How is spousal maintenance calculated?
Determining whether someone has a claim for spousal maintenance involves calculating the following:
The reasonable annual needs of the payee (including any child related costs) less their net income from all sources, any child support payable pursuant to a Child Maintenance Service calculation/assessment, child benefit and any other state benefits to which the payee should be entitled; and
- The payer’s net income from all sources plus any other income to which they are entitled, less their reasonable annual needs and any child support payable to the payee pursuant to a Child Maintenance Service calculation/assessment
- If the calculation at 1) gives a deficit and at 2), a surplus, then spousal maintenance should be payable as part of a financial settlement, unless there are sufficient resources to meet a future maintenance commitment, through a one-off capital payment to achieve a full clean break.
There may be disagreement over whether a proposed budget is excessive and should be pared down; much will depend upon the standard of living enjoyed during the marriage or civil partnership when assessing future reasonable income needs. Also, there may be a dispute over whether either party’s earning capacity is being fully utilised and whether some aspects of the payer’s income (such as discretionary bonuses) are sufficiently consistent to be considered.
Our team of specialist solicitors can help with a range of matters relating to spousal maintenance and divorce, get in touch with a member of the team for more information, advice and guidance.
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When is spousal maintenance needed?
The Court is under a duty to try to achieve a full clean break, if possible. However, there is usually insufficient surplus capital on a divorce to achieve this, in addition to meeting housing and other capital needs and so payment of spousal maintenance is often a necessity.
In addition to establishing a fair rate of spousal maintenance, it is also necessary to consider how long the term of dependency should last. This will depend upon how long it is likely to take the payee to achieve financial independence without suffering “undue financial hardship”.
The appropriate rate and term of spousal maintenance are areas which are not black and white and are open to a fairly wide discretion by the Court.
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Our team of family solicitors adopt a personal approach to working with our clients to help provide peace of mind knowing that your case is in the hands of understanding experts. Learn more about Ellis Jones, our approach, culture, values and more.
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