Top 5 Reasons to Review Your Current Separation Agreement
Retirement
If either you or your former spouse has retired or is planning to retire, it is time to review the support clauses of your Separation Agreement. Many factors need to be taken into consideration to determine the appropriate level of revised support, including what assets may have already been divided in a property division. For instance, if a pension was already divided as part of the property division, then the divided income may not be included the support calculation.
Post-Secondary Education
Once a child is accepted into a post-secondary educational institution, it is time to review the special or extraordinary section 7 expenses. Each party as well as the child are expected to contribute towards this special expense. The amount or percentage that each party and the child will contribute towards this expense will need to be determined. Table child support may also need to be varied depending on whether or not the child will be living primarily with one parent, equally with the parents or away at school. Each situation is unique and needs to be considered.
Parenting Time Changes
Over time it is not uncommon for the parenting time or a residency of a child or children to change. There are many factors on why this may happen. There may also be a situation where one child lives primarily with one parent and another child lives equally with both parents. If the parenting time or residency of a child or children changes, this will affect the monthly table child support, which should be reviewed at a minimum on a yearly basis when the parties exchange their income tax returns and notice of assessments.
When Child support Ends
If both child and spousal support are being paid, it is important to review spousal support once child support ends. When spousal support is calculated, it is placed second to child support. This means that if incomes remain the same, and child support is reduced or eliminated, the amount available for spousal support increases typically. There continues to be an issue of entitlement to spousal support which will need to be determined.
Increases or Decreases in Income
If either parent’s income changes, it is time to review the child support and spousal support in an agreement. Typically, parties will exchange, at a minimum, his or her complete annual income tax return as well as the Notice of Assessment or ReAssessment. These documents are the starting points to determine if a parent’s income has changed and if any changes need to be made towards table monthly child support or each parent’s contribution towards a child’s special or extraordinary section 7 expenses.
If any of the above situations have occurred, it is very important that you seek independent legal advice about your particular situation as each situation is unique and requires its own resolution. Mediation is a process that you can use to discuss these changes with your former partner and come to a mutually agreeable amendment with the assistance of a neutral third party. Mediation typically costs less and resolves matters faster than a court action. Further, it provides you and your former spouse an opportunity to come to a resolution which works for your unique family situation.