In Marasse Estate (Re), 2017 ABQB 706 (CanLII), the Court of Queen’s Bench of Alberta recently ordered a man to make ongoing support payments to his dead spouse’s estate.

In that case, Tracy and Jean were married in October, 1998.  They separated in April, 2012.  A divorce was granted in March, 2015.

Tracy and Jean entered into a Separation and Property Agreement (“the Agreement”) in October, 2014.  Both Tracy and Jean were represented by counsel.

The Agreement dealt with all issues of spousal support and the division of property.  It provided that Jean was to pay support to Tracy in the amount of $3,000 per month, for 60 months.  Jean’s obligations were secured by a policy of insurance in the event that Jean died before full payment was made.  The Agreement provided that it was non-reviewable by the Court, and that it was binding on and would inure to the benefit of the estate of the parties.  It was otherwise silent with respect to what would happen in the event that Tracy was to die before all payments were made.

Tracy, who was ill at the time of the negotiation of the Agreement, died in June, 2015.  At the time of her death, only 8 of the 60 support payments had been made.

Tracy’s Estate Trustee brought a claim for the payment of the balance of the support payments.  Jean opposed, arguing that:

(a)        as Tracy died, there was no longer economic need on Tracy’s part; and

(b)       Tracy’s right to support was personal to her.

The Court disagreed, finding that it was not clear that the support was “non-compensatory”.  Nothing in the Agreement specifically addressed the conceptual basis for the support payments.

The Court held that the entitlement to support payments was contractual in accordance with the Agreement.  While a claim for spousal support under statute may die with the Claimant, contractual rights do not necessary suffer the same fate.

The Court did not order a lump sum payment of the total of the outstanding payments, but rather, declared that Jean’s obligation to make ongoing payments to Tracy’s estate continued.

Have a great weekend.

Paul Trudelle