Can I Reduce Spousal Support After Losing My Job in Ontario?

Losing your job is stressful enough without a support payment due on the first of the month. If you pay spousal support under a court order or a separation agreement, the obligation does not pause on its own just because your paycheque stopped.

This article explains in general terms how a reduction request works in Ontario, why moving early matters, and what can happen to unpaid amounts in the meantime. Every case turns on its own facts, so treat this as a map and not a plan.

Why you cannot simply pay less

A support order stays in force until a court changes it. FRO collects and enforces support, but it cannot change the amount. Only a court can change a support order.

If your obligation is in a domestic contract such as a separation agreement, the usual route is for the parties to negotiate a new contract. It is then filed with the court on Form 26B before it goes to FRO. Paying a lower amount without a new order or agreement leaves the original amount owing, and the difference can become arrears.

What a court looks at when your income drops

Which law applies depends on your situation. The Divorce Act governs support for married couples who divorce, while the Family Law Act governs unmarried partners and married couples who separate without divorcing.

Under the Divorce Act, a court varying a spousal support order must be satisfied that a change in the condition, means, needs or other circumstances of either former spouse has occurred. The Spousal Support Advisory Guidelines (SSAG) describe the case-law test as a change that is substantial, continuing and that, if known at the time, would likely have resulted in a different order. The focus is on what the original order contemplated or took into account, not simply what was foreseeable.

A job loss can qualify, but it is not automatic. The SSAG are not law, though judges often base decisions on them. They say that if a payor's income drops significantly, the ranges move down, and ability to pay can reduce the range to zeros across the board.

• If the drop may not be permanent, a court may order disclosure of future re-employment or add a review term.
• Voluntary under-employment may be an issue. How the circumstances of your job loss and your job search would be viewed depends on your situation, so it is worth confirming with a lawyer.
• Ontario.ca lists changes in income as one trigger for reviewing support, and notes that an agreement or order may already address retirement or set a review date.

How fast should you act?

A court may vary an order retroactively or prospectively under the Divorce Act, and how far back a change reaches is a question for the court on the facts. Do not count on a court backdating relief to the day you were laid off.

Practically, waiting can leave the full amount accumulating as arrears while your request is pending. Starting the process promptly, and keeping a record of when you told the other side about your change in income, puts you in a stronger position to explain the timing.

What happens to arrears in the meantime

If the order is enforced through FRO, missed payments become arrears and FRO can use its enforcement tools. These include garnishing bank accounts, deducting from federal tax refunds, reducing EI and CPP payments, suspending driver's licences and passports, and placing liens on property. FRO may also charge a $400 administrative fee when it takes enforcement action.

Ontario.ca advises payors to pay in full and on time where possible, to contact FRO immediately if they are falling behind to set up a payment plan, to respond to every notice before its deadline, and to attend a default hearing even if forms have been filed. At a default hearing a judge can order payment plans, change the support order, or order jail time of up to 180 days.

Whether existing arrears can be reduced is not something to assume. Under the Divorce Act, a court may vary an order retroactively or prospectively, but how that applies to your arrears depends on the facts, so get advice before relying on it.

What to do next

If you want to ask for a change, the paperwork depends on whether the other person agrees. By consent, you file a consent motion to change (Form 15C) with a financial statement (Form 13), a Certificate of Financial Disclosure (Form 13A), Form 14B and a draft order (Form 25). If the other party disagrees, you file a motion to change (Form 15) with Forms 13, 13A and 25. After an order changes, send the new order to FRO through FRO Online, by fax or by mail.

• Keep your termination letter, record of employment and any severance or benefit details.
• Gather recent pay stubs, tax documents and bank statements showing your income before and after the layoff.
• Keep a log of your job search so you can answer an under-employment argument.
• Contact FRO right away if a payment will be late, and respond to every notice before its deadline.
• Raise the change with the other side in writing and keep a copy.
• Speak with a family lawyer about timing, the right forms and what to do about arrears.

Frequently asked questions