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Spousal support reduced and time-limited following payor's retirement to prevent double dipping from equalized pension.
The applicant brought a motion to change a final order for spousal support following his retirement from the Ontario Provincial Police.
The court found that the applicant's retirement constituted a material change in circumstances that was not foreseen in the original order.
Applying the rule against double dipping, the court limited the applicant's income for support purposes to the non-equalized portion of his pension.
The court also imputed income to the respondent based on her ability to generate income from equalized assets.
Spousal support was reduced to $1,050 per month and a fixed termination date was set for October 31, 2021.
Spousal support reduced upon payor's retirement to avoid double recovery from previously equalized pension.
The parties separated after a 36-year marriage.
The husband's pension was equalized as property, and he paid spousal support.
Upon retirement, the husband applied to reduce spousal support, arguing that paying support from his pension income constituted 'double dipping' since the pension had already been equalized.
The Supreme Court of Canada held that to avoid double recovery, it is generally unfair to allow the payee spouse to reap the benefit of the pension both as an asset and then again as a source of income.
The payee spouse has an obligation to use the assets received on equalization in an income-producing way.
The Court reinstated the motions judge's order reducing spousal support.