Types of Spousal Support: Compensatory and Non-Compensatory
Our previous blog post on spousal support dealt with how spousal support is calculated, specifically the amount of spousal support and the duration of its payment. I also made mention to the Spousal Support Advisory Guidelines (“SSAG”) and how they influence the calculation of spousal support in Ontario.
In this post, we will be delving deeper into the different types of spousal support and how they are determined when parties separate. It will focus mostly on married spouses and on the legislation that guides how spousal support is determined. Two significant cases helped cement the two types of spousal support:
- The leading case on compensatory support: Moge v. Moge, 1992 CanLII 25, [1992] S.C.J. No. 107, 1992 CarswellMan 143; and
- The leading case on non-compensatory support: Bracklow v. Bracklow, 1999 CanLII 715, [1999] S.C.J. No. 14, 1999 CarswellBC 532.
The Legislation
S. 15.2 of the Divorce Act (“DA”), states the entitlement to spousal support.
S. 15.4 of the DA provides the factors to be considered:
(4) In making an order under subsection (1) or an interim order under subsection (2), the court shall take into consideration the condition, means, needs and other circumstances of each spouse, including
(a) the length of time the spouses cohabited;
(b) the functions performed by each spouse during cohabitation; and
(c) any order, agreement or arrangement relating to support of either spouse.
And s. 15.6 of the DA provides the objectives of a spousal support order:
(6) An order made under subsection (1) or an interim order under subsection (2) that provides for the support of a spouse should
(a) recognize any economic advantages or disadvantages to the spouses arising from the marriage or its breakdown;
(b) apportion between the spouses any financial consequences arising from the care of any child of the marriage over and above any obligation for the support of any child of the marriage;
(c) relieve any economic hardship of the spouses arising from the breakdown of the marriage; and
(d) in so far as practicable, promote the economic self-sufficiency of each spouse within a reasonable period of time [Emphasis added].
This is all well and good for married couples, but does this apply to common law spouses as well? See our previous post regarding the difference between common law and married spouses for more information.
The Common Law Spouse
The Family Law Act (“FLA”) also has spousal support provisions. S. 30 of the FLA provides the eligibility for spousal support while s. 33(8) provide the purpose for spousal support, s. 33(9) provides us with the factors to determine support, and finally s. 33(10) provides us with how spousal misconduct is factored in regarding its relevance.
Under the FLA, need is a determinative factor for awarding spousal support. It also does not require proof of economic loss or disadvantage caused by the cohabitation.
The Case Law – Moge v. Moge – Compensatory Spousal Support
Courts recognized that divorce can have economic effects on the parties, especially against the wife. Looking at the DA, Justice L’Hereux-Dube found that entitlement to spousal support is based on compensation. The language of the DA as provided above indicates that a court should look at the economic disadvantages and advantages that resulted from the marriage or separation, consider economic disadvantages resulting from caring for children outside of child support, and to alleviate financial hardship resulting from the marriage.
Spouses are obligated to become self-sufficient, but this is only one factor a court will consider. Also, compensatory support is not appropriate in every case. To determine if spousal support should fall under this category, a court will look at whether a spouse suffered financial disadvantages during the marriage while the other spouse received economic benefits. Long term compensatory support would be appropriate in these instances where a former spouse would likely continue to suffer those economic disadvantages suffered during the marriage and its dissolution.
The Case Law – Bracklow v. Bracklow – Breaking down the three types of spousal support
Here, the court recognized that the DA provides for the three types of spousal support obligations:
- Contractual
- Compensatory
- Non-compensatory
A judge would need to consider all types, and an order may even include all three, if appropriate. They further recognized that, although compensation and encouraging self-sufficiency were important elements to consider on the breakdown of a marriage, if compensation was not described, and if self-sufficiency is not possible, a support obligation may arise from the marriage relationship itself. As such, need alone may be enough to warrant spousal support. Previous to Bracklow, support had been denied because the applicant did not suffer any economic disadvantage due to the marriage.
Essentially, what this means is that a spouse does not have to prove they suffered an economic disadvantage during the marriage, indicating they should be compensated for that disadvantage. Just simply showing they need assistance with monthly bill payments, etc., now that the relationship has ended could be enough.
No Spousal support until Equalization determined
It is important to note that spousal support has to be calculated after the parties have determined the Equalization payment as failure to do so would be an error[1] (see previous blog post for more details on equalization and how it is calculated). Basically, if the equalization payment is sufficient to meet the recipient spouse’s needs, no spousal support should be awarded[2].
