Understanding Indexing Spousal Support in Ontario: Protecting Fairness Against Inflation

Understanding Indexing Spousal Support in Ontario: Protecting Fairness Against Inflation

When spousal support is ordered following a separation or divorce, the intention is to maintain financial fairness between the parties. However, over time, inflation can erode the real value of those payments. This is where indexing spousal support becomes essential.

What Is Indexing Spousal Support?

Indexing spousal support refers to the process of adjusting support payments periodically—typically once a year—to reflect changes in the cost of living. These adjustments are often tied to the Consumer Price Index (CPI), a measure published by Statistics Canada that tracks inflation based on the cost of goods and services.

The goal of indexing is simple: to ensure that the recipient of spousal support continues to receive payments that maintain their purchasing power, rather than seeing their support lose value over time.

The Legal Basis for Indexing in Ontario

Under Ontario’s Family Law Act, section 34(5)–(6), courts have the power to order that spousal support payments increase annually by an “indexing factor.” This factor represents the percentage change in the CPI for all items across Canada since the same month in the previous year.

This means that a court order for spousal support can automatically increase each year to keep pace with inflation—without either party needing to return to court to request a variation. This legislative mechanism ensures predictability, fairness, and continued adequacy of support.

How Indexing Is Applied in Spousal Support Orders

Indexing can be structured in various ways depending on the agreement or court order:

• CPI-based adjustments (national or regional)

• Fixed annual percentage increases

• Adjustments linked to the payor’s income changes

Many separation agreements include indexing clauses to ensure that spousal support adjusts automatically. This approach minimizes the need for ongoing legal intervention and reduces potential conflict between the parties.

Key references supporting this approach include the Family Responsibility and Support Arrears Enforcement Act, 1996and leading Ontario decisions such as Tompkins v. Tompkins (2021) and Nault v. Nault (2022), which reinforce the principle of fairness in maintaining the real value of spousal support over time.

Why Indexing Still Matters Today

Although indexing is less common with the advent of the Spousal Support Advisory Guidelines (SSAGs), it remains a valuable tool, particularly in cases where:

• The recipient’s income is unlikely to increase over time;

• Inflation poses a significant risk to the adequacy of payments; or

• The parties wish to establish long-term stability and avoid future litigation.

Courts continue to consider factors such as the payor’s ability to absorb inflation-related increases and the recipient’s ongoing financial needs when deciding whether to include indexing provisions.

Maintaining Fairness Through Inflation

Ultimately, indexing spousal support ensures that what was fair at the time of separation remains fair years later. By linking payments to the cost of living, indexing protects the recipient’s standard of living while reducing the administrative burden of recurring court applications.

At OneLegal Professional Corporation, we help our clients understand and negotiate fair, sustainable support arrangements that reflect both their current circumstances and their future needs.

💼 Need Guidance on Spousal Support or Family Law Matters?

Whether you are negotiating a separation agreement, seeking to vary an existing order, or unsure how inflation affects your support payments, our experienced family lawyers and mediators at OneLegal Professional Corporation can help.

📞 Contact us today to schedule a confidential consultation and ensure your spousal support arrangement is fair, future-proof, and legally sound.