Spousal Support

In Alberta and Canada we use the term spousal support (“support”) which has previously been referred to as alimony or maintenance. Spousal support entails one spouse paying the other spouse after separating, in either monthly-periodic, or lump sum payments.

The determination for entitlement of spousal support is the starting point for determining payments for spousal support. Entitlement to spousal support is not automatic in all marriages, rather it requires analysis to determine whether a person does have entitlement.

Entitlement to spousal support can be determined under three heads of entitlement:

• Compensatory support;
• Non-compensatory / needs based support; and
• Contractual obligations.

Entitlement to compensatory support can be based on sacrifices, lost opportunities or direct contributions.  Essential to this analysis is the impact to one party of the relationship, and potential outcomes if decisions in relationship hat not occurred.   It is important that there is as direct of a nexus as possible drawn between the historical decisions for a couple the the financial implications of these decisions to one party.

Second, non-compensatory / needs based support is based on the immediate situation of a party as a result of the breakdown of the marriage. In this case the standard of living between the parties is important to take note of as part of the calculations for spousal support.

Third, parties may have entered into a contractual obligation for spousal support to be paid in the form of a cohabitation, prenuptial or post-nuptial agreement.   

Following the determination for entitlement to support, the calculation of quantum and duration of support is required as a second step.  The calculation of quantum of support entails calculations specific to a person’s holistic financial picture.     In family law when completing these calculations we including analysis of employment type, sources of income, and review of household expenses, among other factors.  

Further, calculation of duration will depend on the length of cohabitation and marriage of parties, and the age of the parties when they separated.  These can have profound impacts on the calculation of spousal support.  As such, parties should be fully informed at the outset as to how their situation fits into calculations for spousal support. 

To assist in the calculation of spousal support, in Canada the Spousal Support Advisory Guidelines were adopted in 2008.  These guidelines are widely used in the analysis of calculating support. It should be noted that unlike the Child Support Guidelines, these are not mandatory and in turn are used with more discretion.   However, the Spousal Support Advisory Guidelines cannot be discounted and need to be considered by parties when calculating spousal support. 

Finally, it s very important that spousal support is carefully structured to ensure that the applicable taxable benefits are factored in and received by individuals.  It can be extremely frustrating if payments of spousal support are not appropriately accounted for creating substantial financial burden on the payor.

At Family Central Law we advance claims for individuals seeking support and we work with clients when support has been requested from them. Kindly contact our office to obtain specialized advise and  that is tailored to your circumstances. For a free consultation kindly call our office at 1-866-278-4187, or email info@familycentrallaw.com, or click on our consultation page. 

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