SPOUSAL SUPPORT
Spousal support is money one spouse pays to the other to address any financial imbalances after a relationship ends. This support can be given as a one-time payment or in regular installments.
Sometimes, spousal support is ongoing, but in other cases, couples agree on support for a specific duration or decide to review the arrangement later.
If structured correctly, it can be tax deductible for the payer in Canada. Periodic spousal support is tax-deductible for the payer and taxable income for the recipient:
Requirements:
The couple must be living separately
The payments should be regular, not a one-time sum
The payments should be based on a court order or written agreement (for example a Separation Agreement)
Time-limited support vs. infinite one
In shorter marriages where both spouses are financially stable, it might make sense to have support for a specific number of years. However, in marriages lasting a decade or more, setting a predetermined end to support can be viewed as unfair. Judges in Canada rarely support this approach in mid-term or long-term marriages.
It's not to say that parties can't agree to time-limited support after a long marriage, but a court may not approve such an arrangement.
A more common approach is to have a clause for a review of the support (amount or entitlement) after a certain number of years. While this means re-engaging in the process later on, it provides flexibility and is often a practical choice.
After a lengthy, conventional marriage, spousal support might last indefinitely. This is especially true when it's clear that one spouse faced ongoing financial challenges due to career sacrifices made to prioritize family responsibilities, like raising children.
Example 1
John will pay Mary $___ when this Agreement is signed and $___ from his share of the family home sale proceeds on closing.
Example 2
John will pay spousal support of $___ a month starting __________(date) and ending on __________ (date). John will make the payments on the first day of each month. On __________ (date), spousal support ends forever. This term cannot be changed.
Example 3
John will pay spousal support of $___ a month, starting __________ (date). John will make the payments on the first day of each month. John's entitlement to support Mary will be reviewed 5 (for example) years from the date of this Agreement.