneficiary under the plan and not change that designation; and

11. requiring the securing of payment under the order, by a charge on property or otherwise.

Conclusion

Securing ongoing support payments is a crucial aspect of family law that ensures the financial stability of dependents in the event of a separation or divorce. It provides a safety net for the recipient, mitigating the risk of the payor's premature death. The critical role of life insurance and the statutory authority under the Family Law Act provide the necessary mechanisms to safeguard these payments, offering peace of mind to all parties involved.

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