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Difference between revisions of "Changing Family Law Orders, Awards and Agreements Involving Spousal Support"
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Changing Family Law Orders, Awards and Agreements Involving Spousal Support (view source)
Revision as of 16:19, 16 May 2019
, 16:19, 16 May 2019→Retirement
David Dundee (talk | contribs) |
David Dundee (talk | contribs) |
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The danger lies in just assuming the court will vary spousal support when you retire. Too many paying spouses make this assumption, retire, and then are astounded when the court does not reduce support. Why would this happen? Well, it depends on a few things: | The danger lies in just assuming the court will vary spousal support when you retire. Too many paying spouses make this assumption, retire, and then are astounded when the court does not reduce support. Why would this happen? Well, it depends on a few things: | ||
*First, does the paying spouse have to retire (ie mandatory retirement, or it is medically necessary)? In these circumstances, the court is most likely to grant some relief. | *First, does the paying spouse have to retire (ie mandatory retirement, or it is medically necessary)? In these circumstances, the court is most likely to grant some relief. | ||
*Second, how would this affect the receiving spouse? Can | *Second, how would this affect the receiving spouse? Can they also retire? It is one thing if the receiving spouse still has a good job, or also has, or will have retirement income. In either event, perhaps spousal support is no longer necessary or appropriate. Such may be the case where, for example, the paying spouse’s pension was divided, and they will both in effect be retiring at the same time. | ||
*On the other hand, if the receiving spouse is not working or cannot yet retire, or is otherwise still dependent on that spousal support cheque, cutting off support may leave | *On the other hand, if the receiving spouse is not working or cannot yet retire, or is otherwise still dependent on that spousal support cheque, cutting off support may leave them in trouble, financially. This can happen where, for example, the paying spouse wants to take early retirement. It can even happen where the paying spouse wants to retire at the usual age – 65 – but the receiving spouse is much younger. The paying spouse might have to retire later. The court can’t force the paying spouse to continue working, but it can refuse to reduce support until the receiving spouse is able to retire also. | ||
*Finally, when the paying spouse retires, will | *Finally, when the paying spouse retires, will they have other sources of income? Perhaps they have another job lined up, or intend to go into business for themselves. This extra income will certainly affect the calculations. | ||
If a pension has been divided, you should also check the order or agreement that divides it. Sometimes, there are limitations on when the pension holder can take retirement. Early retirement may not be allowed, for example, as it often results in less pension income – for both parties. | If a pension has been divided, you should also check the order or agreement that divides it. Sometimes, there are limitations on when the pension holder can take retirement. Early retirement may not be allowed, for example, as it often results in less pension income – for both parties. | ||
Also be wary of orders or agreements that say spousal support may be reviewed on the retirement of the paying spouse. As we say | Also be wary of orders or agreements that say spousal support may be reviewed on the retirement of the paying spouse. As we say above, reviewing is not the same as changing – and certainly not the same as terminating. | ||
In most cases, if retirement is an issue, the parties will be best | In most cases, if retirement is an issue, the parties will be best advised to negotiate or mediate a solution, or to apply to court, ''before'' they have made any irrevocable changes in their employment. | ||
==Remarriage== | ==Remarriage== | ||