Spousal Support: Costs Upon Default

The Costs Upon Default provision addresses what happens if the payor fails to make the required spousal support payments as outlined in the separation agreement or court order. This provision sets out whether the recipient is entitled to recover any costs incurred as a result of the default, such as legal fees or collection costs.

Options:

1. Yes:

   • Definition: Selecting Yes means that if the payor defaults on spousal support payments, the recipient is entitled to recover the costs incurred due to the default. These costs may include legal fees, administrative fees, or costs associated with pursuing enforcement through a government agency like the Family Responsibility Office (FRO).
   • When to Use: This option is used when both parties agree that the payor should be responsible for any additional costs the recipient incurs if support payments are not made on time.
   • Example: If the payor fails to make a monthly support payment and the recipient must seek legal assistance or enforcement through the FRO, the payor may be required to cover those legal or administrative costs.
   • Benefits: This provision incentivizes the payor to make timely payments, as failure to do so will result in additional financial consequences beyond the missed payments. It ensures that the recipient is not burdened with extra costs when pursuing enforcement.
   • Legal Implications: The agreement should clearly define the types of costs that can be recovered and the process for determining the amount of those costs.

2. No:

   • Definition: Selecting No means that if the payor defaults on spousal support payments, the recipient is not entitled to recover any costs incurred as a result of the default. The recipient would need to bear the expenses of pursuing enforcement on their own.
   • When to Use: This option may be chosen when both parties prefer to keep enforcement costs separate from the spousal support obligations or when the potential for default is not a significant concern.
   • Example: If the payor misses a payment and the recipient incurs legal fees to enforce the support order, those costs would not be recoverable, and the recipient would be responsible for covering them.
   • Benefits: Simplifies the arrangement by avoiding the need to calculate or dispute additional costs in the event of default. However, it may place a financial burden on the recipient if enforcement becomes necessary.

Why This Matters:

Including a Costs Upon Default provision helps ensure that the payor understands the financial consequences of failing to meet their support obligations. By selecting Yes, the recipient is protected from incurring extra costs if enforcement is needed, while selecting No simplifies the arrangement but may leave the recipient responsible for those costs.