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⭐Lawyer s Guide. Maintenance Enforcement Program
Lawyer s Guide. Maintenance Enforcement Program
Download "Lawyer s Guide. Maintenance Enforcement Program"
Cora Shelton
1 Maintenance Enforcement Program Lawyer s Guide Section I Program Basics 1.1 Mission 1.2 Role 1.3 Registration Clause Section II Enforceable Orders and Agreements 2.1 Court orders 2.2 Agreements 2.3 Provisional orders 2.4 Minutes of settlement and other settlement agreements 2.5 Variation orders 2.6 Variation agreements Section III Drafting Maintenance Orders 3.1 Maintenance terms 3.2 Recipients 3.3 Commencement dates 3.4 Due dates 3.5 Periodic maintenance and variable orders 3.6 Amount towards arrears 3.7 Conditions of eligibility and terminating events 3.8 Global orders Section IV Ensuring That an Additional Expenses Provision is Enforceable 4.1 Enforceable expense provision clauses 4.2 Proportionate expense clauses 4.3 Fixed additional expenses amounts 4.4 Receipt-based expenses 4.5 Termination dates for additional expenses Section V- The Interjurisdictional Support Orders Act 5.1 Introduction to the ISO Act 5.2 Application of the ISO Act 5.3 Provisional orders and confirmation hearings 5.4 Court hearings under the ISO Act 5.5 The role of legal counsel 5.6 Authority of the court at ISO hearings in Alberta 5.7 Enforcement of support 5.8 Alberta s reciprocating jurisdictions 5.9 Court forms Lawyer s Guide to MEP Page 1 of 26 July 20112 Section VI Variation Applications 6.1 Necessary information Section VII Cancelling or Reducing Arrears 7.1 Stopping collection actions 7.2 Arrears due to the Crown 7.3 Court orders reducing maintenance or maintenance arrears Section VIII Accessing a Client s MEP File Information 8.1 Client confidentiality 8.2 Confidential information 8.3 Arrears due to the Crown 8.4 Authorization to release client information to legal counsel 8.5 Obtaining statements of account and account balances 8.6 Updating account balances before court appearances Section IX Substitutional Service through the Program 9.1 Required documents Section X Stays of Enforcement Section 32 of the Maintenance Enforcement Act 10.1 Payment arrangements 10.2 Enforcement action not affected by orders suspending support deduction notices 10.3 Application to suspend support deduction notices 10.4 Periods of time that a support deduction notice may be suspended 10.5 Circumstances under which a support deduction notice may be suspended 10.6 Stays of enforcement Section XI Removing Enforcement Action 11.1 MEP collection progression 11.2 Payment arrangements Section XII Communicating with the Program 12.1 Service Delivery Targets 12.2 Contacting MEP Lawyer s Guide to MEP Page 2 of 26 July 20113 Section I Program Basics 1.1 The mission of the Maintenance Enforcement Program (MEP) is to help families collect support through maintenance orders. MEP enforces maintenance in accordance with Alberta s Maintenance Enforcement Act. MEP asks for the voluntary cooperation of all people involved in maintenance orders and relies to a great extent on the collective participation of its partners: debtors, creditors, employers, financial institutions, other income sources and family lawyers. Last updated 7/15/ MEP enforces court orders and agreements for maintenance payments. MEP receives the payment from the debtor and forwards this payment to the creditor once the funds have been cleared through a trust account. MEP cannot enforce a court order or maintenance agreement unless the creditor or debtor has a file that is registered with MEP or the Crown has the right to maintenance owing under a court order or enforceable maintenance agreement (e.g., when creditors are receiving Income Support from the government). Last updated 7/15/ The maintenance enforcement clause that is required to be included in all support orders since January 31, 2007 makes it clearer that one party must register with the Program before enforcement can begin. Here is an example of such a clause: The amounts owing under this Order shall be paid to the Director of Maintenance Enforcement (MEP) at 7 th floor North, Street, Edmonton, Alberta T5J 3W7, (telephone , website: and shall be enforced by MEP on the filing of the Order with MEP by the creditor (recipient of support) or debtor (payor of support.) The amounts owing shall continue to be enforced by MEP until the party who filed this order gives MEP notice in writing withdrawing this order from filing in accordance with section 9 of the Maintenance Enforcement Act. Last updated 9/12/2011 Section II Enforceable Orders and Agreements 2.1 The Maintenance Enforcement Program (MEP) is authorized to enforce provisions requiring the payment of support found in any final or interim order of any court of Alberta, other than a provisional order that has not been confirmed. Under the Maintenance Enforcement Act and the Interjurisdictional Support Orders Act, MEP may enforce only certain types of orders and agreements. Lawyer s Guide to MEP Page 3 of 25 July 20114 The Maintenance Enforcement Program (MEP) is authorized to enforce provisions requiring the payment of support found in any final or interim order of any court of Alberta, other than a provisional order that has not been confirmed. Under the Maintenance Enforcement Act and the Interjurisdictional Support Orders Act, MEP may enforce only certain types of orders and agreements. MEP s ability to register and enforce a particular document depends on whether they are orders or agreements, whether orders are final, provisional or a variation, and which