Tab 7
Additional Terms: Insurance, Disclosure, Tax, and Dispute Resolution
The short stuff at the end. Worth reading — these clauses prevent expensive disputes later.
Life insurance to secure support
If one of you is paying ongoing support, the receiver wants security: what happens if the payor dies? The clause: the payor maintains a life insurance policy with the receiver as beneficiary, for at least $X. Typical amount is enough to cover the remaining years of support — 10 years of $2K/month child support equals a $240K policy. Skip this only if there are no dependents needing protection.
Financial disclosure going forward
Locks in how often you will exchange income updates after the agreement is signed. Annual exchange of tax returns and NOAs is standard. Without this, the recipient has to chase the payor for updates — exactly the dynamic the agreement is supposed to avoid.
Tax provisions
Canada Child Benefit (CCB) — who claims it. In shared parenting both parents can claim a share. In sole parenting the primary parent claims it. Eligible Dependant Credit — a tax credit one of you can claim for a child. In shared parenting, you can split children or alternate years. Spousal support tax treatment — periodic monthly support is tax-deductible for the payor and taxable for the recipient. Lump sums are not.
Dispute resolution
What happens if you disagree later. Step 1: direct conversation. Step 2: mediation (most clauses set a deadline like "we pick a mediator within 30 days"). Step 3: arbitration or court — last resort. You can also nominate a parenting coordinator — a professional who can resolve small parenting disputes without you going to mediation every time.
Ready to start your agreement?
Use the calculator to estimate support, or start a guided Ontario separation agreement now.