Yes:
Definition: Selecting Yes means that spousal support payments will be subject to review and possible variation when the payor retires. This review allows for adjustments to reflect the payor’s new financial situation after retirement, typically when their income decreases due to leaving the workforce.
When to Use: This option is commonly used in long-term support agreements where the payor’s retirement will significantly affect their financial ability to continue making spousal support payments at the same level.
Example: If the payor retires and begins receiving a pension or other retirement income, spousal support payments may be reduced to reflect the lower income level.
Benefits: This provision ensures fairness by adjusting spousal support to match the payor’s financial capacity after retirement. It protects the payor from being obligated to continue high levels of support when their income is significantly reduced.
Legal Implications: The agreement should specify the process for initiating a review upon retirement and outline the factors that will be considered in determining any variation in support. These factors may include the payor’s retirement income, assets, and overall financial stability.
No:
Definition: Selecting No means that spousal support payments will not be subject to review or variation when the payor retires. The payments will continue as originally agreed upon, regardless of the payor’s change in income due to retirement.
When to Use: This option may be appropriate when both parties agree that spousal support should remain fixed, even after the payor retires, or when the retirement is not expected to significantly impact the payor’s ability to continue making payments.
Example: Even after the payor retires and their income decreases, the spousal support payments will continue at the same level without any modification.
Benefits: Provides predictability and simplicity by maintaining the spousal support arrangement as originally agreed, avoiding the need for future reviews or modifications based on retirement.
Legal Implications: By selecting No, both parties agree that the spousal support arrangement will remain unchanged, even if the payor’s income decreases due to retirement. The payor would need to continue meeting their support obligations as per the original agreement.
Including a Variation of Support on Retirement provision allows both parties to prepare for the financial impact of retirement on spousal support. Selecting Yes provides flexibility and fairness by adjusting support based on the payor’s retirement income, while selecting No ensures predictability by keeping support payments fixed.