court, jurisdiction or legislation is involved. Under the Maintenance Enforcement Act, MEP is able to enforce: Orders or interim orders of a court in Alberta Queen s Bench protection orders under the Protection Against Family Violence Act Orders (other than provisional orders) that have not been confirmed Registrations under the Reciprocal Enforcement of Maintenance Orders Act or the Interjurisdictional Support Orders Act that require maintenance payments Agreements under part 5 of the Income and Employment Supports Act Agreements under section 6 of the Parentage and Maintenance Act Agreements under section 27 of the Income Support Recovery Act Agreements under the Child, Youth and Family Enhancement Act Agreements as prescribed in the Maintenance Enforcement Regulation MEP can also enforce orders granted in jurisdictions having reciprocal agreements with Alberta under the Interjurisdictional Support Orders Act. If a maintenance order granted by the Provincial Court is registered with MEP, Program staff may file the order at the federal Court of Queen s Bench. Filing at the Court of Queen s Bench is necessary before MEP can issue support deduction notices to collect the maintenance. This filing does not remove the jurisdiction of the Provincial Court to vary the order. 2.2 Agreements Last updated 7/15/2009 The Maintenance Enforcement Act allows MEP to enforce support agreements that are in the form prescribed by the Maintenance Enforcement Regulation. Alberta MEP cannot enforce maintenance agreements made in Alberta other than those in the form prescribed by the Maintenance Enforcement Regulation and certain ones entered into under the Parentage and Maintenance Act, the Child, Youth and Family Enhancement Act, the Income and Employment Support Act, the Income Recovery Act and the Maintenance and Recovery Act (prior to January 1, 1991). Lawyers should consult the Act under which the agreement was made to ensure MEP can enforce it. MEP can enforce agreements made using legislation of reciprocating jurisdictions in accordance with the Interjurisdictional Support Orders Act. Lawyer s Guide to MEP Page 4 of 26 July 20115 2.3 Provisional orders Last updated 2/11/2011 Provisional orders or provisional variation orders are orders granted in one jurisdiction (where the applicant lives) that must first be confirmed in the jurisdiction where the respondent to the application lives before being enforceable. These typically occur where the parties reside in different jurisdictions and only one was represented at the hearing that granted or varied support obligations. Provisional orders are rarely required any more because legislation has been improved. To ensure that provisional orders are not inadvertently registered and enforced as final orders, they must clearly be titled Provisional Order or Provisional Variation Order. They should also contain a stipulation that they are not in effect until confirmed by a court of competent jurisdiction in the province or state where the respondent resides. Provisional orders should be accompanied by a provisional package as set out in the Interjurisdictional Support Orders Act and section 18 of the Divorce Act. The completed package should include three certified copies of the order and all supporting documentation as prepared by the client or lawyer. The package must be submitted at the courthouse, which transmits the provisional order and package to the provisional clerk at MEP. The provisional clerk forwards the documents to the reciprocal jurisdiction for confirmation. The entire process can take up to two years. Not all provisional orders are confirmed in the reciprocating jurisdiction; the provisional order may be varied or rejected altogether by the reciprocating jurisdiction. Where a provisional order contains a stay of enforcement, it may not be clear whether the stay is to take effect immediately or only upon confirmation. To ensure that a stay of enforcement in a provisional order is followed, the order should state that the stay is to take effect immediately, even though the rest of the order does not take effect until confirmation. 2.4 Minutes of settlement and other settlement agreements Last updated 7/15/2009 MEP cannot enforce maintenance terms contained in Minutes of Settlement or other settlement agreements, unless they have been incorporated into a court order. Lawyers should expressly incorporate relevant agreements into a support order (to ensure that MEP is able to enforce the terms of the agreement) or should use the agreement form set out in the Maintenance Enforcement Regulation. Lawyers should also be aware that certain foreign jurisdictions file agreements without any court orders. MEP can enforce these filed agreements in accordance with the Interjurisdictional Support Orders Act. Lawyer s Guide to MEP Page 5 of 26 July 20116 Amended Minutes of Settlement do not vary existing orders incorporating the former Minutes of Settlement. The new minutes must be incorporated in a new order and provided to MEP for the new terms to be enforced. 2.5 Variation orders Last updated 7/15/2009 Orders registered with MEP have normally been filed at the Court of Queen s Bench and can therefore only be varied by that court or a higher tribunal. It is MEP s general policy to construe variation orders narrowly; the new order will be interpreted to vary only what it actually addresses, in the absence of a clear indication of what paragraphs of the prior order or agreement are replaced. In cases of ambiguity, MEP may choose to consult the Application or Claim, the clerk s notes, the lawyers involved and/or the parties to determine the intent of variation orders. 