September 23, 2020 – Post-Separation Increases In Income

“Spouses are not automatically entitled to share in post separation increases in income.  To do so, one must establish a compensatory basis for the claim.  Otherwise, spousal support is to be generally calculated on the basis of parties’ incomes as of date of separationHersey v. Hersey,  2016 ONCA 494 (CanLII).  This trial is unusual – a post separation increase in income is being considered within an original application – but the principles remain the same.

Justice McDermid in Patton-Casse v. Casse, 2011 ONSC 4424 (CanLII) sets out at para. 136, the criteria to be considered on a claim to include a payor’s post-separation income increase in a determination of spousal support:

(a) Were the payor’s skills and credentials from which he earns the increased income obtained during marriage?

(b)     Does the income of the payor flow from a job that is different from that which he had during marriage? Is the reason for the increase a career continuation or a new venture?

(c)     Was this a long-term marriage with a “complete integration of the parties’ personal and economic lives”?

(d)      What is the time elapsed between the date of separation and the date of the income increase?

(e)      Is the support being awarded compensatory or non-compensatory?

These criteria were significantly expanded by Justice Chappel in Thompson v. Thompson, 2013 ONSC 5500 (CanLII) in which she repeated and expanded upon the general principle that a spouse is not automatically entitled to share in post-separation income increases. Relevant to these circumstances, she included in her analysis a consideration of whether the increase can be linked to contributions made by the recipient spouse; whether the parties’ personal and financial affairs became completely integrated during the course of the marriage, and the extent of the recipient’s sacrifices and contributions to the family.”

         Garnet v. Garnet, 2016 ONSC 5922 (CanLII) at 105-109