Canada Judgment

Supreme Court of British Columbia

Lindstrom v. Lindstrom

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Source document

01

Holding and result

Because the applicant demonstrated a material deficiency between her income and reasonably assessed needs and because the respondent had sufficient net income after accounting for tax treatment of benefits, an interim spousal support award of $1,100 per month was justified given the 29-year marriage and the objective of preserving some standard of living pending final resolution.

Court disposition

Interim spousal support awarded to Linda Rose Lindstrom.

Orders

  • Respondent to pay interim spousal support of $1,100.00 per month commencing March 1, 2001.
  • Applicant awarded costs on Scale 3 in any event of the cause.

02

Material facts

Parties

ROBERT DAVID LINDSTROM

Plaintiff Counsel: D.B. McGaughey

LINDA ROSE LINDSTROM

Defendant Counsel: J.L. Anderson as agent for M. Gaudreau

Amounts and remedies

  • Ms Net Basic Need Monthly: CAD 1,600
  • Ms Net Basic Need Monthly Grossed for Tax: CAD 1,900
  • Mr Net Need Monthly (assessed): CAD 2,500
  • Ms Combined Annual Income: CAD 12,325
  • Ms Annual Need: CAD 22,800
  • Ms Annual Deficiency: CAD 10,475
  • Ms Monthly Deficiency Rounded: CAD 875
  • Interim Spousal Support Awarded Monthly: CAD 1,100

03

Procedural history

  1. Posture

    Family Law Spousal Support / Interim Application for Spousal Support

04

Questions and positions

Legal issues

Party arguments

Applicant
Applicant (Ms. Lindstrom) argued entitlement to interim support based on a 29-year marriage, limited current earnings and calculated monthly basic need of $1,600 (grossed to $1,900) and an annual need of $22,800, producing an annual deficiency of $10,475 (approximately $875 per month). She sought interim assistance to maintain standard of living during proceedings.
Respondent
Respondent (Mr. Lindstrom) did not dispute entitlement but challenged quantum, emphasizing limited income comprised of CPP disability (taxable) and non-taxable WCB pension, contested some claimed expenses and deductions, and argued his net need and tax consequences of payments should limit the award.

05

Court’s reasoning

  1. 01

    British Columbia family law practice and precedent (Supreme Court of BC) case law principles

    Interim spousal support is determined by comparing parties' needs and means and considering the length of the marriage and standard of living

  2. 02

    Relevant pension and tax jurisprudence and practice (CPP and Workers' Compensation considerations)

    Tax characterization of income and the deductibility of support payments affect calculation of payer's net ability to pay

06

Ratio, limits and disposition

Ratio decidendi

Because the applicant demonstrated a material deficiency between her income and reasonably assessed needs and because the respondent had sufficient net income after accounting for tax treatment of benefits, an interim spousal support award of $1,100 per month was justified given the 29-year marriage and the objective of preserving some standard of living pending final resolution.

Obiter and limits

  • Master commented on grossing up needs for tax purposes when relevant
  • Master noted uncertainty in some of the parties' stated debts and payments and adjusted assumed payments in assessing net needs
  • Costs were awarded on Scale 3 in the absence of offers or arguments to the contrary

Court disposition

Interim spousal support awarded to Linda Rose Lindstrom.

  • Respondent to pay interim spousal support of $1,100.00 per month commencing March 1, 2001.
  • Applicant awarded costs on Scale 3 in any event of the cause.

Source and reliance status

Supreme Court of British Columbia · 16 March 2001

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Judgment text

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Source document

Supreme Court of British Columbia

Judgment· 16 March 2001

2001 BCSC 414

2001BCSC0414 Citation: Lindstrom v. Lindstrom Date: 20010316 2001 BCSC 414 Docket: 12288 Registry: Prince George

IN THE SUPREME COURT OF BRITISH COLUMBIA BETWEEN:

ROBERT DAVID LINDSTROM

PLAINTIFF AND:

LINDA ROSE LINDSTROM

DEFENDANT

REASONS FOR JUDGMENT

OF

MASTER BAKER Counsel for the plaintiff: D.B. McGaughey Counsel for the defendant: J.L. Anderson as agent for M. Gaudreau Date and Place of Hearing: March 6, 2001 Prince George, BC [1] This is an application by Ms. Lindstrom for interim spousal support. Mr. Lindstrom does not argue Ms. Lindstrom's entitlement, but disputes the quantum that she seeks. [2] By way of brief background, Mr. and Ms. Lindstrom married in January 1971 and separated in June of 2000; in other words they lived together more than 29 years. During that time they had two children, both now adult and independent. Ms. Lindstrom had worked before the marriage, but was a homemaker for the first 16 years of her marriage to Mr. Lindstrom. She then re-entered the workforce first as a cook (1989 - 1993) and then as a baker (1995 - current) on a part-time basis. She has taken two computer courses to upgrade her skills, and has some bookkeeping experience, but the prospect of an increase in her current income is unlikely during the anticipated life of an interim order. [3] Mr. Lindstrom worked during the marriage, but suffered injuries, such that his income now is entirely comprised of pension benefits. He receives approximately one-half of his income by way of Canada Pension Plan disability benefits, and approximately one-half by way of non-taxable Workers' Compensation pension payments. It was, in part, this mixture

of taxable and non-taxable income that caused me to reserve and consider the effect on Mr. and Ms. Lindstrom's respective income that any support payments would cause. [4] The parties, of course, have each presented sworn property and financial statements and have submitted to challenges to the sums set out in those statements. Having considered the arguments of counsel, and having myself reviewed their respective lists, it is my view that Ms. Lindstrom's net basic need is $1,600.00 per month which can be grossed up for tax purposes to approximately $1,900.00. [5] I have calculated Mr. Lindstrom's net need as approximately $2,500.00. This sum assumes certain deductions from the sums presented or, in the case of various debt payments, assumes reduced monthly payments (his list presumes, for example, annual payment of fully one-half of his Royal Bank line of credit) or duplication of other expenses (as is likely in the case of his Visa debt). [6] Ms. Lindstrom's combined annual earnings, employment insurance benefits, and interest income are $12,325.00. In my view she needs at least $22,800.00 per annum, so that she needs, in addition to her own income, $10,475.00 per year, or $872.90, rounded to $875.00 per month. [7] If Mr. Lindstrom were required to pay $900.00 per month spousal assistance, and assuming that the deductibility of that sum applies only to his CPP benefits,

leaving his WCB pension unaffected, his net monthly after-payment income would be approximately $2,900.00. Since that exceeds Mr. Lindstrom's basic needs, and given that this is a very lengthy marriage, my conclusion is that the appropriate sum of interim spousal support is $1,100.00 per month. I realize that this is in excess of the basic needs of Ms. Lindstrom, but given the length of the parties' marriage (29 years), she is entitled to some interim assistance that may go toward standard of living. Payments will commence March 1, 2001. [8] Costs were not addressed during the application, nor was the right to address the issue reserved by counsel. I am unaware of any offers or arguments therefore that would dis-entitle Ms. Lindstrom to her costs. In the absence of any offers, Ms. Lindstrom shall have her costs on Scale 3 in any event of the cause. "Master D.C. Baker" Telephone authorization for release March 16,2001.

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