2.6 Variation agreements Last updated 10/15/2010 In Alberta, agreements cannot override court orders. Therefore, if the original order is an Alberta order and an agreement is received that contradicts provisions in the order, MEP cannot register or enforce the variation agreement. The terms of the agreement must be incorporated in a new court order and provided to MEP for those terms to be enforced. However, under the Interjurisdictional Support Orders Act, MEP can enforce a variation agreement granted in another jurisdiction if the legislation of the reciprocating jurisdiction accepts the variation agreement, and the agreement was filed in the court of the reciprocating jurisdiction. If a maintenance agreement under the Parentage and Maintenance Act or Income and Employment Supports Act has been registered with MEP and is filed at the Court of Queen s Bench, a variation agreement under the same legislation overrides the original agreement and MEP can enforce it. Last updated 7/15/2009 Section III Drafting Maintenance Orders 3.1 Maintenance terms The Maintenance Enforcement Program s (MEP) ability to effectively collect support depends on the clarity of the maintenance order. Much of the work achieved by lawyers when negotiating provisions, appearing in court and preparing orders, may be lost if the orders support terms are not clearly worded. MEP enforces the clear, legal and workable terms in support orders. The Program applies existing policies and practices when the orders are silent or ambiguous. Lawyer s Guide to MEP Page 6 of 26 July 20117 To ensure that MEP can enforce support orders, orders should clearly state the following: That one party is to pay the other party The date payments are to commence The dates payments are due The amount of each payment The conditions of eligibility and/or terminating events Whether the support obligation may be revived once it ends For an example of clear and enforceable maintenance terms, lawyers may wish to use the language contained in the Maintenance Enforcement Support Agreement. 3.2 Recipients Last updated 7/15/2009 For MEP to collect a particular amount on behalf of a creditor, the order must state that the spousal and/or child support is payable to the creditor. MEP does not have the authority to enforce amounts (such as those relating to additional expenses) that are ordered to be paid directly to a third party. If a debtor is ordered to pay child support directly to the child, MEP enforces the order by opening a file listing the child as the creditor. 3.3 Commencement dates Last updated 7/15/2009 Orders failing to stipulate commencement dates for monthly maintenance are generally interpreted to mean that the first payment is due in the month in which the order was granted. If retroactive amounts are due, orders should expressly indicate this. 3.4 Due dates Last updated 7/15/2009 If orders do not stipulate specific dates within the month on which ongoing support is due, the default day is the end of the month. Most orders stipulate that payments are due on the first or 15 th day of the month, which is when MEP s Revenue staff are busiest. Clients may obtain speedier service by having their payments processed if their orders specify a different due date within the month. Orders directing that payments are due according to debtor pay periods are difficult to administer and may result in times where no payment is enforceable, given the possibility of unemployment or job change. Last updated 7/15/2009 Lawyer s Guide to MEP Page 7 of 26 July 20118 3.5 Periodic maintenance and variable orders The periodic maintenance due (ongoing maintenance) should be an actual dollar amount. Difficulties arise when MEP is asked to enforce orders that make general reference to the amount under the Child Support Guidelines or that express the amount owing as a percentage of debtor income. This is because debtors may derive their income from a variety of sources. Ascertaining income when the debtor is selfemployed, and not a salaried employee, is particularly difficult. MEP requests that lawyers not obtain variable orders that provide for different support amounts depending on particular circumstances, such as debtor employment or earnings. While MEP is often able to enforce variable orders, it can be very difficult to obtain the necessary information to determine the enforceable amount. In particular, when the support amount varies according to income, debtor earnings may not be easily ascertained. This may lead to delays that are problematic for both creditors and debtors and may require the parties to return to court to resolve the matter. MEP enforces the terms of the court order according to the circumstances that applied at the time the file was registered with MEP, unless notified otherwise. The parties involved are responsible for notifying MEP if any changes of circumstance specified in the court order become applicable. MEP requires supporting documentation to confirm any changes of income or employment status. MEP cannot provide creditors with information or documentation it obtains to determine the amount of maintenance due (including proof of a debtor s income or the number of days the debtor has worked) under a variable order. This can be frustrating to creditors who wish to confirm the amount of maintenance MEP has determined is due, and is another reason why variable orders should be avoided. Under section 5(1) of the Maintenance Enforcement Act, if the Director considers it practicable to do