Chapter 9 - Spousal Support Flashcards

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1
Q

Three elements of a spousal support analysis?

A

1) Entitlement
2) Duration
3) Amount

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2
Q

What are the two approaches to spousal support?

A

1) The compensatory approach: The theoretical foundation here is the “independent/ clean break” model: spousal support is compensatory and each party to the union is independent. This is the primary basis for support: compensation for “foregone careers and missed opportunities”
2) The non-compensatory approach: The theoretical foundation here is the “mutual obligation” model: marriage is all about interdependence and the spouses have mutual obligations to each other that can continue to exist even after the breakdown of the marriage.

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3
Q

What happened in Pelech?

A

This was a 15 year marriage and the wife had a mental health disease. The husband made periodic payments totallying $28k in support of his support obligations pursuant to a settlement agreement. Sixteen years after the marriage he was worth $1.8million and she was on social assistance. Social assistance made her sue him for more money. The TJ ordered more money, but both the CA and SCC said spousal supported had ended.

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4
Q

What are the facts of Moge v. Moge (1992 SCC)?

A

The parties had been married in Poland before they arrived in Manitoba. Throughout their 16-year marriage the husband worked full-time outside the home, making no contribution to the work of the household or the care of the children. The wife had been a full-time homemaker, caring for the couple’s three children, and had also worked in the evenings, cleaning offices, to supplement her husband’s income. After the parties separated in 1973, the wife was awarded child and spousal support. In 1989, Mr. Moge applied to vary or terminate his support obligations to his wife. Mrs. Moge was then 55 years old, working part-time cleaning offices, and none of the children were eligible for child support. The variation was successful, but Ms. Moge appealed the decision. The SCC agreed with Ms. Moge and the court ordered spousal support payments.

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5
Q

What is the “Clean Break Theory”?

A

The Pelech trilogy has been seen as an advocate for the “clean break” theory of spousal support: that spouses should be encouraged to sever their relationships as soon as possible and such agreements will be respected by courts.

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6
Q

What is self-sufficiency?

A

Self-sufficiency is a relative concept. The starting point is that spousal support should be indefinite until self-sufficiency is achieved. This starting point is based on Dubé’s “feminization of poverty” analysis from Moge.

The ability to achieve self-sufficienty must be considered a realistically. A minimum wage job doesn’t necessarily get you there. The standard must be comparable to that achieved in the marriage.

Moge

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7
Q

What approach to spousal support does Moge use?

A

The compensatory approach. This approach considers the non-monetary contributions made by the wife during marriage and the subsequent disadvantage in employment she suffers post marriage breakdown.

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8
Q

According to Bracklaw v Bracklaw (1999 SCC), what are the three bases for entitlement to spousal support?

A

1) Compensation for hardship or lost opportunities due to marriage or its breakdown
2) To fulfill a contractual agreement, express or otherwise implied
3) On a non compensatory basis, to assist a spouse in need.

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9
Q

What are the facts of Bracklow v. Bracklow (1999 SCC)?

A

Wife was an accountant, with two children from a previous relationship, and husband was a mechanic. Cohabitation began in 1985, married in 1989, separation in 1992, divorce 1995. Before the breakdown of the marriage, they functioned as a family and shared expenses evenly.

The wife became ill in 1988 and couldn’t work full time anymore. Her condition got progressively worse, and by 1991, she was admitted to the hospital for psychiatric problems. She is unlikely to work again.

The husband re-married and makes $3700 per month with household expenses of $2200 per month. Initially, the husband agreed to pay $200 per month, but he stopped making the payments almost immediately. Mrs. Bracklow receives $787 per month in disability and lives in subsidized housing. She received a subsequent order for $400, but the trial judge terminated support in 1996. The Appeal court dismissed the appellant’s case.

SCC allowed the appeal and ordered the matter back to trial for quantum. The court commented on the issue of support to a former spouse who is unable to be self-sufficient by reason of disability:

It was evident that, by the end of the relationship, Mr. B covered Mrs. B’s needs in the early stages of her illness. Accordingly, it follows that divorce did in fact render her in a state of economic hardship. The court concludes that she is eligible for support based on the length of cohabitation, the hardship that marriage breakdown imposed on her, her palpable need, and Mr. B’s financial ability to pay.

Divorce Act directs you to look at “hardship created by breakdown of the marriage”.

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10
Q

What does Bracklow say about measuring the quantum of an award?

A

Two factors for measuring quantum include the (1) need, and (2) length of the marriage. The same factors that determine entitlement will affect the amount and duration. Needs and means do not necessarily drive quantum.

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11
Q

What are the facts of Leskun v. Leskun (2006 SCC)?

A

The husband was getting an MBA and so his wife cashed her RRSPs to support the both of them. The wife hurt her back in ‘95 and was laid off four years later. Around the time she was laid off the two parties separated. The previous several years the husband had been cheating on his wife.

The original order required $2250/mth in spousal support until Ms. Leskun could return to full employment. The husband sought discontinuation of support on the grounds that she should be self-sufficient by now.

