Does Retirement Count as a Material Change for Spousal Support in Canada?

Does Retirement Count as a Material Change for Spousal Support in Canada?"

A question that comes up a lot in family law is: can spousal support end when someone retires? Take Sean and Su, for example. Sean has been paying spousal support to Su for several years, and now he’s thinking about retiring. Moving from a regular paycheck to a fixed retirement income seems like it should affect how much he pays, right?

How Courts Look at Retirement

Courts don’t just automatically reduce support when someone retires. They first look at whether the retirement is “early.” Early retirement usually means leaving work before age 65, either on a reduced pension or a full pension, and without health issues or other pressing reasons. If the court thinks Sean’s retirement is voluntary and not really necessary, he probably can’t use it as a reason to reduce support.

They’ll also ask: was the retirement really voluntary? If Sean was ill, disabled, laid off, or forced out of his job, that’s a different story. The court will also check his work history—someone who’s had long-term steady employment is more likely to be seen as choosing to retire.

Financial Consequences Matter

Next, the court looks at the financial picture after the marriage ends. Some of the things they consider are:

Were the economic consequences shared fairly during the marriage
Are both parties at a reasonable age for retirement?
How were assets divided?
Does either Sean or Su have financial stability?
How much support has already been paid?
What are their future earning potentials?
Can each party support themselves independently?

If Sean’s retirement is voluntary and the court sees that these factors make a real difference, it could be considered a material change in circumstances.

What Is a Material Change in Circumstances?

A material change in circumstances is basically a big enough shift that, if it had been known when the original support agreement was made, the terms might have been different. For example, if Su, who had been unemployed, gets a well-paying job and no longer needs as much support, that could count. Once the court decides there’s been a material change, they’ll figure out what a fair adjustment to spousal support should be.

Daniel Mandelbaum

CERTIFIED FAMILY MEDIATOR – JUSTICE INSTITUTE OF BRITISH COLUMBIA

I discovered that I was born to mediate and collaborate, as I was – and still am – the individual that my friends and family call on to resolve any conflicts that may arise.