so, the Director shall enforce a maintenance order that is filed with him in the manner he considers appropriate. Orders that are easily interpreted and administered are the simplest and most effective to enforce. The following are examples of actual provisions in maintenance orders that MEP has found difficult or impossible to administer. Example: Employment status This court orders that the respondent pay to the applicant for the maintenance of the child the sum of $ per month while the respondent is in receipt of unemployment insurance benefits and the sum of $ per month when the respondent is employed. This provision requires MEP to obtain proof of employment status from the debtor, which can delay adjustments to the file. Staff must also make a judgment call regarding the timeframe in which the debtor may provide the information, failing which Lawyer s Guide to MEP Page 8 of 26 July 20119 the file will not be adjusted or the higher amount will be payable. Further, the order is silent as to what amount is payable if the debtor is unemployed, but not receiving unemployment insurance. Example: Change in income The parties shall review child support annually and it shall be based on the payor s income for the previous year. In order to facilitate this review, the parties shall exchange their income tax return for each year by May 15 th of the following and child support shall be reviewed on or before July 1 st. The adjusted amount shall be payable retroactively to the 1 st day of January of that year and there shall be an adjustment for any over or under payment. This variable court order is difficult to administer, as MEP cannot control whether the parties actually exchange income tax returns. In this situation, the debtor provided an income tax return to MEP and asked for an adjustment. MEP was unable to determine the debtor s guideline income, given various business deductions and the creditor s disagreement as to what line in the income tax return to use. In the end, MEP chose to enforce the original court-ordered amount unless the parties could agree on what the guideline income should be. 3.6 Amount towards arrears Last updated 6/28/2010 When there has been a prior maintenance order under which arrears have accumulated, MEP suggests that a variation order address the matter of arrears by confirming the amount owing, providing for a payment schedule, and stipulating the consequences on default of payment. A typical provision might be: The arrears are set at $ as of, 20 and are to be paid at the rate of $ per month on the day of each month commencing, 20. Provided that the payor makes this arrears payment and the full amount of ongoing maintenance by the day of the month, there shall be a stay of enforcement on collection. Where payment of arrears is not addressed in a variation order or in an order providing for retroactive support, MEP continues enforcement action or initiate action to collect all of the arrears that have accumulated under the order. 3.7 Conditions of eligibility and terminating events Last updated 7/15/2009 If the support order clearly stipulates conditions of eligibility and/or terminating event for payment of maintenance (e.g. support shall be payable until the child reaches age 19), MEP enforces these terms. However, if the order does not stipulate conditions of Lawyer s Guide to MEP Page 9 of 26 July 201110 eligibility for support and/or terminating events (such as age, residence, or student status) MEP may be able to continue to collect child support after a child turns 18, depending on the legislation under which the order was granted. If support obligations are to terminate when children are no longer in the care and control of the creditor, you may wish to have the order define the factors constituting care and control such as residence, employment and/or marital status. For children entitled to support while pursuing post-secondary studies, orders might contemplate whether they must reside with the creditor to qualify. Residence with the creditor is not an absolute requirement under MEP s current child of the marriage policy. If orders state that support terminates when the child reaches the age of majority or at the conclusion of his or her secondary studies or post-secondary studies, fulfillment of these conditions or the terminating event may be different if the child resides in a jurisdiction outside of Alberta. For this reason, parties may prefer to name an exact age, such as 18 or 21, or more clearly define the educational requirement. You may also want to consider clearly stating in orders whether the obligation to pay child support may be reinstated after a period that children are ineligible. Otherwise, MEP s policy permitting reinstatement only with a court order may apply. Further, if child support is not payable during particular periods (such as prolonged access), the order should state the periods and their duration. 