Are Spousal Support payments taxable?
Yes, Spousal Support payments are taxable. Spousal Support payments are deductible for the paying spouse and are considered income for the receiving spouse, even if one or both of the spouses are married.
Can a paying spouse declare bankruptcy to avoid payment?
No. All support payments in Canada are protected against bankruptcy. Once the court orders payment that individual is responsible by law to provide that support whether it is child or spousal support.
Can one enforce payment?
The province of Ontario has instituted the Family Support Plan. This Plan is designed so all payments are received by a province run organization which then distributes the payments to the receiving parties.

 

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