August 29, 2022 – Stage 2 of Miglin Analysis

“It is in stage two of the Miglin analysis that a court is required to consider whether the agreement “still reflects the original intention of the parties and the extent to which it is still in substantial compliance with the objectives of the Act”.

The Supreme Court majority was careful to strike a note of caution in the approach to stage two. The court stated at para. 89:

We stress that a certain degree of change is foreseeable most of the time. The prospective nature of these agreements cannot be lost on the parties and they must be presumed to be aware that the future is, to a greater or lesser extent, uncertain. It will be unconvincing, for example, to tell a judge that an agreement never contemplated that the job market might change, or that parenting responsibilities under an agreement might be somewhat more onerous than imagined, or that a transition into the workforce might be challenging. Negotiating parties should know that each person’s health cannot be guaranteed as a constant. An agreement must also contemplate, for example, that the relative values of assets in a property division will not necessarily remain the same. Housing prices may rise or fall. A business may take a downturn or become more profitable. Moreover, some changes may be caused or provoked by the parties themselves. A party may remarry or decide not to work. Where the parties have demonstrat ed their intention to release one another from all claims to spousal support, changes of this nature are unlikely to be considered sufficient to justify dispensing with that declared intention.

The majority in Miglin added what appears to be the guiding principle of the stage two analysis at para. 91:

Parties must take responsibility for the contract they execute as well as for their own lives. It is only where the current circumstances represent a significant departure from the range of reasonable outcomes anticipated by the parties, in a manner that puts them at odds with the objectives of the Act, that the court may be persuaded to give the agreement little weight.”

         Murray v. Murray, 2005 CanLII 30304 (ON CA) at 21-23