Spousal Support: Quantum, Duration, and Lump-Sum Payments
When navigating a divorce or separation, understanding the intricacies of spousal support is crucial. Here, we'll delve into the concept of 'Quantum' and the structure of spousal support orders, including temporary orders and lump-sum payments.
Quantum of Spousal Support
The quantum of spousal support refers to the amount to be paid. Both the Divorce Act (DA) and the Family Law Act (FLA) of Canada do not provide specific guidelines about the quantum of spousal support. Instead, the determination of the amount relies heavily on the parties' financial disclosures and budgets that show their current needs and spending patterns.
The standard of living during the marriage plays a significant role in determining the appropriate level of support. It's important to note that the payor spouse's means may limit their ability to replicate the pre-separation standard of living in both households. In some instances, courts may impute income to a payor spouse, or a recipient spouse, based on evidence. Some courts even use income calculations from child support guidelines to determine income for spousal support purposes.
Structure of Spousal Support Orders
Spousal support orders can be indefinite, time-limited, or subject to review. Most cases result in an indefinite order that is subject to variation if a material change of circumstances occurs. Courts avoid speculating that a recipient spouse will be financially independent within a specific time. However, they may order a time limit after a short-term marriage where there is clear evidence that the spouse receiving support will find employment within a known timeframe.
Under the DA, a court can order that spousal support be subject to review after a fixed period without the need to prove a material change of circumstances. This provision is limited to situations where there is genuine and material uncertainty at the time of the initial decision.
Temporary Orders and Agreements
A spouse may require temporary relief pending the final determination of a support claim. The payor spouse may be willing to make voluntary payment of spousal support but need tax relief. In such cases, the parties may wish to obtain a temporary order or enter into an interim agreement. Temporary support is based on need and the ability to pay. The standard for temporary support allows the dependent spouse to live in reasonable comfort in accordance with the parties’ means.
Lump-Sum Spousal Support
In some cases, if sufficient resources are available, a lump-sum spousal support award may be issued. This has the advantage of permitting the parties to have a clean break. A lump sum may also be appropriate if there's a high risk of default by the payor spouse or after a short-term marriage. It's important to note that lump-sum spousal support is not taxable in the recipient’s hands or tax deductible to the payor.
Understanding these aspects of spousal support can provide clarity and guidance during what can be a complex and challenging process. As always, it's crucial to consult with a legal professional to ensure a thorough understanding of the potential implications and consequences.
The Content is offered free of charge strictly on an "as is" basis and is intended to provide users with general information only. Lailna Dhaliwal LLP does not warrant or guarantee the accuracy, completeness or fitness of the Content for any particular purpose.
The material provided on the Lailna Dhaliwal LLP/JSDLAW PC website is not intended to provide legal advice or opinions of any kind, and does not constitute legal advice.
No one should act, or refrain from acting, based solely upon the materials provided on this website, without first seeking appropriate legal or other professional advice.
Sending or receiving of these materials does not create a lawyer-client relationship.
Do not provide any confidential information to Lailna Dhaliwal LLP unless and until we have given you a written retainer agreement confirming that we can represent you.