A Spousal Maintenance Order, also known as a Periodical Payments Order, is where one spouse makes regular payments to the other spouse to assist with their living costs. In the majority of cases meeting an individual’s essential needs will be the main priority and all that can realistically be achieved, particularly where the finances are limited.
When addressing the finances of a marriage, the Court has a duty in every case to consider whether a clean break is appropriate, i.e. no ongoing support is provided by either spouse and they both live financially independent of one another. The Court has moved away from maintenance orders that last indefinitely. Instead, the preferred position is for there to be a specific term Spousal Maintenance Order, if such an order is appropriate. The priority is to ensure both spouses can transition to financial independence as soon as it is practicable.
If the paying spouse has the financial resources a claim for maintenance can be ‘bought out’ by way of a lump sum payment, known as capitalisation. Once the lump sum payment has been made, this would result in a clean break meaning the receiving spouse cannot make any future claim for spousal maintenance.
What information is required to see if spousal maintenance is appropriate?
An important first step is for both parties to provide their full and frank financial disclosure to assess whether spousal maintenance is reasonable in the circumstances.
Key considerations will include looking into both spouses’ income positions and their current and estimated future outgoings. If one spouse cannot support themselves financially without receiving some form of financial assistance from the other then spousal maintenance may be appropriate, albeit usually for a very restricted period. The other spouse must have sufficient financial resources to be able to meet any regular payments due to the other, whilst also meeting their living costs. If the Court believes the spouse applying for spousal maintenance does not need financial assistance with their essential living costs, or the other spouse cannot afford to assist then an order will not be granted.
The Court will look at the earning capacities of both parties and the welfare of any children of the family when considering whether to grant a Spousal Maintenance Order. Post separation it will be expected that both parties will continue their existing employment or reintroduce themselves into the employment market to earn their income, provided no health issues or other circumstances are making them unable to work full or part time. It is generally preferable to either be in work or in the active process of finding work and evidence of this, otherwise, there is a risk the Court could reach its conclusion as to the parties’ future earning capacities when making its final decision.
Can a Spousal Maintenance Order be varied?
When the Court grants a Spousal Maintenance Order, it is important to recognise the implications of this. Either party can apply to the Court to vary the order upwards or downwards if there has been a significant change in their financial circumstances. For example, if the receiving spouse finds themselves in financial difficulty they may apply to increase the amount of maintenance payable and/or extend the timeframe for payments to be made. On the other hand, if the paying spouse suddenly has a considerable decrease in their income, they could apply to the Court to vary the payments downwards or seek for the order to be discharged and end entirely. It is also possible to agree the changes by consent.
When does a Spousal Maintenance Order end?
It depends on the individual circumstances, however, the term for spousal maintenance payments can be extendable or non-extendable. If there is a non-extendable term this means the Court can direct that the receiving spouse may not apply to extend the term. An order will often be put in place for a specific period or until a triggering event occurs discharging it. In the event, that the receiving spouse remarries or enters into a civil partnership, or if either spouse dies before the expiry of the term, this will automatically discharge the maintenance payments.
How can Tozers help?
Tozers can provide expert guidance and support throughout the process of understanding and navigating spousal maintenance orders. Our experienced team of family law solicitors can help you assess your situation and determine the best course of action. We can assist in drafting and negotiating maintenance agreements that reflect your needs and circumstances.
