Spousal Maintenance Lawyers
What is Spousal Maintenance?
Spousal maintenance is the payment by one spouse to another of regular sums of money, as part of their financial settlement on divorce.
These payments are separate to child maintenance. Spousal maintenance is not paid in all divorce settlements – there is an obligation to achieve a financial clean break between a couple if possible.
However a clean break settlement is not always achievable when looking at how both parties will meet their needs and spousal maintenance is sometimes necessary.
When a spousal maintenance order is made, the court will consider both the amount payable and the term it is payable for.
Am I Entitled to Spousal Maintenance?
Spousal maintenance may be paid by one spouse to another, if the financially weaker spouse is unable to meet their reasonable income needs from the capital settlement that they receive on divorce and their own income or earning capacity, provided that the financially stronger spouse can meet their own reasonable income needs whilst paying spousal maintenance.
Whether or not spousal maintenance will be payable is very fact-specific and it is important to consult with a lawyer about this.
How Much Spousal Maintenance Will I Receive?
There is no formula to calculate the amount of spousal maintenance that should be paid.
Spousal maintenance is based upon one spouse’s needs to maintain a reasonable standard of living and the other spouse’s ability to pay. The court will expect both parties to maximise their earning capacity and generate income from any capital assets (though not necessarily eating into it).
Any other income they receive, such as child maintenance or pension income will also be taken into account. If they still have a shortfall between their income and their reasonable income needs, provided the financially stronger spouse can afford to meet the shortfall, a spousal maintenance order can be made to cover that shortfall.
How Long Will I Receive Spousal Maintenance For?
The financial obligations of spousal maintenance after divorce can be for an indefinite period of time (until one spouse dies), known as a joint lives order, or for a specific period of time, known as a term order. Both orders can be varied at any point, if there is a change in circumstances or the financial position of either party, both in terms of the amount paid and the duration of the order. If a paying party dies, the receiving spouse may be entitled to claim against the payer’s estate.
Joint lives maintenance orders are becoming rarer and are only made when the court cannot determine when the financially weaker spouse will become financially independent. Often these orders will have to be reviewed when the paying spouse retires and their income reduces significantly. At that juncture, the term of spousal maintenance order may be reduced or even brought to an immediate end. Sometimes a capital sum is paid at that juncture to capitalise further spousal maintenance and there is then a clean break between the parties.
Term orders can be with or without a S28 (1A) bar. This refers to section S28 (1A) of the Matrimonial Causes Act 1973. If there is a S28 (1A) bar the term of the spousal maintenance order cannot be extended. If there is no S28 (1A) bar, the term of the spousal maintenance order can be before the end order. However, it is only in limited circumstances where this will be agreed by a judge.
It must be noted that all spousal maintenance orders automatically end if the person receiving the benefit of the spousal maintenance remarries.
Are Spousal Maintenance Orders Variable?
Spousal maintenance orders can be varied at in relation to term and duration. If either the payer’s or the recipient’s financial arrangements change, a variation may be appropriate. For example if the payer retires or loses their job, the spousal maintenance monthly payments may be reduced or stopped.
Likewise if the recipient obtains well paid employment or starts cohabiting (resulting in a change in their overall household budget) the spousal maintenance payments could also be reduced or stopped.
Alternatively, if the recipient cannot manage on the spousal maintenance they are receiving due to inflation or other unforeseen changes in their financial situation, and the payer can afford to pay more, the spousal maintenance payments may be increased upwards. Whether or not the term of the order can be extended will depend on the terms of the order that was originally made
Can Spousal Maintenance Payments Be Capitalised?
The court are obliged to try and effect a clean break between divorcing parties. One way this can be done is for a spousal maintenance claim to be ‘capitalised’.
This is where the person who would be receiving spousal maintenance payments received an additional capital sum in lieu of monthly payments. If there is not enough money to capitalise spousal maintenance at that point, either spouse can at a later date apply to court to capitalise the spousal maintenance and achieve a clean break.
This application will only be successful if the payer can be shown to have sufficient money to pay a capital sum and the courts deem it to be a fair settlement.
Reach out to Our Specialist Spousal Maintenance Finance Team Today
Family law matters can bring financial uncertainties, which can be very overwhelming. Our team of spousal maintenance lawyers have extensive experience in financial matters, to help guide you along the way with confidence.
To chat with our team, call us on 0333 202 6433 or email us at [email protected].
