David Lanthier

The parties separated after a 20-year marriage during which they built a successful recreational equipment business.

The trial judge ordered the husband to pay $9,584 per month in spousal support, attributing $400,000 in annual income to him based on past corporate profits.

The husband appealed.

The Court of Appeal allowed the appeal, finding the trial judge erred by failing to apply the Child Support Guidelines to determine the husband's income and by adopting an unreasonable approach to estimating future corporate profits.

The Court reassessed the husband's income at $214,872 and the wife's income at $109,535, and substituted a spousal support order of $1,500 per month.

This was a costs decision following a family trial in which spousal support remained the only unresolved merits issue.

The applicant moved to amend the trial disposition on costs after the court had initially ordered each side to bear its own costs without being advised of a written offer to settle.

Applying the Family Law Rules governing costs and offers to settle, the court held that it retained discretion to change the unentered judgment and that the respondent's failure to accept the applicant's offer was a significant factor.

After considering proportionality, reasonableness, complexity, conduct, and the actual fees claimed, the court awarded the applicant $60,000 inclusive for the period after the offer, with each party bearing their own prior costs.