When a marriage or common-law relationship ends, the financial implications can be overwhelming. Among the various financial considerations—from property division to child support—one issue frequently stands out as particularly contentious: alimony, or as it’s formally known in Ontario, spousal support. In this blog, we offer you a brief overview on the different types of alimony, how it’s calculated, and the circumstances under which it can be modified.
What is Alimony?
Alimony, commonly referred to as spousal support in Ontario, is a financial obligation that one partner may have to fulfill in favor of the other following the dissolution of a marriage or the end of a common-law relationship. The purpose is to balance the financial disparity between the two parties, ensuring that neither faces undue hardship.
By doing so, alimony aims to ensure that neither individual experiences undue financial hardship or a drastic change in living standards. Whether it’s helping to cover basic living expenses, educational pursuits, or even healthcare needs, alimony serves as a financial safety net, designed to offer a semblance of economic stability during a challenging life transition.
Types of Alimony in Ontario
1. Temporary Alimony
Also known as “interim” alimony, this type of support is usually granted while divorce proceedings are ongoing. It serves as a temporary financial cushion, aimed at helping the lower-earning spouse navigate the often costly and emotionally taxing legal process. Interim alimony ensures that the spouse with fewer financial resources can manage essential living expenses, such as rent, utilities, and groceries, as well as cover legal costs like attorney fees and court charges.
2. Permanent Alimony
Permanent alimony is generally awarded when the marriage has lasted for a long time, and one spouse has become financially dependent on the other. The support continues until the dependent spouse can become financially independent or until either party’s circumstances change significantly.
3. Rehabilitative Alimony
This type is designed to support a spouse who needs time and resources to acquire skills or education to re-enter the workforce. The duration is typically set for a specific period, for example, you will have to pay spousal support until your ex-spouse gets a degree and starts earning.
4. Lump-Sum Alimony
Instead of monthly payments, a one-time lump sum is provided. This is often the case when the paying spouse wants to sever all financial ties immediately and happens more commonly among older couples.
Calculating Alimony in Ontario
In Ontario, the Spousal Support Advisory Guidelines provide a framework for calculating alimony. Factors considered include:
- Length of the marriage or relationship
- Age and health of both parties
- Income disparity between the spouses
- Child custody arrangements
It’s crucial to consult a family lawyer who can help you navigate the complexities of these calculations. According to Statistics Canada, the median alimony payment in 2018 was around $4,400 per year, but this can vary widely depending on individual circumstances.
Modifications to Alimony Payments
Alimony is not set in stone. Either party can request a modification due to changes in circumstances such as:
- Loss of employment
- Remarriage of the receiving spouse
- Significant change in income
- Health issues
To modify alimony payments, you’ll need to go through legal channels, often requiring a court hearing. Documentation and evidence will be necessary to support your case.
While this article provides a general overview, it’s always advisable to consult a legal expert to understand how these rules apply to your specific situation. Contact our experienced family lawyers at Sterling Law today for your first free consultation (up to 30 minutes only) and take the first step toward securing your financial future.