05
Mar 2020
Spousal Maintenance – Key Information
When relationships come to an end, financial certainty and security for the future is often at the forefront of everyone’s mind and something which causes a great deal of anxiety for clients. One important element of this to consider is whether one party will have to pay future monthly maintenance to their former spouse or civil partner. This is not to be confused with child maintenance but rather is a payment intended to contribute to meeting that spouse’s needs. Although the court has a duty to always consider whether a clean break is possible as it is often preferable to end a financial relationship on divorce, spousal maintenance is an issue which we commonly deal with for our clients.
How much maintenance?
The answer to this will revolve around what the parties financial needs are. This involves a careful review of what a party needs by way of income on a month by month basis and to what extent they can meet their own needs through their earnings, benefits or any other source. The process starts with each party putting together a schedule of their monthly outgoings. Although one party may have a shortfall between their income and outgoings such that they can demonstrate a need they cannot automatically claim this from their former spouse or civil partner, they have to show that they have surplus income from which to make a payment. It is also imperative that the outgoings of the claiming party are reasonable and justifiable. Any items which are over-stated can and usually will be discounted by the court.
Assessing whether maintenance should be paid is often a complex and involved process which requires both parties income and outgoings to be balanced to create a fair outcome.
How long can maintenance be paid for?
Option 1 – Term Maintenance Order
Under a term order maintenance would be paid for a specified number of years. This will usually be timed against an intended change in circumstances at the end of that term, eg. A child of the family reaching a milestone age or leaving home or the receiving party completing some form of training which will enable them to increase their income.
The intention of a term order is to enable the receiving spouse to transition to independent living. Such orders tend to be favoured by the court however there are often circumstances where a longer order is entirely justifiable.
Option 2 – Joint Lives Order
This kind of order results in one party paying maintenance until either party dies.
Both types of maintenance can be varied to either increase or decrease the sum paid if the situation changes for either party during the term of the payments. Similarly, a term order can have a ‘bar’ on it meaning that at the end of the term it cannot be extended.
Either kind of order can also be capitalised if there are funds available meaning that a lump sum can be paid to achieve a clean break and bring about an end to the monthly payments.
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