Job loss can significantly disrupt a family’s financial stability, particularly in situations where one spouse is the primary breadwinner. When a job loss occurs during or after a separation or divorce, it can substantially impact spousal support obligations and entitlements.

This blog post explores the principles of spousal support and outlines the factors a court may consider when a payor spouse loses their job, and their ability to pay spousal support is impacted.

Understanding the Basics of Spousal Support

Spousal support is not an automatic right or entitlement when a relationship breaks down. However, when a spousal support award is made, it represents a financial obligation that one spouse must pay the other after a separation or divorce. The amount and duration of spousal support are determined based on various factors, including:

• the length of the relationship;
• the age of the parties;
• the parties’ standard of living during the relationship;
• the earning capacity of each spouse and their ability to become self-sufficient; and
• the needs and financial circumstances of each spouse.

The Canadian Department of Justice has also created a set of documents titled the “Spousal Support Advisory Guidelines” that serve as a general calculation tool intended to assist with quantifying support. These Guidelines, however, are often used as a starting point for a larger calculation.

The Impact of Job Loss on Spousal Support Obligations

When a payor spouse loses their job, it can significantly impact their ability to meet their spousal support obligations. If the job loss is temporary, the court may order a temporary reduction or suspension of spousal support payments. However, the court may need to reassess the spousal support order if the job loss is permanent or long-term.

Factors to Consider When Assessing Spousal Support After Job Loss

Several factors are considered when determining whether and to what extent spousal support should be modified after a job loss, such as:

• The nature of the job loss: Whether the job loss was involuntary or voluntary, due to economic conditions or personal reasons, temporary or long-term, and the likelihood of the spouse finding new employment.
• The efforts to find new employment: The court will consider the steps taken by the payor spouse to secure new employment, including job search activities, enrollment in educational, skills or training programs, and career counselling.
• The earning capacity of the payor spouse: The court will consider the spouse’s potential to increase their income through new employment or other means.
• The needs of the recipient spouse: The financial needs of the recipient spouse, including their ability to support themselves and any dependent children, will be taken into consideration.
• The standard of living the parties had during the relationship: The standard of living enjoyed by the parties during the relationship can be used as a benchmark for determining an appropriate spousal support award.

Varying Spousal Support Orders

If a spouse experiences a job loss and believes that it should result in a modification of the existing spousal support order, they must file an application with the court. The application should provide evidence of the job loss and its impact on their ability to meet their spousal support obligations. Ultimately, the spouse seeking a variation must establish that there has been a change in circumstances that warrants a variation.

The court will then consider the abovementioned factors and determine whether a modification is warranted. If a modification is granted, the court may reduce or suspend spousal support payments or order a temporary increase for the receiving spouse.

Dealing with Job Loss and Meeting Spousal Support Obligations

If you have experienced a job loss and are no longer able to meet your spousal support obligations, it is important to seek legal advice as soon as possible to learn about the options available to you before accumulating substantial arrears. It is also important to act promptly to protect your interests and address your financial obligations.

Moreover, it is crucial to keep thorough and detailed records of your efforts to seek new employment or retraining, and you may wish to consider finding alternative sources of income to mitigate the impact of the job loss on your financial circumstances. If you are seeking to vary an existing spousal support award, this documentation and other supporting evidence can be crucial in supporting your variation application.

Key Takeaways Regarding Spousal Support Obligations and Job Loss

Job loss can significantly impact one’s ability to meet spousal support obligations and other financial responsibilities. Understanding the factors that are considered when assessing spousal support after a job loss can help individuals navigate this challenging and emotional situation. However, by taking quick action, seeking trusted legal advice, and being prepared to provide evidence, individuals can protect their financial interests and work towards a fair and equitable resolution of their spousal support issues.

Contact the Windsor Lawyers at Johnson Miller Family Lawyers for Skilled Representation in Spousal Support Disputes

The experienced team of family lawyers at Johnson Miller Family Lawyers in Windsor regularly work with clients to help them navigate the complexities of changing family and personal dynamics. If you have questions about spousal support entitlement spousal support obligations or have experienced job loss and want to vary your support obligations, our lawyers can help. To speak with an experienced member of our family law team about your spousal support matter, call us at 519.973.1500 or contact us online.