The TJ denied the application and suggested Mr. Leskun’s conduct left the wife emotionally damaged and that this contributed to her inability to find work. The SCC also dismissed the husband’s appeal.

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12
Q

Why is Leskun v. Leskun important?

A

It clarifies that while spousal misconduct in itself is irrelevant when considering child support, the emotional consequences arising from that misconduct are releant considerations. Ms. Leskun’s problems arose from her emotional state, which is tied to the way the marriage breakdown happened. As a result of her emotional state she was still not self-sufficent and the court denied the husband’s request for termination.

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13
Q

When can a court vary spousal support agreements?

A

Courts should only intervene to vary a spousal support settlement if (1) there is a radical and unforeseen change in circumstances, and (2) this change is causally connected to the roles adopted during the marriage [causal connection doctrine]

**Pelech **

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14
Q

How is alimony different from maintenaince?

A

Alimony is spousal support when couples are separated. Maintenance is spousal support when couples are divorced.

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15
Q

If there is no contractual or compensatory reasons for suppoert, can support be ordered based on another ground?

A

Yes, support can be non-compensatory and unrelated to the roles adopted in the marriage (Bracklow v Bracklow).

This arises out of idea that one of the bases social obligations of marriage is a promise of mutual support. Court cautions that marriage does not equal entitlement, but it can flow from fact that someone who used to enjoy access to spouse’s income and means now cannot do so. Need and ability to pay might be enough.

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16
Q

What is the relevance of spousal misconduct to spousal support?

A

Spousal misconduct is irrelevant but the consequences are relevant if it affects the other spouses’ ability to become self-sufficient. Difference b/w misconduct (not relevant) and consequences of misconduct. (Leskun v Leskun, SCC)

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17
Q

Can a paying spouse be required to maintain life insurance of a certain value, designating the receiving spouse as the recipient for continued spousal support after the payor’s death?

A

Yes: Taylor v. Taylor NSCA, 1992.

18
Q

How do you get spousal support?

A

1) Agreement: form written or informal
2) Agreement incorporated in consent order or a Corolloyr Relief Judgment. Remmeber, every divorce creates TWO orders: order divorcing spouses, and a corollory relief order that incorporates terms of a separation agreement.
3) Order after trial.

19
Q

If you have a support agreement and you want to change the amount of support, is that a variation under s.17 of the Divorce Act?

A

No. That’s an initial application under s.15.2 of the Divorce Act. S.17 does not refer to agreements, only orders.

20
Q

What are the four objectives of spousal support?

A

15.2(6) of DA
1) Economic advantages and disadvantages
Those arising from the marriage or its breakdown – feminization of poverty

2) Apportion financial consequences of children

3) Relieve economic hardship
This is hardship arising from the marriage or its breakdown

4) Promote self-sufficiency
Qualified – in so far as practical, promote self-sufficiency of both spouses within a reasonable period of time

21
Q

What happened in MacIsaac v. MacIsaac?

A

This was a long marriage. In 1967 they married and had three children. Prior to marriage the wife worked as a secretary but stayed home when she had kids in ‘69. In 1981 she returned to work part time, but this ended in 1986 until their separation. Since separating the wife has worked several part-time jobs but was unemployed at the time of trial. She says she’s been looking for work yet has been unsuccessful. She argues that spousal support should not be time limited and that $900 was too low.

“Absent a finding by the trial judge that Ms. MacDonald had certain future employment; had not made reasonable efforts up to the time of trial to obtain employment; or that she sought to pursue unrealistic retraining goals; given her age, the length of the marriage, her unsuccessful attempts to find employment and her time out of the workforce, this was not an appropriate case in which to order terminal maintenance.”

There is a presumption in favour of “indefinite orders” and the limited circumstances in which time-limited orders may be made. In time-limited orders, the onus is on the recipient to justify extending the order. There is risk inherent in attaining self-sufficiency.

22
Q

What is a material change in circumstance?

A

Willick v. Willick applies to child support; G(L) applies to spousal support:

A chage not contemplated by the court at the time of the order, and that, if known at the time the order was granted, would have led to different terms.

It must be a permanent change in circumstances. (LMP v LSC).

23
Q

What is the Miglin Test?

A

A two-stage test to determine whether a separation agreement can be relied upon for final support agreements:

First, the court considers the circumstances in which the initial agreement was made: whether the agreement was negotiated fairly[1] and whether the agreement conformed with the objectives of the Divorce Act.

Second, the court must consider the current circumstances: whether the agreement still reflects the intentions of the parties and whether there has been significant change in circumstances such that it was reasonably unforeseeable at the time of formation

24
Q

What happend in LMP v. LS SCC. 2011?

A

Test for variations under s.17 of the Divroce Act:

(1) Do the conditions for a variation exist?
Has the applicant shown a material change in circumstances?
Apply Willick and G(L) then consider whether the change would likely have resulted in a different order; not a temporary or a trivial change.
Start from proposition that the original order was correct, and adjust for the change that happened. This is NOT a de novo hearing or a retrial.
Court should not depart lightly from what has already gone before.

