Spousal Support -Indexing in Family Law
Introduction
The Family Law Act provides mechanisms to ensure that this support is fair and sustainable, one of these being spousal support indexing. This blog post will delve into the concept of spousal support indexing, its legal basis, and a practical example of how it is calculated.
Legal Basis for Spousal Support Indexing
Spousal support indexing is legally grounded in section 34(5) and (6) of the Family Law Act, R.S.O. 1990, c. F.3. It stipulates that the court has the power to order that spousal support be increased annually on the order's anniversary date by the indexing factor. This factor represents the percentage change in the Consumer Price Index (CPI) for Canada for prices of all items since the same month of the previous year, as published by Statistics Canada. This indexing ensures that the support keeps pace with inflation, also known as a cost of living adjustment.
Application of Spousal Support Indexing
The application of spousal support indexing is not restricted to the Family Law Act. Orders for support made under the Divorce Act, R.S.C. 1985 (2nd Supp.), c. 3, may also be indexed, as seen in the case of Linton v. Linton, [1990] O.J. No. 2267 (C.A.). A typical Order for indexing might read as follows: (1)Child/Spousal Support shall be indexed annually in accordance with s. 34(5) of the Family Law Act.
An Example of Calculating Spousal Support Indexing
To paint a clearer picture, consider this example. Suppose support was ordered on Nov. 1, 2010, at $1,000 per month. If the Consumer Price Index for Nov. 2011 is 1.3%, this translates to an increase of $13.00 (1.3% of $1,000). Therefore, the support payable from Nov. 1, 2011, through Oct. 1, 2012, becomes $1,013. If the Consumer Price Index for Nov. 2012 is 1.8%, this results in an increase of $18.23 (1.8% of $1,013).
Conclusion
Spousal support indexing is a crucial legal mechanism in family law that ensures that spousal support maintains its value in real terms, despite inflation. By tying the support to the Consumer Price Index, it ensures that the recipient continues to receive support that meets their needs without necessitating future variation applications. Understanding how it works can help both payers and recipients plan more effectively for the future.
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