“In Davis v. Crawford, 2011 ONCA 294 (Ont. C.A.), Justices Simmons and Lang writing for the five judge panel set out the following principles applicable to a lump sum support payment:
- A court’s ability to award a lump sum payment is not restricted to situations where there is a real risk that periodic payments will not be made or to very unusual circumstances (para. 51).
- Lump sum awards should not be made in the guise of support for the purpose of redistributing assets (para. 60).
- Lump sum awards can be made to relieve against financial hardship if this has not been done by orders dealing with distribution of property and the matrimonial home (para. 61).
- Whether the payor has the ability to make a lump sum payment without undermining his or her future self-sufficiency is an important consideration (para. 63).
- The court must weigh the advantages of a lump sum award against the disadvantages of doing so on the facts of each case (paras. 66-68).
- The judge making the lump sum award should provide a clear explanation for both the basis for the exercise of that discretion and the rationale for the figure arrived at (para. 75).
- If a lump sum award is made, the court should consider whether the amount is in keeping with the Spousal Support Advisory Guidelines and, if not, explain why the Guidelines do not provide a satisfactory result (para. 76).”