Summary
From this case law and the legislation, we can describe the types of spousal support as follows:
- Contractual
- What parties agree to in a contract, i.e. a separation agreement (see our previous blog post for more details on separation agreements).
- Compensatory
- Based on an economic loss suffered by one spouse due to the roles each spouse played during the marriage so that the other spouse could receive an economic benefit;
- Common elements that could result in this type of spousal support include: staying at home with children on full- or part-time basis, being a secondary earner in the home, having primary care of children AFTER separation, moving for the other spouse’s career, supporting the payor’s education or training, or even working primarily in a family business.
- Non-Compensatory
- Mostly means an inability for a spouse to meet their basic needs (monthly bills, etc.), but it can also mean that a former spouse will need to be supported now that there is a decline in their standard of living from the marital standard;
- Common elements here that could result in this type of support are: length of the relationship, drop in standard of living after separation, and the economic hardship experienced by the former spouse
This blog is intended for legal information purposes only and is not to be construed as legal advice.
[1] Greenglass v. Greenglass, 2010 ONCA 675, [2010] O.J. No. 4409, 2010 CarswellOnt 7761, var’g 2009 CanLII 39995 (S.C.J.).
[2] Linton v. Linton, 1990 CanLII 2597, [1990] O.J. No. 2267, 1990 CarswellOnt 316 (C.A.).
Net Family Property and Equalization: An Introduction
Equalization is a payment from one spouse to the other at the end of a marriage. This equalization payment ONLY applies to married spouses, not to common law spouses. S. 5(1) of the Family Law Act (“FLA“) provides for Equalization when:
- A divorce is granted;
- Marriage is declared a nullity;
- When (married) spouses are separated and there is no reasonable prospect they will resume cohabitation.
One thing I often hear clients ask is whether they have to split 50% of everything. While somewhat true, it is not entirely accurate. The real definition of division according to s. 5(1) of the FLA is as follows: “the spouse whose net family property is the lesser of the two net family properties is entitled to a one-half difference between them”.
In simpler terms, separated spouses are entitled to 50% of the value of the marriage. So how is that value determined?
Marriage and Valuation Date
First we need to understand what Net Family Property (“NFP”) is and how to calculate it. S. 4(1) of the Family Law Act defines NFP as all property that a spouse owns on the valuation date (i.e. separation date) after deducting:
- Debts and other liabilities; and
- Value of property OTHER THAN A MATRIMONIAL HOME owned on date of marriage.
Therefore we have two dates that are important in determining equalization:
- The valuation date; and
- The date of marriage.
The date of marriage is simply the date you got married and does not include any cohabitation before marriage. Spousal support may factor in cohabitation periods before marriage however. See our post on spousal support for more info by clicking here.
The Valuation date is essentially the date the marriage ended, or the date the parties separated. It is defined under s. 4(1) of the FLA as:
- The date you separate;
- Date the divorce is granted;
- Date marriage is a nullity;
- Date one of the spouses commences an application based on improvident depletion that is subsequently granted; or
- Date before the date on which one of the spouses dies leaving the other spouse surviving.
Once we have those two dates, we can begin figuring out how much your Net Family Property (“NFP”) is.
Calculating Net Family Property for Equalization
When determining the Net Family Property (“NFP”) of persons who are ending their marriage, we need to look at two important dates: the marriage date and the valuation date.
Let’s pick two dates to help figure out the NFP:
- Jane and John married on October 1, 2010;
- Separated on February 1, 2018.
That’s almost 8 years of marriage. You’ll see here that February 1, 2018 is the date of separation, which fits under the definition of Valuation date in s. 4(1) of the FLA.
Now, we take the value of all assets that both parties own on the valuation date, subtract their debts owned at valuation, and finally subtract the value of any property owned on the marriage date.
