We have had the benefit of some recent post retirement spousal support cases. For some support payors, the landscape may not be quite as bleak as my previous blog post might indicate.
We all know that spousal support paid by a Canadian resident to a Canadian resident is tax deductible to the payor and must be included in the income of the recipient.
There is a fair amount out there on the web about spousal support and retirement. My colleagues discuss the leading cases quite intelligently. I recommend that you read what they have to say. I am going to distill down the current wisdom based on the cases to a few numbered points. But remember, each case is different. Before you plan to retire, it pays to have a consultation with a family law lawyer.
I don't like Separation Agreements. Many would surely disagree. In my view, Separation Agreements are not always that easy to enforce. It is much better to have a court order, especially if you seek to enforce a parenting plan. While the provincial government has a government agency mandated to enforce support orders, no similar agency exists with respect to enforcing parenting provisions. So, I don't like Separation Agreements.
It is a challenge at the best of times to achieve a legally enforceable spousal support separation agreement with a former partner/spouse. Is it legally possible to achieve an enforceable "air tight deal" when the former partner/spouse is mentally ill? We say: "unfortunately - no".