Can Spousal Support Be Garnished From Wages in Ontario?

If your former partner has stopped paying spousal support, you want to know whether the money can be taken straight from their pay. In Ontario the answer is generally yes, and wages are only one of several places support can be collected from.

This article explains how wages, bank accounts, tax refunds and other sources can be reached, and what you need to do to start. It is general information, and a lawyer can advise on your own file.

Wages and the support deduction notice

The usual way to reach wages is through the payor's employer. FRO may send a support deduction notice to the payor's income source, such as an employer, which must remit the amount to FRO. FRO then pays the recipient, since it collects from the payor and pays the recipient for court-ordered support.

You can also go to court for an order to deduct support from bank accounts, retirement savings or wages, or to pursue the payor's employer. Which route makes sense depends on the facts, such as whether the payor is employed, self-employed or between jobs.

Bank accounts, tax refunds and other sources

Wages are not the only target. FRO's enforcement tools reach well beyond the paycheque.

FRO can also use pressure tools, including licence suspension and passport and federal licence suspension. These are separate from garnishment and are aimed at encouraging payment.

Getting started as a recipient

Enforcement starts with the right paperwork. A court order for spousal support is automatically filed with FRO. A separation agreement or domestic contract must first be filed with the court on Form 26B, then registered with FRO with a registration package. If your agreement was never filed, FRO has nothing to enforce, so this is the first thing to check.

Once your case is with FRO, it contacts both parties and assigns a seven-digit case number. FRO does not pay the recipient when a payment is missed, so you complete a Statement of Arrears to collect unpaid support and interest.

• Confirm your order or agreement is filed and registered.
• Keep your FRO case number and records of missed payments.
• Complete a Statement of Arrears.
• Share any information you have about the payor's employer or accounts.
• Ask a lawyer whether a court order for deductions makes sense in your situation.

What can slow collection down

Garnishment is not instant, and it cannot create money that the payor does not have. Some practical limits are worth knowing.

• If the payor's income drops significantly, the Spousal Support Advisory Guidelines ranges move down, and ability to pay can reduce the range to zeros across the board. A payor can ask a court to change support, and only a court can do that, not FRO.
• If the drop may not be permanent, a court may order disclosure of future re-employment or add a review term.
• A payor facing enforcement may pay all arrears, enter a payment plan, or ask for a refraining order before a licence suspension takes effect.

If a payor tells you they cannot pay, do not assume the debt has disappeared. Whether arrears can be reduced depends on the facts and on what a court decides, so ask a lawyer rather than relying on what the payor says.

Tax and what to do next

Spousal support paid under an order or agreement is generally deductible by the payer and taxable to the recipient for orders or agreements made after April 1997, if the order or agreement clearly states the amount and all child support for the current and previous years is fully paid. How this applies to money collected through enforcement depends on your situation, so it is worth confirming with an accountant. Child support is not deductible or taxable. If the payor makes one lump-sum payment of at least $3,000 that brings payments up to date, the CRA says the payer must give the recipient Form T1198 if the payer can deduct it and the recipient must report it as income. An accountant can confirm how this applies to you.

• Check that your order or agreement is filed with FRO.
• List every missed payment, with dates and amounts.
• Complete a Statement of Arrears.
• Find out where the payor works and banks, if you can do so safely and legally.
• Keep copies of any lump-sum payment and any T1198 form you receive.
• Speak to a lawyer if collection stalls or the payor asks for a change.

Frequently asked questions