JOHN
| John’s Assets on Valuation Date | Car – $25,000
Personal Bank Account – $3,000 $4,000 in Joint account with Jane (50%) – $2,000 Investment Account ending in 1010 – $170,000 Total = $200,000 |
| John’s Debts on Valuation Date | Loan from Friend – $50,000
Total = $50,000 |
| Property Owned at Marriage | Investment Account ending in 1010 – $100,000
Total = $100,000 |
| Calculate Final Total
Assets – Debts – Property at marriage |
$200,000 -$50,000 -$100,000 |
| John’s NFP | $50,000 |
JANE
| Jane’s Assets on Valuation Date | Car – $20,000
Personal Bank Account – $2,000 $4,000 in Joint account with John (50%) – $2,000 RRSP – $6,000 Matrimonial Home – $320,000 Total = $350,000 |
| Jane’s Debts on Valuation Date | Line of Credit – $50,000
Mortgage – $100,000 Total = $150,000 |
| Property Owned at Marriage | Matrimonial Home – $220,000
Total = $220,000 |
| Calculate final total:
Assets – Debts – Property at marriage |
$350,000 -$150,000 can’t subtract Mat Home |
| Jane’s NFP | $200,000 |
So, something interesting happened here. Jane’s name is the only one on title to the home and it was valued at $220,000 when they got married. She should be able to deduct that home from the valuation date value right?
Wrong.
Remember, you subtract property owned at the date of marriage from your valuation date EXCEPT for the matrimonial home. So Jane has to include the entire value of the home regardless of how much it was worth at marriage.
We’re almost there. The language of the equalization rule is: “the spouse whose net family property is the lesser of the two net family properties is entitled to a one-half difference between them.”
EQUALIZATION
| Jane’s NFP
– John’s NFP |
$200,000
-$50,000 |
| $150,000 | |
| Difference divided by 2 | $150,000/2 |
| Equalization Payment or, the one half difference | $75,000 |
In this instance John, who is the lesser of the two net family properties, is entitled to the one half difference between them, $75,000.
Therefore Jane makes an equalization payment of $75,000 to John. With that, John would have $125,000 and Jane would have $125,000. They are equalized.
Additional Exclusions
You also have the ability to exclude other property on the valuation date other than just debts under S. 4(2) of the Family Law Act.
These include things such as:
- Property acquired by gift or inheritance after marriage date
- Income from property that was gifted or inherited if donor EXPRESSLY stated it is to be excluded from NFP
- Damages from a settlement resulting from personal injuries, nervous shock, mental distress, or loss of guidance care and companionship
- Proceeds or right to proceeds of life insurance policy payable on death of insured
- Property OTHER THAN MATRIMONIAL HOME into which property above can be traced
- Property both spouses agree not to include as a result of a domestic contract (see our post on separation agreements for more info)
- Unadjusted pensionable earnings under Canada Pension Plan
If you’re thinking of separating and want help to ensure you are properly protected, contact Rabideau Law to see how we may assist.
Spousal Support: The Spousal Support Advisory Guidelines
Spousal support is often a very contentious issue on separation as it has a much more subjective approach than child support. A lot more factors go into determining a spousal support amount and there is no hard and fast rule on how it is to be calculated. The government has provided a set of guidelines called the Spousal Support Advisory Guidelines (“SSAG”), but not even this is followed strictly. Sometimes a judge may just pick a number they feel is appropriate having looked at all the factors.
What will follow is an overview on how spousal support is generally approached via the SSAG so that you have a good background on the general principles behind its calculation.
Under the SSAG there are two ways of calculating spousal support: the with child support formula and the without child support formula.
Please keep in mind that the following examples are not accurate calculations but approximations for educational purposes.
With Child Support Formula
With this formula, you look at the following factors:
- Gross income
- Child support being paid
- 7 expenses being paid
- Taxes and other deductions
- Government Benefits and credits
- Length of the marriage and/or cohabitation
- Age of children
- Recipient needs
- Ability of payor to pay
What we need to do is look at the amount that should be paid and how long it should be paid. When calculating spousal support you usually come up with a range and determine where in that range you should fall.
Step 1: Calculating the spousal support amount
Start by determining your gross income, which is your income before taxes and other deductions are applied. Then you subtract child support (or add it if you are the recipient), taxes and other deductions. Finally, you add back any government benefits and credits that may apply. This initial calculation will provide you with your Individual Net Disposable Income (“INDI”). See the example below for a couple with 2 children who cohabited for 2 years before being married for 10 years.
| Malik’s Monthly Gross income | $125,000/12
=$10,417 |
| Child support for 2 children in Ontario (see post on child support for information on how to determine child support) | $1,777 |
| Taxes paid ~30% | $10,417*30% = $3,125 |
| Malik’s INDI Calculation
Monthly Gross income -Child support -Taxes (No benefits or credits to apply) |
$10,417 -$1,777 -$3,125 $0 $5,515 |
Malik has an INDI of $5,515. Next we move on to the recipient, a similar formula with a little bit of a difference.
