Court Awards a Record Setting Spousal Support Settlement in Divorce Case of Toronto Woman On December 3 2009, the Globe and Mail published a story about a record setting spousal support award made recently by the Ontario Superior Court. According to the Globe and Mail, a 61-year-old Toronto woman was granted $110,000 per month in spousal support from her ex-husband who earns as much as $4 million per year. The judge presiding over the case stated that due to the fact that the wife had sacrificed her career to take on the role of a stay-at-home wife and mother for the duration of their 33-year marriage, she should not have to use her savings to pay for her ongoing living expenses.

According to Statistics Canada, approximately 37 per cent of all marriages end in divorce. While there are many reasons couples decide to divorce, there is no doubt that the financial impact of divorce on their finances is significant. Divorce is not only is the destruction of a family, its also the destruction of a significant economic unit. The dissolution of the financial partnership which a marriage has created should be approached with as much forethought and planning as the dissolution of the marriage. Its important, therefore, that you have a good understanding of the financial implications of your divorce as having this knowledge will help you save time and money and minimize the stress you experience as you negotiate you way through the divorce process. Some of the financial issues you should consider during your divorce process include:

• Understand the tax benefits and liabilities with regards to spousal support and child support. In Canada, child support is tax neutral, that is the recipient does not pay any tax on child support. Spousal support, on the other hand, is tax deductible to the payor and is treated as taxable income to the recipient.

• Protect yourself and your finances by informing your banking and financial institutions about your circumstances. This might allow you to require both you and your spouse’s permission and approval for the removal of funds or other transactions, ensuring the safety of your joint finances.

• Be sure to establish credit in your own name if you have not already done so. If you have joint debts with your spouse, a divorce can make it difficult to properly manage joint credit and debts. If you have joint debts, you will be liable for the entire amount owed and your credit rating can be negatively affected if your spouse does not pay their fair share. Along with establishing your own credit, you should also establish your own savings.

Please note that the information is general in nature and not intended to be a substitute for legal advice. If you are concerned about how to go about your spousal support rights or obligations following the breakdown your marriage or common law relationship, please contact a lawyer. You can get free information about how to select and retain a lawyer by getting a copy of the FREE REPORT offered at the top right-hand corner of this page. Do not sign a separation agreement without independent legal advice.