3.8 Global orders Last updated 7/15/2009 One of the most common areas of contention between MEP s creditors and debtors involves global orders and the debtor s obligation to continue paying the full amount of support ordered despite one or more children leaving creditor care and control. Global orders set a total amount of money to be paid for the support of two or more children per month, rather than an amount for each child per month. An example of a global order is: The wife shall pay $ per month for the support of the children. Global orders are typically drafted when basing child support on the debtor s income under child support guidelines. Commencing January 1, 2010, MEP began changing the amount of maintenance it enforces when one of the children mentioned in a global order ceases to be a child of the marriage. MEP will not adjust the amount enforced if: The amount granted by the court for the maintenance order is outside the Child Support Guidelines Tables (e.g. the debtor earns more than the maximum listed in the tables) Lawyer s Guide to MEP Page 10 of 26 July 201111 One of the children, at the time of the order, was no longer the subject of the maintenance order There is shared custody or parenting time of the dependants The court has found that there is financial hardship In cases where MEP cannot enforce a lesser amount because of the above exceptions, MEP will only change the amount enforced upon receipt of a new maintenance order. To clearly establish the amounts due according to the number of children, lawyers are strongly encouraged to include a step-down provision in the order. This sets an alternate amount of child support to be paid as each child ceases to be a child of the marriage (or fails to meet some other requirement for eligibility, such as age). Last updated 06/30/2010 Section IV Ensuring That an Additional Expenses Provision is Enforceable 4.1 Enforceable expense provision clauses Section 7 of the Federal Child Support Guidelines and Section 7 of the Alberta Child Support Guidelines allow the court to order debtors to contribute to child care, health care, education and extracurricular activity expenses. These expenses are also referred to as section 7 expenses, special expenses, additional expenses or extraordinary expenses. For the Maintenance Enforcement Program (MEP) to be able to enforce additional expenses in support orders, these orders should: State that one party pays the other party Specify the type of expense State the amount payable each month Name the children for whom the expenses are to be paid State the date of the first payment and the date the payment is due every month thereafter State the termination date or conditions for payment of additional expenses If orders address specifically-named additional expenses, MEP can only enforce expenses if the support provision expressly requires debtors to pay these expenses to creditors. MEP cannot enforce expenses when these expenses are to be paid to any other party. Where support provisions clearly provide for payment of additional expenses, the amounts are charged to the maintenance enforcement file and must be enforced through MEP, unless creditors opt out of MEP. Amounts should not be paid directly to creditors or third parties. In exceptional circumstances, MEP may permit creditors to Lawyer s Guide to MEP Page 11 of 26 July 201112 acknowledge that debtors have paid additional expenses directly to creditors or third parties Last updated 11/24/ Proportionate expense clauses MEP enforces expense amounts whether set amounts identified in court orders or agreements, or proportionate shares of court-specified expenses parties must pay. If court orders do not specify what proportionate shares refer to, they cannot be enforced. If court order or agreements state that parties are to share expenses equally, MEP considers that to mean that parties split expenses in half. If it is not possible to calculate the percentage of proportionate shares without seeking more information from parties, orders are considered too vague for enforcement. Orders or agreements with proportionate expense clauses usually determine share amounts by: Specifying the percentage of the proportionate share the debtor must pay Listing the guideline income of both parties Providing some other mechanism to calculate or determine what proportionate share should be enforced When orders or agreements require parties to each pay or be responsible for their proportionate share of expenses, MEP accepts receipts from either party. Last updated 11/24/09 Lawyer s Guide to MEP Page 12 of 26 July 201113 4.3 Fixed additional expenses amounts While parties are entitled to express additional expenses in terms of percentages of indeterminate amounts, MEP strongly encourages them instead to agree on a fixed amount for ease of enforcement. For example, it is preferable for an order to require the debtor to pay $100 per month for hockey expenses, rather than 55 per cent of the hockey expenses incurred. This prevents possible conflict between parties regarding MEP s collection of additional expenses and has the following other benefits: There is no need for MEP to obtain and review receipts It eliminates the need for MEP to consult with parties Ongoing retroactive adjustments to files are unnecessary. Delays in making adjustments may be experienced when MEP staff are asked to review and verify additional expense receipts provided by creditors If orders require MEP to determine the amount of additional expenses owing based on receipts provided by creditors, the following difficulties can arise: There is often no way of determining from receipts that the particular item or activity was specifically paid for the child named in the court order. There could be disputes that items were was returned for refund. It may not be clear that expenses shown on receipts were intended to be additional expenses. These types of provisions can cause irresolvable disputes between parties about whether to allow disputed additional expenses claimed by creditors. The result may be that MEP s Director declines to enforce the ambiguous terms in the order regarding additional expenses. 