| Nubia’s Monthly Gross income | $50,000/12
= $4,167 |
| Child support received | $1,777 |
| Taxes paid ~20% | $4,167 * 20% = $833 |
| Benefits Recieved | $651 |
| Nubia’s INDI Calculation
Monthly Gross income + Child support -Taxes + Benefits and Credits |
$4,167 $1,777 -$833 $651 $5,762 |
With both INDI’s known we add them together: $5,515 + $5,762 = $11,277 total
Since Nubia has both children living with her, Malik pays spousal support that would put Nubia within the 54-60% range of the total (note: this number changes depending on how many children are living with the recipient, if it was only one child the recipient might receive anywhere from 45-50% of the combined INDI). For example:
- Nubia is the recipient
- 54-60% of $11,277 = $6,089 to $6,766
We now subtract Nubia’s INDI from these amounts to see what spousal support could be paid:
- $6,089 – $5,762 = $327
- $6,766 – $5,762 = $1,004
Nubia’s spousal support could then range from $327 to $1,004 monthly in order to bring her to that 54-60% share. We use the factors mentioned above to determine where in that range she should fall and this is done on a case by case basis with need being one of the most important factors.
How long is spousal support supposed to be paid?
The upper part of the range is the length of the marriage or the date the last or youngest child finishes high school; the lower range is half the length of the marriage or the date the youngest child starts full time school. Generally, only the length of the relationship is used and I will continue with that in mind. We could simplify as follows: length of marriage * 0.5-1. For Nubia and Malik’s relationship of 12 years, that would be a range from 6-12 years.
All this does is give us another set of ranges to make a decision with. So how do we know WHERE within the range we should ultimately be?
There are multiple factors that are considered to determine where to fall within the range. These can include:
- Compensatory claims
- The recipient needs (limited income earning capacity or age a factor here)
- Age, number, needs and standards of living children. Are there any special needs?
- Needs and ability to pay of Payor
- Consider meaningful access by Payor
- Work incentives for Payor
- Consider net income and out of pocket costs
- Property division and debts
- Self-sufficiency incentives
- Compelling Financial Circumstances
- Debt payment – used where negative net worth and one spouse paying disproportionate share
- Prior support obligations
- Illness and Disability
For example, if there are no special needs of the children, Malik has no concerns regarding his ability to pay, he has no other support obligations, and Nubia has no significant need for the money, Nubia would likely receive the lower end of support being 6 years. Again, this is all hypothetical and each situation can vary. Also, there are different formulas depending on whether there is shared custody, split custody, step children, adult children and more.
Without Child Support Formula
This is similar to the with child formula as you start with the same values. How you calculate the actual payment is different though. The range here is 1.5-2%, times the income difference between the spouse’s gross income, times the years of cohabitation to a maximum of 50% of that income difference.
Here is what that looks like:
| Malik’s Gross income | $10,417 |
| Nubia’s Gross Income | $4,167 |
| Income Difference | $10,417
– $4,167 $6,250 |
| Years of cohabitation | 2 years cohabited
10 years married 12 years total cohabitation |
Notice here we do not subtract any taxes or any other deductions here. We now have the numbers we need in order to perform the next step of the calculation (note that this is just one method of doing the calculation):
- Convert the percentages into decimals: 1.5% = 0.015 and 2% = 0.02
- Multiply these decimals by the difference in income
- 0.015 * $6,250 = $94
- 0.02 * $6,250 = $125
- Finally, multiply these final numbers by the years of cohabitation:
- 94 * 12 = $1128
- 125 * 12 = $1500
This gives you a range of spousal support to be paid from $1128 to $1500 monthly. Alternatively, you could multiply 1.5-2% by the years of cohabitation then just multiply those numbers by the income difference and you would reach the same result.
Isn’t math fun?
Is the duration or payment different with this formula?
Somewhat. The duration is 0.5 to 1 for each year of cohabitation only (no child factors to consider here). Duration is indefinite if the marriage is 20 years or longer, OR if the marriage lasted 5 years or longer when years of marriage and age of support recipient at separation total 65 or more.
So in our example the range is from 6 years to 12 years of support payments.
Otherwise the same factors mentioned above that can affect the duration of support can apply here as well.
Is there a deadline to Apply for Spousal Support?
