In considering whether to make an award of lump sum spousal support, a court must weigh the perceived advantages of a lump sum award against any disadvantages. This is a very fact-specific inquiry. See Davis v. Crawford 2011 ONCA 294 (CanLII) at paras. 51-76. Important considerations include: (a) the payor’s ability to pay without undermining the payor’s future self-sufficiency; (b) whether there are reasons to terminate ongoing contact between the parties; (c) whether the dependent spouse has an immediate need for capital; (d) whether there is a real risk of non-payment of periodic support; (e) whether there will be a lack of proper financial disclosure; (f) whether the payor has the ability to pay a lump sum but not periodic support; (g) whether an award of retroactive spousal support would be satisfied by a lump sum award; (g) whether there is a real possibility that the means and needs of the parties will change over time, leading to the need for a variation; and (h) the difficulties in calculating an appropriate lump sum award instead of periodic support. A lump sum may be made to relieve against financial hardship, but it should not be made in the guise of support for the purpose of redistributing assets.
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