4.4 Receipt-based expenses Last updated 4/14/2011 MEP follows expense terms in orders explicitly. MEP staff will not determine the reasonableness of expense terms. MEP will only accept and process receipts that are: legible show the date the client made the payment show the date the receipt was issued show the amount paid show the vendor or service provider s name indicate what good or service was provided In cases where orders stipulate that debtors must agree to expenses, this agreement must also be shown before receipts are added as a charge. MEP enforces expenses only after receiving confirmation from debtors that they have received the receipts and agree Lawyer s Guide to MEP Page 13 of 26 July 201114 to the expenses. If creditors cannot locate debtors to gain agreement, MEP cannot enforce expenses. Last updated 11/24/ Termination dates for additional expenses Termination dates and/or conditions of eligibility for additional expenses should be stipulated in orders. For example, a clause might state that a particular expense is due only for the months during which the child is enrolled in a particular activity and may be reinstated when the child recommences the activity. Whether a particular activity may be substituted with a different activity might also be considered. Where an order is silent, MEP generally does not enforce expenses when the expense is no longer being incurred. When expenses are specifically identified, but orders set one global amount for all expenses, MEP does not reduce the amount when one expense is no longer incurred, unless directed by order or agreement. Last updated 11/24/09 Section V- The Interjurisdictional Support Orders Act 5.1 Introduction to the ISO Act The Interjurisdictional Support Orders Act (ISO) is legislation that all Canadian jurisdictions (except Quebec) have agreed to pass. The Act: allows parties residing in different jurisdictions to obtain and vary maintenance orders under provincial legislation more quickly and easily eases enforcement of maintenance orders from other jurisdictions benefits families by increasing the likelihood of entitlement to maintenance. Under the ISO Act, matters are decided by courts in the respondent s jurisdiction. Unless respondents live in jurisdictions that are not a reciprocating one or that require provisional orders, there are no court hearing in the applicants jurisdiction. Applicants in Alberta instead complete a support applications (or support variation application) and file them with the Alberta courts. Sworn or affirmed applications are then forwarded to the respondents jurisdiction for determination. When respondents reside in Alberta and applicants do not, the Alberta courts receive applicants support application package from another jurisdiction and schedule a hearing. The Alberta court will hear and decide the matter, relying on the claimant s sworn support application and any viva voce or affidavit evidence presented by the respondent. The ISO Act provides a clear and consistent approach to choice of law. These provisions increase the likelihood of entitlement to maintenance. Additionally, appeal periods under ISO are 90 days for the applicant and 30 days for the respondent. Lawyer s Guide to MEP Page 14 of 26 July 201115 The ISO Act replaced the Reciprocal Enforcement of Maintenance Orders Act (REMO). It streamlines the process for obtaining, varying and enforcing support orders involving Albertans and parties who live in other jurisdictions. The ISO Act came into force in Alberta on January 31, Application of the ISO Act The ISO Act applies in situations where: one party (either the applicant or respondent) resides in Alberta, and the other party resides in a reciprocating jurisdiction the applicant is bringing an initial application for maintenance, or an application to vary an existing maintenance order the application is being made under provincial and territorial legislation, such as the Family Law Act The ISO Act does not apply to applications made under the Divorce Act. 5.3 Provisional orders and confirmation hearings Provisional orders have not entirely disappeared under the ISO process. When required by the reciprocating jurisdiction where the respondent resides, a provisional order can still be granted. The reciprocating jurisdictions that require provisional orders are England, Scotland, Wales, Northern Ireland, Jersey, the Isle of Man and New Zealand. There have been no changes to the procedure for applications under the Divorce Act. When applicants seek to vary orders involving parties who reside in reciprocating jurisdictions, the court in the applicants jurisdiction continues to grant provisional orders that may be confirmed by the respondents jurisdiction. 5.4 Court hearings under the ISO Act Last updated 6/28/2010 The Provincial Court hears all ISO applications for support or support variations whenever that court has jurisdiction. The ISO Act provides that only the federal Court of Queen s Bench can vary orders granted by federally appointed judges. 