Under s. 16(1)(c) of the Limitation Act, there is no deadline (or limitation period) to apply for spousal support. However, need is a prominent factor in determining how much support to award. If a spouse waits too long and a court deems that they are financially stable enough to not need support, it may not be awarded at all.
If you have any questions or concerns regarding support in your circumstances, give the experts at Rabideau Law a call to see how we can help.
The Estate Trustee’s tasks during the Administration of an Estate
Today’s post highlights some important items that an Estate Trustee must turn his or her attention to during the administration of an Estate.
In a nutshell, an Estate Trustee’s role includes tasks such as gathering and managing assets, paying debts and expenses, locating the beneficiaries an distributing the estate to those entitled. However, from start to finish, there are multiple items to be taken care of by the Estate Trustee – some simple but others which can be appear more daunting to the unfamiliar. Listed below are some of these tasks:
Certificate of Appointment: depending on the assets that form a part of the estate, an Estate Trustee may be advised that he or she is required to ‘probate’ a Will which is the process of obtaining formal authorization from the Court. This authorization is formally known as the Certificate of Appointment of Estate Trustee and essentially confirms that based on the information provided, the Will, if one was submitted, would be deemed to be the last known Will of the deceased and lists the appropriate individual(s) as the proper personal representatives of the estate. A similar authorization exists if there was no Will to begin with. In order to prepare this application, it will be important to ascertain value of the estate. There are various rules in relation to which assets form a part of the estate and those that are exempt which are important know as they impact the amount of estate administration tax that may be payable into the court. Along with all this, proper notice is required to be provided to those entitled to the estate.
Income Tax: The Income Tax Act of Canada provides that when an individual dies, there is a “deemed disposition” of assets which may give rise to capital gains (or losses) as at the date of death. To determine these figures, an inventory of assets is crucial along with filing the necessary tax returns – and the estate trustee may be required to file the following returns:
- T-1 General return – if the deceased had not filed for previous taxation year(s);
- T-1 Terminal return – covers the year of death;
- T-3 Estate return – this covers income received from any estate assets including interest earned
- Final distribution returns
- Designation of an estate as a Graduated Rate Estate, if applicable, which is entitled to marginal tax rates.
Clearance Certificates: before making final distributions to the beneficiaries, it is important to obtain a Clearance Certificate from the Canada Revenue Agency. The Estate Trustee risks personal liability in relation to the distributions made if it is found later that there are taxes owing which were to be paid. Obtaining this certificate provides assurance to the Estate Trustee that no additional tax is payable.
As one can imagine, a number of other tasks need attention, such as:
- Searches in relation to any judgments owing in the deceased’s name
- Preparation of Estate Accounts
- Preparation of Statement of Accounts as well as releases from Beneficiaries
- Preparing necessary notice to creditors
- And many more…
As an estate trustee, you are entitled to claim compensation in connection with time spent during estate administration. The calculation is based on a percentage of the estate and depends on the nature of the work involved and the amount is usually determined after the estate administration is completed.
It is highly advised that if you have been appointed as an Estate Trustee or want have such an appointment made by the courts, you speak to a professional to gain a clearer understanding of the nature of the role.
This content is only for information purposes and does not constitute legal advice and should not be relied on as such. Please speak to a lawyer for more details.
Rabideau Law Food Drive 2017
Rabideau Law’s November Food Drive in support of The FoodBank of Waterloo Region
We are proud to announce that we will be holding a Food Drive from November 1st-27th in support of The FoodBank of Waterloo Region, and in the spirit of GivingTuesday.
What is GivingTuesday?
As stated on the GivingTuesday Waterloo Region website:
“Tuesday, November 28th is GivingTuesday, a day for businesses, individuals, groups and charities to join together to rally for favourite causes, create opportunities and share meaningful experiences. Whether it’s raising awareness, volunteering or fundraising, GivingTuesday is our day to celebrate the importance and impact of giving back.
Just as Black Friday kicks off the holiday shopping season, GivingTuesday marks the start of the giving season. What started four years ago in New York is now becoming a global movement that has reached 68 countries. In 2014, Vancouver, Regina, Guelph, Ottawa, and Halifax launched their charitable campaigns. The GivingTuesday Waterloo Region movement began in 2015.”
To work our Food Drive in with GivingTuesday, we will be going to visit The Food Bank on November 28th to deliver the donations we have collected over the month.
Why should you donate?
• The Food Bank serves a Community Food Assistance Network of more than 80 agencies and community food programs. 2,000 meals are served daily by this Network.
