Spousal Support in Ottawa, Ontario

How Does Spousal Support Work?

Spousal support (sometimes called alimony or maintenance in jurisdictions other than Ontario) is money that one spouse pays to his or her ex, usually on a periodic basis (monthly being the most common) but sometimes in a lump sum, to financially support the ex. Not every marriage and common law relationship results in an entitlement to spousal support.

Paying or Receiving Spousal Support

Spousal support might be payable after separation whether you were married or common law. An entitlement to spousal support for a married spouse can arise under the Divorce Act even if the marriage is short. An entitlement to spousal support can arise for a common law spouse under the Family Law Act if the couple has cohabited for at least three years, or if they are the parents of a child, in which case any length of cohabitation in a relationship of some permanence could create the entitlement.

Spousal support is intended to:

  • recognize the economic consequences to each spouse arising from the marriage or cohabitation;
  • share between the spouses the economic burden of caring for children;
  • relieve financial hardship arising from the breakdown of the relationship; and
  • assist the recipient in moving toward economic self-sufficiency.

Entitlement to Spousal Support

There are three ways to establish an entitlement to spousal support.

  1. A compensatory claim is established if the recipient had an economic loss or disadvantage, or the payor received an economic benefit because of the roles adopted during the marriage. A classic example is when one parent stops working to provide unpaid care of the children and the household, enabling the other spouse to continue to pursue his or her career. Another example can arise when one party quits his or her employment in one location to move to another location to allow the other party to pursue a career opportunity in the new location. A third example sometimes arises when one party works and puts the other party through a post-secondary education, which increases that student’s earning potential.
  2. A non-compensatory claim is based on need. There could be a non-compensatory claim if the recipient is unable to meet his or her basic needs, or if there is a significant drop in the standard of living of the recipient post-separation.
  3. A contractual claim can be based on a formal domestic contract (a cohabitation agreement or marriage contract) or on an informal agreement. An informal agreement might be something like “I will support you while you attend medical school and then you will support me while I do my MBA.” If the separation happens after med school and before the MBA, there could be a contractual entitlement.

Contracting Out of Spousal Support

A couple can agree that they will not seek spousal support from each other ahead of time by entering into a cohabitation agreement or marriage contract. Read more about cohabitation agreements and marriage contracts here: https://pbslaw.ca/cohabitation-agreement-or-marriage-contract/

A separating couple can agree to waive spousal support.

Amount of Spousal Support

The length of the cohabitation or marriage, the functions performed by each spouse during the cohabitation or marriage, the incomes of the parties, the parenting and child support arrangements made after separation, and any order, agreement or arrangement relating to the support of either spouse are all relevant to the appropriate amount and duration of spousal support.

You can read more about how an entitlement to spousal support arises and what factors govern the amount and duration of spousal support by reading the Spousal Support Advisory Guidelines, here: https://www.justice.gc.ca/eng/rp-pr/fl-lf/spousal-epoux/spag/index.html and the Spousal Support Advisory Guidelines: The Revised User’s Guide, here: https://www.justice.gc.ca/eng/rp-pr/fl-lf/spousal-epoux/ug_a1-gu_a1/ The SSAGs carry great weight in Ontario. In many cases, if there is entitlement to spousal support, the amount (usually monthly) and duration (how long spousal support continues after separation) of spousal support will be within the ranges set out in the SSAGs.

A court will often make an order for spousal support to equalize the Net Disposable Income (NDI) of each parent, where parenting time is shared fairly equally. This kind of order is often made so that the children experience roughly the same standard of living in each parent’s home.

Taxation of Spousal Support

Generally, periodic payments of spousal support need to be included in the recipient’s income and are subject to income tax. Generally, the payor will be able to deduct the periodic support paid from his or her income for the purposes of calculating income tax. Different rules apply to lump sum payments of spousal support, and you should seek legal and/or accounting advice about your particular situation.

Disclaimer

I am an Ontario lawyer practising in the Kanata suburb of Ottawa. Different laws may apply if either party resides outside of Ontario. Even for residents of Ontario, this blogpost contains general legal information. You should seek legal advice about your specific situation.

Questions?

If you have questions about any of our services, PBS Law is here to help. Our experienced family law team in Kanata will guide you through the process, ensuring your rights and interests are protected. We’ll work closely with you to create a fair and legally sound agreement tailored to your unique needs. Contact PBS Law today to schedule a consultation and gain peace of mind as you plan your future together.

Patricia B. Simpson Professional Corporation

1000 Innovation Drive
5th Floor, Kanata, ON, K2K 3E7
Email: psimpson@pbslaw.ca
​Phone: 613.287.0790 (direct)