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help and thoughts

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  • help and thoughts

    HI Everyone can this actually happen when nothing has even been signed yet ? My Friends ex's lawyer has this in the agreement , he has not signed the agreement yet but has been working back and forth with her Lawyer. I tol;d him to request it to be removed ?

    In full satisfaction of his spousal support obligation, Person will pay person $52,000.00

    when this Agreement is signed. If Steven does not make this payment by January 1,

    2017, he will pay interest to Person on the full amount owing in the amount of 5% per

    annum, compounded monthly.

    your thoughts and have like a 60 day or 90 day to pay if he agrees

  • #2
    If he's in agreement with paying that amount, presumably they could just modify the date if the signing is delayed. Or make it a rolling date of 60 days after the signing of the agreement, as you suggest.

    Until he signs the agreement, it's not a real deadline and nothing bad can happen to him on January 1. If he signs it as it's written on December 31, he could have problems though.


    • #3
      Why would it not be legal? It is lump sum spousal support.

      If it is the date that is the problem then just get the date changed. 60 or 90 days seems fine.

      Also note that 5% per annum on $52,000 is about $220 a month, which is less than an hour's worth of lawyer time. Some things are not worth fighting over.


      • #4
        Ya that was my thought also , its just he might need to sell his house to pay her out but it can't happen in 40days , He is going to send back at 60 days after signing she will get paid


        • #5
          Some random thoughts...

          **if** the payment is taxable / tax deductible (it is questionable for lump sum ss payments), then 5% is very little incentive, given that the payor might save 3-4% in tax by splitting the payment in 2 years. Then adjusting for 1.5% inflation, there's no reason to pay all now. Check marginal tax rates here - Ontario 2016 and 2017 Personal income tax brackets and tax rates

          Also, if you write 2 separate agreements for 23+29, then you can pursue the first one in small claims court (25k limit).

          What's to prevent the payor from paying just the minimum each month in perpetuum? Perhaps add a clause that you will enforce payment in full after 1 year.


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