(2) If the threshold is met, what variation to make?
Only make a variation that is justified by the change – right from s. 17 – the court SHALL take into account the change
This is not a de novo hearing – this is what the TJ did in considering whether it could work.

25
Q

What happened in R.P. v. R.C. SCC 2011?

A

Support payor ex-husband sought to terminate spousal support for elderly ex-wife on grounds that he could no longer provide support due to his retirement and depletion of assets by the economic downturn in 2008; payor’s application dismissed, as he was unable to show that he had sold his investments (thereby locking in his losses) or provide evidence about his financial picture at the time of the original support order; evidentiary gaps made it impossible for court to determine whether there had been any material change in circumstances that would entitle payor to a variation of spousal support

Standard for variation of Spousal Support is found in s.17 of Divorce Act. For a very long time the standard for variation required a “Material Change In Circumstances”. What is a material change in circumstances? Answer, from Willick: “A change that, if known at the time, would have resulted in a different outcome”.

26
Q

Are the Spousal Support Advisory Guidelines similar to the Federal Child Support guidelines?

A

No. The Spousal Support Advisory Guidelines have not been legislated by the federal government and operate on an advisory basis only.

The Spousal Support Advisory Guidelines do not deal with entitlement.

27
Q

What are three important differences in the Spousal Support Advisory Guidelines between ‘with child support’ and ‘without child support’?

A

1) “With child support” uses the net income of spouses. Without child support uses the gross income.
2) The with child support formula divides the pool of combined net income between spouses, NOT THE GROSS INCOME DIFFERENCE.
3) The upper and lower percentage points

28
Q

What are the Federal Spousal Support Advisory Guidelines?

A

An average of past cases that help determine what amount of spousal support to pay and for how long.

29
Q

Is Spousal Support exclusively the domain of the Divorce Act?

A

No. Provincial legislation matters too. However, this analysis will not be on the exam.

30
Q

IF you haven’t received support for long enough to compensate you for the role you lpayed within the marriage, so long as your right to compensation remains then your right to support remains as well.

A

Moge.

31
Q

What is a logical problem with Bracklow?

A

No proof that Mrs. Moge would ahve been anything other than a cleaner. No need to prove that your spouse would have become a rocket scientist rather than a front desk at tim Horton’s but for the marriage. We just assume that a person who had a career prior to marriage that the marriage estopped the flourishing of that career.

32
Q

Do the Spousal Support Advisory Guidelines deal with entitlement?

A

No. They do not!

33
Q

What is the Rule of 65?

A

Without child support, indefinite support (duration not specified) in two circumstances:

1) When the marriage lasts longe than 20 years
2) When the marriage last longers than five years when the years of marriage plus the age of the support recipient at the time of separation equals or exceeds 65.

34
Q

Is the SSAG requires indefinite support, can the payor get out of it?

A

Yes. If there is a material change in circumstances. E.g. Recipient wins the lottery or the payor has an unforeseen change in his financial situation making spousal support an undue hardship.

35
Q

For the Spousal Support Advisory Guidelines, what is the difference in duration analysis between with children and without children?

A

When there is children there is no calculation for duration. This is because it is more difficult for the custodial spouse to re-enter the workforce.

36
Q

What is INDI?

A

Individual Net Disposal Income. It is used in the calculation of SSAG with Children. It takes into account income, child support, statutory deductions, and tax benefits. It does not take into account food or shelter.

37
Q

What is “restructuring”?

A

Most common in “Without Children” formula. This allows somebody to restructure the period of when somebody is required to repay. For instance, requiring 20 years of child support to be delivered within two years. Or, extending it to 40 years if you want more of a cusion.

Most likely for shorter marriages.

38
Q

Are the SSAG applicable in the interim during divorce trials?

A

Yes.

39
Q

Are the SSAG applicable during an application to review or vary?

A

Yes, but it must be considered contextually. If the payor gets a raise you cannot just increase the values imputed into the formula, you need to first run an entitlement analysis.

40
Q

Tier v Hynes, Ont CA

A

You can never oust the court’s jurisdiction to vary under s.17. This decision allowed the wife to vary an order that terminated her spousal support ten years after her terminal.

41
Q
A
42
Q

The Boston Case

A

This is the Double Dipping Case.

In general, double dipping will not be allowed. However, in specific circumstance it might be.

This is a 36 year marriage that produced 7 children. The spouses did an asset trade off. He kept his pension by giving the wife his share of the equity in the home. At the time of trial these assets were valued equally. He also agreed to pay 3200 a month in spousal support. Flash forward a number of years the husband retires. He seeks a variation as his retirement constituted a material change in circumstances given the substantial decline in income. He was told that he received 8k a month, and 53% of it was earned during the marriage. The wife had invested prudently and had a net worth of 500k. The husband had virtually nothing.

The court should have only considered the money coming in after the marriage ended. This is because he already bought his pension back by selling his house. If he is required to pay support from the 5300 then he is forced to dip from the same pot. That is unfair.

The recipient had 500k networth was required to use her assets to support herself.

||Julia Cornish likes this case. This means it will probably be on the exam?||