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Entitlement to Spousal Support

Learn about the three main ways Spousal Support entitlement is determined.

Updated over 2 months ago

Understanding Spousal Support Entitlement


Three key types explained

When a relationship ends, it's important for both parties involved to understand how entitlement is determined. There are three main ways to be entitled to Spousal Support, each addressing different circumstances that may arise during or after a relationship breakdown.

What is Spousal Support entitlement?

Spousal Support entitlement refers to the legal right of one spouse to receive financial assistance from the other following separation or divorce. This support recognizes that relationships often involve financial sacrifices and shared decisions that can impact each partner's earning capacity.

Type 1: Compensatory Spousal Support

Understanding compensatory support

The first type of Spousal Support is compensatory spousal support. This form of support compensates a spouse for financial hardship or lost opportunities that occurred during the relationship or its breakdown. Importantly, this type of support carries no blame or judgment and is not a matter of right or wrong, good or bad. It simply recognizes that joint decisions made during the relationship may have created financial imbalances.

How compensatory support works

Compensatory Spousal Support acknowledges that when couples make decisions together, one person may end up with greater financial opportunities than the other. When these decisions result in a loss of opportunity for one partner, there exists a compensatory basis for spousal support.

The key principle is straightforward: it doesn't matter who initiated the decision or what alternatives existed at the time. What matters is that the relationship involved choices that advantaged one spouse's financial position while disadvantaging the other's.

Common examples of compensatory situations

Stay-at-home parenting The most common scenario involves couples who have children where one parent stays home to provide childcare. While this represents a perfectly normal and valuable decision, it causes the stay-at-home parent to lose economic opportunities since they're not actively building their career or earning income.

Career-related relocations Another common example occurs when one spouse relocates to be with their partner or to support their partner's career advancement. This decision may benefit one spouse's earning potential while limiting the other's professional opportunities in their new location.

Supporting a partner's business Sometimes one spouse leaves their job to help build their partner's business. Upon separation, one spouse retains the business and its ongoing income stream, while the other the faces financial impact, unemployment and lost career momentum, having sacrificed their professional development having regard to the decision.

Type 2: Agreement-based Spousal Support

When agreements create entitlement

The second type of Spousal Support entitlement stems from existing agreements or understandings between spouses regarding mutual financial support. These arrangements establish a commitment to provide financial care for one another even after separation.

Forms of agreement-based support

Such agreements can take several forms whether through verbal agreements made during the relationship or formal prenuptial, marriage, or cohabitation agreements.

Regardless of the format, these agreements represent a mutual understanding that the spouses will maintain financial responsibility for each other's welfare after a separation.

Type 3: Non-compensatory (needs-based) Spousal Support

Understanding needs-based support

The third type of entitlement is non-compensatory spousal support, commonly referred to as needs-based Spousal Support. While needs-based Spousal Support may provide similar financial amounts to compensatory awards, it typically differs in duration. This type of support is generally provided for a more limited time period – specifically for as long as the financial need exists.

The focus here is on immediate financial necessity rather than compensating for past sacrifices or lost opportunities.

Conclusion

Remember that each situation is unique, and what applies in one case may not apply in another. Professional legal guidance remains the best way to understand how these principles apply to your specific circumstances. If you're unsure about entitlement in your circumstance, it's always advisable to consult with a family lawyer. You can add it to your list of things to ask your lawyer when you review your agreement or before you finalize it.


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Important Disclaimer

Content and videos in The Divii Knowledge Centre provide general information about separation and divorce and is not and should not be considered legal advice. For guidance specific to your situation, it's important to consult with a qualified family lawyer in your area. It's always highly recommended to seek independent legal advice during your separation.


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