• 49% of households seeking assistance are families with children.
• Just $1 will provide 3 meals.
• 215 food hampers are distributed every day.
• Community nutrition workers teach healthy eating and food budgeting skills at 16 different locations.
• 1 in 20 households in Kitchener-Waterloo are hungry.
How can you help?
• Make a donation
$20 will feed a family for 4 days
Tax refunds are available for donations
• Donate food
Most needed items include:
o Canned stews and chili
o Canned meat and fish
o Beans in sauce
o Tomato sauce
o Canned pasta
o Canned soup
o Canned fruit
o Dried beans
o Hot cereals
o Rice
Donations will be accepted at our office, 501-305 King St W, Kitchener.
To make things interesting this year, the office has been split into three teams, each led by one of our lawyers. The two losing lawyers will participate in a lip syncing contest at the end of the food drive which will be posted to our social media! Only food donations will be used towards saving the lawyers, cash donations will be put in a donation jar towards the Food Bank’s new food processing room in their warehouse.
When making your donations, be sure to let us know whether your donation will be going towards saving Geoff, Varun or Roger!
If you have any other questions, feel free to contact Kayla at kkompter@rabideaulaw.ca
Rabideau Law’s February Potato Blitz in support of House of Friendship
We are proud to announce that we will be holding a Potato Blitz from February 1st-28th in support of House of Friendship.
What is a Potato Blitz?
Over twenty years ago, House of Friendship (HOF) Board Members decided to host a potato blitz in February to help meet the need for potatoes throughout the year in emergency food hampers and program meals. Today, the campaign raises potatoes and donations equivalent to 300,000 pounds of potatoes. Potatoes are used for hampers and meals, and donations are used to buy more potatoes.
This fun campaign kicks off with Don Cameron Potato Night with the Kitchener Rangers, when fans donate money and spuds at the door. It is followed by a one-day Supermarket Blitz on a Saturday at most local grocery stores, where volunteers invite shoppers to donate money and spuds.
And the campaign wraps up with a Community Potato Lunch hosted by HOF, at which guests enjoy a delicious offering of potato dishes (no tickets required – free-will offering accepted), and where we have the opportunity to thank many volunteers and sponsors. Over 200 volunteers roll up their sleeves to help campaign mascots Spuddy and Sweet Potato.
At Rabideau Law we will be acting as a drop-off point for donations, as well as holding our own contest within the office to collect the most potatoes!
Why should you donate?
- House of Friendship’s Charles Street Mens Shelter houses up to 51 men per night
- They send out over 28,000 emergency food hampers to local individuals and families annually
- Over 550 men and women annually turn to House of Friendship’s addiction treatment programs
- Over 120 kids from families living on low-income play, learn and grow at House of Friendship’s summer camp each year.
How can you help?
- Make a donation
Tax refunds are available for donations - Donate potatoes
Donations will be accepted at our office, 501-305 King St W, Kitchener.
If you have any questions, feel free to contact Kayla at kkompter@rabideaulaw.ca
Rabideau Law Food Drive 2016
Rabideau Law’s November Food Drive in support of The Food Bank of Waterloo Region
We are proud to announce that we will be holding a Food Drive from November 1st-28th in support of The Food Bank of Waterloo Region, and in the spirit of GivingTuesday.
What is GivingTuesday?
As stated on the GivingTuesday Waterloo Region website:
“Tuesday, November 29th is GivingTuesday, a day for businesses, individuals, groups and charities to join together to rally for favourite causes, create opportunities and share meaningful experiences. Whether it’s raising awareness, volunteering or fundraising, GivingTuesday is our day to celebrate the importance and impact of giving back.
Just as Black Friday kicks off the holiday shopping season, GivingTuesday marks the start of the giving season. What started four years ago in New York is now becoming a global movement that has reached 68 countries. In 2014, Vancouver, Regina, Guelph, Ottawa, and Halifax launched their charitable campaigns. The GivingTuesday Waterloo Region movement began in 2015.”
To work our Food Drive in with GivingTuesday, we will be going to visit The Food Bank on November 29th to deliver the donations we have collected over the month.
Why should you donate?
- More than 34,000 men, women and children received food assistance last year in Waterloo Region.
- People seek food assistance because of unexpected job loss, physical or mental health concerns, or other crises.
- 49% of households seeking assistance are families with children.
- Just $1 will provide 3 meals
How can you help?
