When spousal support is set with No Variation or Indexing, it means that the amount of spousal support will remain fixed and unchanged throughout the duration of the support period. This provision ensures that neither party can request a change in the spousal support amount, regardless of changes in financial circumstances, cost of living, or other economic factors.

Definition:

• No Variation: The spousal support amount is fixed and cannot be changed or adjusted by either party during the support period. This applies even if there are significant changes in income or personal circumstances for either party.
• No Indexing: There will be no adjustments to the spousal support amount based on inflation, cost of living, or any other indexing factor. The agreed-upon amount remains the same for the entire duration.

When to Use:

• This option is typically used when both parties prefer certainty and predictability in the support arrangement. It is often selected when the payor’s income is stable, and both parties agree that the fixed amount is fair and sufficient for the entire period.
• It may also be used in shorter-term spousal support agreements where indexing or variation is unnecessary due to the limited duration of the payments.

Example:

• A separation agreement specifies that spousal support payments of $1,500 per month will be made for a period of 5 years. With the No Variation or Indexing provision, the payments will remain at $1,500 per month for the entire 5-year period, regardless of inflation or changes in either party’s financial situation.

Benefits:

• Certainty: Both parties know exactly what the spousal support payment will be over the entire period, allowing for better financial planning and stability.
• Simplicity: No need for future adjustments, recalculations, or disputes over changes in income or cost of living, making the agreement easier to manage.
• Finality: This provision provides a sense of closure, as both parties agree to a fixed amount without the possibility of revisiting the spousal support arrangement in the future.

Considerations:

• No Adjustments: Since no changes can be made, this option might not be suitable if either party expects significant changes in financial circumstances, such as job loss, retirement, or increased cost of living.
• Risk: The recipient may be disadvantaged if inflation significantly reduces the value of the fixed support payment over time, while the payor may find it difficult to sustain payments if their financial situation worsens unexpectedly.

Why This Matters:

Choosing No Variation or Indexing provides predictability and simplicity, ensuring that both parties can rely on a fixed spousal support arrangement without concerns about future changes. However, it also requires careful consideration of potential long-term financial changes, as neither party will have the option to adjust the support amount.