Although many people are familiar with the concept of spousal support and the notion that one party, generally the higher-income-earning spouse, is typically ordered to pay the other party spousal support if a couple decides to divorce, however, people tend to be less aware of interim spousal support in terms of what it precisely is and when is available to family law litigants.
In this blog, we explore the concept of interim spousal support, including who is entitled to seek such support, how the courts determine the appropriate amount to be paid, and the duration for which such payments must be made.
Interim Spousal Support Sought in High Net Worth Divorce
The BC Supreme Court recently decided a claim for interim spousal support that involved a high net worth divorce. The parties in that case had met in 2002, begun living together in a marriage-like relationship at some point (exactly when this occurred was in dispute as part of the divorce proceedings) and separated in March of 2022. At the time of separation, the claimant was 69 years old and had not worked outside of her home throughout her relationship with the respondent, a successful businessman of extremely high net worth who was 72 years old at the time of separation.
After the parties decided to go their separate ways, legal proceedings were commenced before the BC court regarding the couple’s separation. In particular, the claimant sought payment from the respondent for interim spousal support. Specifically, the claimant alleged that she was entitled to payment of $153,000 per month before taxes, based on her calculations of the respondent’s income as approximately $8 million per year. In the alternative, she contended that she was entitled to payment of $40,000 per month, after taxes, to maintain the lifestyle she had enjoyed and to which she had become accustomed while in a relationship with the respondent.
Defining Interim Spousal Support
Spousal support may be defined as a payment made by one former partner to the other as compensation for the income lost to the payee due to the breakdown of the relationship. Such payments are intended to ensure that neither party becomes financially disadvantaged due to the end of the relationship.
Interim spousal support orders are the same as spousal support orders, except they apply for the interim period between a family law proceeding concerning support being filed and its final determination by the court. In other words, if someone files for divorce and support from their spouse, it may take months or even years before the matter is heard and finally settled by a court of the province of BC. In such cases, it would be unfair for the party entitled to receive support to go without, particularly for a lengthy period of time. As such, the courts will typically order interim spousal support for the period between the filing of a claim for support and the final decision by the court concerning the same.
The Objectives and Availability of Interim Spousal Support
BC’s Family Law Act governs spousal support obligations, section 161 of which dictates that the objectives of spousal support are fourfold: to recognize any financial advantage or disadvantage to either spouse that is attributable to the breakdown of the relationship; to divide the financial consequences of raising and caring for a child, beyond the duty to pay child support, among the parents of the child; to relieve any financial hardship that arises as a result of the end of the relationship; and, as much as is possible, to foster the financial independence of each party, within a reasonable period of time.
In respect of applications for interim spousal support specifically, the court makes its decision by the following principles:
- In an application for interim spousal support, the needs of the applicant and the ability of the respondent to pay take on greater significance
- An interim support order should provide enough income to enable the applicant to continue to live at the same standard of living as that enjoyed while they were in a relationship with the respondent, so long as it is warranted by the ability of the respondent to pay such support
- Interim spousal support orders do not require the court to undertake an in-depth analysis of the parties’ financial circumstances, as this matter is better left for determination at trial; as such, interim spousal support orders achieve, at best, only rough justice
- In an application for interim spousal support, the court must not emphasize any of the Section 161 criteria above any of the others
- The goal of achieving financial self-sufficiency for both spouses is not as important in applications for interim, as opposed to final spousal support
- The amount of interim spousal support ordered should always be within the range deemed applicable by the Spousal Support Advisory Guidelines unless there are extraordinary circumstances
- Interim spousal support should be ordered only in circumstances where the applicant has made out a successful prima facie case for entitlement
- Ordering interim spousal support is less advisable in circumstances wherein the resolution of a contested factual issue is pending, particularly if the issue involves a disagreement about the threshold, such as entitlement to spousal support
Availability and Appropriate Amount of Interim Spousal Support in This Case
In the case at hand, the court reviewed the financial statements prepared by both parties and considered the lifestyle the two had enjoyed as a couple, which included extensive travel, dining in fine restaurants, and membership to exclusive, expensive clubs. Given the respondent’s annual income of approximately $8 million, the court was also satisfied that there was no question that the respondent had the ability to pay interim spousal support to the applicant.
However, the court also noted that many matters remained in dispute concerning the parties’ separation, and it noted that it would be impractical to expect the court to resolve such matters in an interim application. Moreover, the interim spousal support order would only be in effect until autumn 2025, when the other matters between the parties were scheduled to go before the court for final determination. As noted above, an interim application for spousal support achieves only rough justice.
As a result, the court was satisfied that the amount required by the applicant to maintain her pre-separation lifestyle was less than the $40,000 post-tax she sought. It ordered the respondent to pay the applicant interim spousal support of $30,000, post-tax, per month until September 2025 (when the matter was scheduled for trial).
Vancouver Spousal Support Lawyers Assisting Clients With Their Spousal Support Claim
Meridian Law Group has been a trusted advocate for families in British Columbia for over 30 years. Our experienced family lawyers provide comprehensive legal services, including spousal support, to help you navigate complex family law matters. Contact us today for a confidential consultation by visiting us online or calling (604) 687-2277.
