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You are here: Home / Blog / Impact of Retirement on Spousal Support

Impact of Retirement on Spousal Support

March 16, 2022 By Stephanie Dobson

In today’s blog we will be digging deeper into spousal support, specifically where one spouse retires.

Why does retirement matter where spousal support is being paid?

Very briefly, spousal support can be changed in one of 2 ways – either by doing a “review” of support, or a “variation” of support. 

In the context of retirement, spousal support could be “reviewed” if the court order or agreement actually states that support is to be reviewed when one spouse retires. So essentially, it’s provided for in the documentation.

For a “variation”, the applicant wanting the change would have to prove that there’s been a “material change of circumstances” since the original order was made or agreement was reached.  Retirement could certainly be considered such a material change of circumstances depending on the facts.

I thought this would be an interesting topic given that there’s a 2022 decision from the Court of Queen’s Bench of Alberta called Kelly v Gammon which addresses this very topic of the impact of retirement on support.

How do you know if retirement is actually a “material change of circumstances”

The opening question in the decision in Kelly v Gammon 2022 ABQB 57 is exactly this – the court had to decide whether retirement was reasonable in the circumstances so as to result in a material change warranting a change to spousal support.  The answer here was yes.  Allow me to explain.

In this case, the paying spouse’s income at the time of the original order was $186,000, and at the time of the original order it had been contemplated that retirement was on the horizon and that this event happening would meet the materiality test. 

The question then became: was the timing and the circumstances of the retirement defensible, or was it done to circumvent his spousal support obligation.

What goes into that defensibility of retirement?

There’s a number of cases that go into this question of defensibility.  I thought I would give a few examples of where the court has accepted retirement as reasonable:

  1. A payor’s lifelong plans for retirement – the court said in the case of Lewis v Lewis 2009 ABQB 539 that ““[t]he decision of when to retire from a life-long career is a personal matter into which the Court should not interfere without exceptional circumstances” (para 13).
  2. Evidence that the payor qualified to take their full pension – On the flip side to this, depending on the circumstances the choice to take early retirement could work against the payor looking to change support.
  3. The discussions during the relationship as to retirement plans – The court in Kelly v Gammon states (para 32) that it’s not reasonable to have had plans during the relationship to retire at a certain age, then argue that those plans are no longer reasonable post-separation.

If retirement is a “material change of circumstances” then what?

If so, then the question then becomes what to do with the support award – reduce it? terminate it? Put a limitation on it? There are a few options of course.

The question really comes down to whether the court will accept that retirement is reasonable and justified in the circumstances.  

If so, the question is what is the income of the paying spouse post-retirement, and then how much, if anything, will be payable going forward. 

If not, then the court can set an income level that it deems as reasonable for the purpose of spousal support, pretending as if the paying spouse was not retired.  The calculations for the future of spousal support can then be done.


Henka Divorce Law & Mediation is a Collaborative Law and Family Mediation firm that helps families thrive as they transition to separation, divorce, or cohabitation. Understanding that every journey is different, we guide families through the right legal or mediation process that fits their unique situation.

Our client service is built on three pillars – focusing on the future, nurturing and supporting children, and working together towards well-being. This includes considering everyone’s needs throughout the process. We work closely with families to provide a meaningful and fair resolution, while keeping costs down by staying out of court.

We serve families in Alberta and Saskatchewan, Canada through their separation or divorce by providing in-person and virtual Collaborative Law or Mediation services.

With extensive knowledge in matrimonial law, our founder Stephanie Dobson uses a caring, results-focused approach to help parents navigate a family separation or divorce while they connect with and support their children. Learn more about her approach and credentials.

As an educator, Stephanie Dobson is Founder, CEO, and Content Creator of Up A Notch Learning Inc., an e-learning platform to empower separating and divorcing families globally with a collection of positive and constructive resources. Visit our website to learn more.

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Filed Under: Blog, Separation & Divorce, Spousal Support, Written Agreements

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