5.5 The role of legal counsel Standard court forms have been developed for use in Canada for support and support variation applications made under the ISO Act. Applicants are able to obtain these forms from their province or territory of residence and can choose whether to obtain legal assistance to complete and swear applications. Lawyer s Guide to MEP Page 15 of 26 July 201116 Applicants do not need to retain legal counsel to appear at court hearings on their behalf. There will be no court hearing in applicants jurisdictions and applicants are not expected to be verbally represented at court hearings in respondents jurisdictions. The support application procedure is specifically designed for applicants who choose not to hire legal counsel in the province or territory where hearings are held. 5.6 Authority of the court at ISO hearings in Alberta An ISO hearing in Alberta allows an Alberta respondent to address the information contained in the out-of-province applicant s sworn or affirmed support application package. The Alberta court hearing the application may make a support order, adjourn the matter to a specified date with or without making an interim order, or refuse to make an order. If the court refuses to make an order, the ISO Act requires that reasons be given for its decision. The Alberta court can also request further evidence from the applicant. Should this additional evidence not be received within 12 months, the application may be dismissed. The ISO Act also attempts to address delays posed for applicants where respondents, although they have been served, do not appear at the scheduled hearing or do not produce the required information or documents. The Act provides that in these cases, the court must make a support order based on the information supplied by the applicant and any inferences the court considers appropriate. The exception to this is when the court has no information about the respondent s financial or employment circumstances. 5.7 Enforcement of support In addition to outlining procedures for obtaining or varying court orders when the parties reside in different jurisdictions, the ISO Act deals with registration for enforcing orders in Alberta if they have been granted in other jurisdictions. All Canadian support orders are enforceable immediately upon filing them with an Alberta court. Under the ISO Act, only orders granted outside of Canada are not enforceable for 30 days after they are filed to allow respondents an opportunity to set aside order registration. 5.8 Alberta s reciprocating jurisdictions Reciprocal agreements exist with all other provinces and territories of Canada, the United States and the following other jurisdictions: American Samoa Guam Poland Lawyer s Guide to MEP Page 16 of 26 July 201117 Australia Isle of Man Puerto Rico Austria Jersey Scotland Barbados New Zealand Singapore Czech Republic Northern Ireland Slovak Republic Great Britain Northern Mariana Island South Africa Fiji Islands Norway Virgin Islands Germany Papua New Guinea Wales If Alberta applicants wish to vary support orders and their respondents no longer live in a reciprocating jurisdiction, the ISO Act provides that an Alberta court can hear variation applications if respondents have been given notice of proceedings. 5.9 Court forms Standard court forms for support applications and support variation applications, and detailed instructions on how to complete these forms, are available through Family Law Information Centres (FLIC). Section VI Variation Applications 6.1 Necessary information The Maintenance Enforcement Program (MEP) does not have the authority to change orders. Only courts can change orders. If circumstances change, either creditors or debtors can apply to the courts to have maintenance orders varied. When applications to vary court orders have been brought before the court, MEP must be served with the Application (or Claim) and a supporting Affidavit. When serving MEP with a variation application, ensure that the following is included: information about which order is being varied which sections of the order are being varied the specific time periods that are being varied whether child support, spousal support, expenses or other items are being varied the specific amounts that are now due specifics about the amount of arrears and for what time period they apply (i.e. $400 set as of May 1 st, 2009) specifics about whether arrears include child support, spousal support, expenses or interest amount of costs, if there are any the party to whom portions are due clear repayment arrangements for any arrears Lawyer s Guide to MEP Page 17 of 26 July 201118 MEP is best able to enforce variation applications when they are worded as specifically as possible. For example, if the court application outlines that interest must be charged on arrears, be specific. Is interest to be charged only on set arrears, or all arrears past and future? What is the rate of interest? Is interest intended to be charged every month, regardless if the debtor makes payments towards the arrears in full and on time? Last updated 10/22/2010 Section VII Cancelling or Reducing Arrears 7.1 Stopping collection actions Debtors may apply to the courts to reduce periodic maintenance or to set, reduce or cancel any outstanding arrears. When bringing variation applications, the court applications should be served on the Maintenance Enforcement Program (MEP). It is prudent to resolve applications as quickly as possible to avoid unnecessary collection action being taken against debtors. MEP often receives letters from lawyers requesting collection to cease pending the outcome of variation applications. MEP does not stop enforcement because variation applications are commenced. MEP staff may consider withholding certain enforcement action pending variation applications, provided that the applications are heard within a reasonable time period and debtors enter into temporary payment arrangements. Withholding or removing enforcement action is more likely to occur if debtors have a demonstrated financial inability to pay or MEP s file suggests that they will likely be successful with their court application, given the information provided in a sworn Statement of Finances. 