- Make a donation
$20 will feed a family for 4 days
Tax refunds are available for donations - Donate food
Most needed items include:- Peanut Butter
- Canned Fruit and Vegetables
- Canned Meat and Fish
- Canned Stews and Chili
- Beans in Sauce
Donations will be accepted at our office, 501-305 King St W, Kitchener.
To make things a little more interesting—and of course raise as much for The Food Bank as possible—we’ve split the office into two teams.
Will your donations go to Team FullBelly (Geoff Rabideau’s team) or the Pantry Packers (Varun Sharma’s team)?
Full team lists are on our Facebook page
If you have any other questions, feel free to contact Kayla at kkompter@rabideaulaw.ca
How to Fight your Property Tax Assessment
Property taxes are a significant cost to owning a home, and no one likes to see their tax bill going up. But did you know that you can dispute your property assessment and have it reconsidered?
There are two ways to have your property assessment reconsidered – by submitting a Request for Reconsideration (RFR) with the Municipal Property Assessment Corporation (MPAC) or by filing an appeal at the Assessment Review Board. This blog post will focus on the Request for Reconsideration process. The Assessment Review Board appeal process will be covered in a future post.
A RFR may be time-consuming to complete, but the process is free and the potential tax savings are worth it. Just note that for the 2014 tax year, your deadline to file a RFR with MPAC is March 31, 2014.You may file a RFR every tax year.
Understanding your Property Assessment
The first step in disputing your taxes is understanding how the Municipal Property Assessment Corporation (MPAC) made their original assessment. There two ways to do this, both of which are free.
If you contact MPAC (1-866-296-6722) a representative will review the information they have on file for your property, answer general questions you have about your assessment, and if necessary, make corrections.
Alternatively, MPAC’s website, www.aboutmyproperty.ca, is a self-service tool that lets you look up your property assessment information, and recent sales information for similar properties in your neighbourhood. You may correct errors in the assessment information and submit a Request for Reconsideration directly from the ‘About My Property’ website.
Registering for ‘About My Property’
If it is your first time using the ‘About My Property’ website, click the “Register Now” link. To register, you will need your property’s 19-digit roll number and access key, both of which appear on your most recent Property Assessment Notice. If you own multiple properties, each property will need to be registered separately.
No Roll Number or Access Key?
If you do not have your most recent Property Assessment Notice and do not know the roll number or access key, first obtain the roll number by calling your municipality’s Property Tax or Revenue Division. For Kitchener, Waterloo, and Cambridge, the contact numbers are as follows:
City of Kitchener Revenue Division: 519-741-2450
City of Waterloo Revenue Services: 519-747-8718
City of Cambridge Property Taxes: 519 740-4524
After you get the roll number, call MPAC at 1-866-296-6722 to get assistance with registering for ‘About My Property’. Please note that you must have the roll number when you call MPAC.
Using ‘About My Property’ to Obtain Assessment Information
Answers to common questions on how to use ‘About My Property’ are available at:
https://www.mpac.ca/HowAssessmentWorks
From ‘About My Property’, you may obtain a Detailed Property Profile Report, which contains all of the assessment information that MPAC has on file for your property. The website also allows you to obtain assessment and sales information for up to 24 properties of your choice and 6 similar properties selected by MPAC, for free.
Submitting a Request for Reconsideration
If you want to dispute your property assessment, you may submit a Request for Reconsideration from ‘About My Property’, at no charge. In the RFR form, you must set out the grounds on which you are disputing the assessment. It is important to include supporting documentation, such as pictures of the property, a copy of a home appraisal report from your mortgage lender, and sales data from similar properties. You should make the most of the free assessment and sales information that is available on ‘About My Property’ before starting the RFR form.
Some of the grounds for submitting a RFR are:
- The assessed value of your property is quite different from similar properties in the area
- MPAC’s records are incorrect – for example, the lot or building size is overstated
- The property was purchased close to MPAC’s valuation date, and the purchase price is a significantly different amount than the assessed value
- There are unique factors that negatively impact the property’s current value, which were not taken into consideration in the current assessment, e.g. the property is located on major, high-traffic road, while the comparable properties are on quiet streets.
MPAC will review your RFR submission and provide a written response, setting out its reasons. You can review the status of your RFR from ‘About My Property’. If you are unhappy with MPAC’s decision, you have 90 days from the decision date to file an appeal with the Assessment Review Board. The appeals process will to be discussed in a future blog post.