When a marriage breaks down there is sometimes one party that requires financial support, which is known as maintenance and is paid from one party to the other, usually by the party with the higher income.
Maintenance can be paid during the divorce process and after it has concluded. Whatever the circumstances, Duncan Lewis’ specialist divorce solicitors can talk you through your options.
In High Net Worth divorce matters, the income disparity between couples can be significant. Spousal maintenance recognises the different contributions that partners make to a marriage or civil partnership, for example, where one party gives up their job and career to raise the children.
Maintenance can be ordered in a variety of ways, such as:
Spousal maintenance
Spousal maintenance can be paid on a periodical basis, i.e. weekly, monthly or annually. The purpose of this payment is to provide sufficient income to meet his/her needs. The judge will consider the level of income the weaker spouse has, or can be expected to have, and what amount is required to bridge any shortfall to meet the party’s reasonable basic needs.
Long-term spousal maintenance is ordered to meet all reasonable needs, which would cover more items such as Christmas and holidays etc. Spousal maintenance can only be paid if the other party has sufficient income to meet the shortfall.
These payments will not last forever; normally there are triggering events bringing them to an end.
Examples of triggering events could be any of the following (usually the earliest, latest or sometimes a combination):
- The death of the payee
- The cohabitation of the payee for a specified minimum period
- The remarriage of the payee
- A specific date
- The date when the youngest child reaches a certain age or ceases full time education, whichever is the later
In some cases, the court may decide that rather than paying spousal maintenance, the party with the additional income needs will receive a greater share of the available capital, i.e. a bigger percentage of the equity in the family home or from the savings pot etc.
The court sometimes defines a maximum period for when maintenance is payable or for a specific period where thereafter it will not be extended.
Where a couple have lived a high standard of living, taking numerous luxurious holidays each year, enjoy expensive meals out, and employ nannies, and there are substantial financial resources available, the court usually calculates the amount payable more generously than a divorce where they enjoyed a ‘normal standard of living’, meals out now and again and the annual odd holiday. The court attempts to calculate a sum that enables the party making the application to maintain the standard of living to which they are accustomed.
Interim maintenance
Interim maintenance, also known as maintenance pending suit, is normally granted by the court if there is an identifiable short-term need for immediate financial assistance to the party in need of financial assistance. For the court to make such an order, a divorce petition must have been issued. This application can be made by any party in divorce, nullity or judicial separation proceedings.
The judge will consider what finances are available to the party making the application, i.e. whether they have savings or other means to meet their outgoings then the court may consider whether these should be used first before asking the other party to pay. If interim maintenance is granted, then this can also be backdated to the date of the divorce petition.
Global maintenance
This form of payment takes into account the other spouse’s needs, including the children’s needs if there has been no agreed or assessed child maintenance. The order is usually detailed and takes into account subsequent child maintenance assessments and the overall payment payable will be reduced. This type of maintenance can be interim or long term.
Child Maintenance
Child maintenance payments are normally resolved through the child maintenance service and generally continue at least until the child reaches the age of 16. If a child leaves school and starts work after they have turned 16, then payments will cease in the September after they have left. However, if a child stays in secondary school to do A levels, the payments end in the September after their exams. The court cannot dismiss child maintenance claims, however spousal maintenance claims can.
How will the Court decide?
The court will need to consider what the parties needs are to cover their short-term essential needs. As the party’s needs are calculated quickly, and may not be exact due to the urgency of the application, the court tends to take a ‘rough and ready’ approach. The court will need to consider the standard of living of the parties during the marriage before considering whether they should order maintenance. Of course, the court will also need to consider the outgoings of the party who will be paying the maintenance and their ability to meet any payments that the court may order.
Since 1987, the courts have been using something known as Duxbury calculations in order to make decisions on spousal maintenance where parties want a clean break. Duxbury calculations are the product of a case, Duxbury v Duxbury, whereby the wife agreed to a clean break on the basis that she would receive a lifetime maintenance award. Her legal team therefore created a calculation that took into account her lifetime income needs and other factors such as her life expectancy in order to estimate what she would need by way of a lump sum. That way she would receive a lump sum rather than receiving spousal maintenance for the rest of her life. The ‘Duxbury tables’ considers the sex, age and the level of annual income needed by the receiving party. These calculations are however only predictions and approximations of income yield, capital growth, inflation and life expectancy. This calculation is only appropriate where parties seek a clean break and where the assets are available to do so.
If you wish to discuss your matter and whether spousal maintenance is payable then please give the specialist divorce lawyers at Duncan Lewis Divorce Solicitors a call. In High Net Worth divorce matters, the income disparity between couples can be significant and needs interpreted differently, which are considerations we can advise on specifically.
About the author: Amanda Willmore is a Chartered Legal Executive and supervisor based is has wide ranging experience in family law and all matters relating to divorce and separation, in particularly in respect of clients with a high net worth.
For advice on any divorce or separation matter contact her via email at AmandaJ@duncanlewis.com or via telephone on 020 7014 7305.
For more information about our specialist team follow the link High Net Divorce Team.
Duncan Lewis is an award-winning Times Top 200 law firm, which is ranked as Top Tier by both the Chambers and Partners and Legal 500 directories. The company represents clients in more than 25 practice areas across 13 key offices nationwide.