7.2 Arrears due to the Crown Last updated 10/15/2010 It is particularly important to serve MEP with notice of applications to reduce maintenance arrears when arrears may be subrogated or due to the Crown for periods that creditors received Income Support from Alberta Employment and Immigration. When creditors receive Income Support or Assured Income for the Severely Handicapped (AISH), some or all maintenance amounts payable during the period of assistance may be due to the Crown. If this is the case, MEP s legal counsel may appear in court to oppose an application to reduce or cancel the arrears. The courts have ruled that creditors, debtors and their lawyers cannot agree to reduce or eliminate arrears due to the government. MEP is permitted to advise debtors or their legal counsel whether any arrears are subrogated or due to the Crown and if so, specify the amount and periods of time the Crown was entitled to maintenance. Lawyers applying to cancel maintenance arrears should always contact MEP first to determine if there are Crown arrears. Lawyer s Guide to MEP Page 18 of 26 July 201119 7.3 Court orders reducing maintenance or maintenance arrears Once orders are granted, they should be promptly filed and served on MEP so that staff can appropriately adjust enforcement actions in place against debtors. MEP staff will not adjust files based on draft or unfiled court orders. Once filed orders are received, MEP staff require sufficient business days to review, adjust files and remove collection action, if appropriate. Section VIII Accessing a Client s MEP File Information 8.1 Client confidentiality The Maintenance Enforcement Program (MEP) is committed to preserving the privacy of its clients. With limited exceptions, only clients have the right to access personal information about themselves and their MEP files. Section 15 of the Maintenance Enforcement Act allows MEP to provide certain information to particular persons and organizations. Section 2.2(1) of the Maintenance Enforcement Regulation states that the Director may provide information that a debtor is in arrears and ancillary information to the creditor, the creditor s legal counsel, the debtor and the debtor s legal counsel. 8.2 Confidential information MEP is not subject to the provisions of the Freedom of Information and Protection of Privacy Act with regard to the release of client file information. Section 15(1) of the Maintenance Enforcement Act states that information received by the Director under this Act may be used only for the purpose of enforcing a maintenance order and is otherwise confidential. Information that is confidential includes client: name (if different from what is specified in the maintenance order) address, telephone numbers and addresses marital status social assistance status income, assets and banking information Statement of Finances employment status or place of employment MEP Personal Identification Number (PIN) Social Insurance Number (SIN) MEP does not release confidential information relating to children, such as address, activities, and educational institutions they are attending. Lawyer s Guide to MEP Page 19 of 26 July 201120 8.3 Arrears due to the Crown MEP s legislation permits MEP to advise clients and their legal counsel of the amount of arrears on a file, whether any of those arrears are due to the Crown and the periods of time when the Crown was entitled to the maintenance payments. 8.4 Authorization to release client information to legal counsel MEP accepts lawyers indications that they act for clients as authorization for the release of file information. If a lawyer writes and confirms that they act for a client, MEP will accept this statement as an indication that the client has authorized the release of file information to the lawyer and release the information. If, however, lawyers phone MEP directly, MEP staff need to confirm that they are in fact speaking to a lawyer. They may confirm this in one of the following ways: the name and telephone number displayed on the MEP telephone confirms the name and telephone number of the law firm by placing an outgoing call to the law firm by making inquiries of the lawyer to confirm their identity 8.5 Obtaining statements of account and account balances The best and quickest way to obtain a MEP statement of account is to have clients print it through MEP Accounts Online. Clients may also order statements through the automated functions of the MEP Info Line. Statement are mailed to clients within two business days of requests being received. Clients are responsible for forwarding statements to lawyers. It is essential that MEP has the current address on file or the statement will not be received. Statements are not mailed to addresses shown as inaccurate in MEP s records. Lawyers or clients may also request statements of account by telephoning MEP s Client Services Centre. This will result in a faster response than sending a written request by fax or mail. Staff will endeavour to provide responses within 14 days of written requests being received. 8.6 Updating account balances before court appearances Lawyers may wish to obtain updated MEP account balances on the day of court appearances. This is particularly important if there have been interest charges added to debtors statements to ensure the most up-to-date balance. The easiest way to do this is to have clients obtain balances on the MEP Info Line or through MEP Accounts Online. Lawyer s Guide to MEP Page 20 of 26 July 2011 View more
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