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Case law - SS and personal finance mismanagement

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  • Case law - SS and personal finance mismanagement

    I was trying to search on CanLII, but perhaps I wasn't using the correct search terms. Essentially, I'm looking for case law regarding spousal and personal finance mismanagement.

    We have a situation where the ex is getting approximately close to $10k a month combined SS and CS. One child, 50-50 parenting yet she still receives full table amount and 100% of Section 7 expenses.

    We are seeking a reduction and eventual SS termination. 6 year common law relationship, SS has been paid for 3+ years. It is the ex's position that she is in dire financial need and her spousal should increase.

    From what we can tell, she has spent every penny that she received from CS/SS and from equity she had in the house (she received 75% of the equity). 6-8 vacation trips a year, a poor real estate investment, and we're not sure what else. This was not her standard of life when they were together.

    Is there any case law that covers when the person on SS has essentially bankrupted themselves post-separation? Especially one who came out of the relationship with substantial assets? Any help would be appreciated.

  • #2
    At every stage of any court process both parties are required to complete financial statements.

    It may be as simple as comparing financial statements from time of separation to current.

    What is your material change of circumstance(s)?
    Is there a review date specified in separation agreement?

    I have not read anything anywhere where someone, who has previously been deemed to be entitled to SS, have SS stopped because they are a poor money manager.


    • #3
      How long are you ordered to pay SS? For a 6 year common law/marriage, it seems like you are seeing the light at the end of the tunnel (paid 3+years).


      • #4
        Arabian, it's more due to her requesting an increase in SS due to the fact she overspent. Just wondering if there's any case law that addresses increases based upon overspending.

        The review date was specified for earlier this year and didn't require a material change; awaiting her financials with her reply. We were in court previously but the issue of spousal was bifurcated and this is a new application. She didn't provide updated financials for 5 different case and settlement conferences, however she can not file her reply without it.

        Her current financial position will be worse than when they split, as she has spent all of her savings and equity from the house.


        • #5
          Littlemonk, I'm typing for my partner as he's not a big online guy. Duration of support is not defined, there was a set review for last spring but she won't speak to him, or agree to mediation/arbitration so unfortunately we're back in court.

          He is willing to pay her for a total of 7 years (reduced amount for the final 3), as he is trying to be fair. She believes she's entitled for a total of 14, or until the child turns 18. It's tough as she's self-represented, but hasn't done any research on quantum and duration.

          We don't believe her reasons for an increase will fly, we just feel better when I can find case law.


          • #6
            In my opinion, a 7-year SS for a 6-year common law/marriage is MORE than fair. Your partner is a good person but unfortunately his ex is abusing his kindness.


            • #7
              On a side note, if its 50/50 why is he paying 100%. is this due to her income being 0. Suggest, income input to her mins. wage, will not be much. She should be working to support her child(en).

              I shake my head....when people can't even work to support their kids.


              • #8
                Hi good_mom; he tried being overly generous when they separated, and it only became shared parenting last year. We are going for an imputed income, and a resulting off-set CS. She worked before, so her historical income was quite high. It's baffling.


                • #9
                  Originally posted by neverwhere View Post
                  Hi good_mom; he tried being overly generous when they separated, and it only became shared parenting last year. We are going for an imputed income, and a resulting off-set CS. She worked before, so her historical income was quite high. It's baffling.

                  Some people feel entitled and if someone can finance their life why not. Bonus points if it means screwing your ex over at the same time.


                  • #10
                    some cases from Alberta which you may find interesting:


                    financial mismanagement by both parties (be careful what arrows you shoot):


                    Here is one from Ontario (father claims mother is overspending):

                    Last edited by arabian; 11-10-2016, 04:54 PM.


                    • #11
                      Financial management for Mom is not your concern - it's not really your business what she spends money on.

                      However, I can't see why an increase in spousal support could be justified, and for the same reason - her choices about how to spend her money are not Dad's problem. They are separate financial entities. Just say no.

                      With respect to Dad's wish to change to offset CS, how long ago was Dad's agreement signed? It sounds like he agreed that Mom would have primary residence and that he would 100% of S7. If he signed such an agreement six months ago and now wants to change, I can see that causing problems, but if the agreement is a few years old, it would be easier to argue that the situation has changed such that shared parenting is feasible.

                      But as several posters on this forum can tell you, once a parent has given primary residence to the other parent, it can be difficult to change that legally, unless there are good reasons.


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