April 24, 2023 – “Sidestepping” Support Obligations & Voluntary Retirement

“Parties cannot sidestep support obligations by unilaterally deciding to leave the workforce:  As stated in Bullock v Bullock 2004 CanLII 16949 at para 13: “A support payor cannot choose to be voluntarily underemployed whether by retirement or otherwise and thereby avoid his or her spousal support payment obligations”.

This is not to say that voluntary retirement can never constitute a material change in circumstances.  Every case must be determined on its own facts, with consideration of all relevant factors, including the language of settlement documents.  In this case, the minutes of settlement were silent on the issue of retirement.  It would be beneficial for parties to turn their minds to this eventuality when crafting terms of resolution.  We adopt the comments in Bullock v. Bullock at para 1:

Does withdrawal from the workforce at age 62 qualify as a “material change of circumstances” justifying variation of spousal support?  While every case must be looked at on the basis of the unique circumstances of the parties, as a general proposition, a payor of spousal support should make his or her retirement plans on the basis that support will continue until aggregate retirement savings can be expected to keep both former spouses at reasonable standards of living.  Otherwise, our regime of spousal support will tend to leave payee spouses in positions of financial need, often dire need, at a time in their lives when they cannot take meaningful steps to ameliorate their own condition.”

Cossette v. Cossette, 2015 ONSC 2678 (CanLII) at 13-14