What is spousal maintenance?
Spousal maintenance is not the same as child maintenance. Child maintenance must be paid in law where there are children, and the amount to be paid is determined by the Child Maintenance Act.
Maintenance is an amount awarded by the Courts to be paid by one person to another when a couple divorce or end their civil partnership.
It is only awarded if one party cannot support themselves without payments from the other. It can be awarded for a specified term or for life in some cases. The recipient will lose their right to receive the maintenance if they re-marry.
Maintenance is usually negotiated as part of making a financial settlement upon the end of a marriage or civil partnership, meaning it can be agreed voluntarily between the separating couple.
How is spousal maintenance calculated UK?
Spousal maintenance payments depends on the recipient’s needs, own income, and ability to earn income. There are no set formulas, and the amount payable depends on the payer’s net income and their own needs, amongst other factors.
Entitled to spousal maintenance is usually relevant in cases where one party earns considerably more than the other, and the needs of the recipient cannot be met from their own income, and they need financial support.
How does the law approach the issue of spouse maintenance?
Wherever practical, the Court will seek to achieve a financial separation between the parties. This is called a clean break. This means that there will be no ongoing financial links between the parties except for child maintenance.
If a clean break cannot be achieved immediately, then the Court has the power to order spousal maintenance for a fixed period to achieve a clean break in the future.
The law is based on your future needs. It is generally accepted that where one spouse has a much higher income than the other, there may need to be a period of ongoing financial spousal support to avoid undue hardship or affect the well-being of any children.
The approach taken by law is a complex balancing exercise in trying to achieve fairness. They will consider both parties’ reasonable needs and try to achieve an order that meets those needs. The parties’ previous lifestyle is a factor to be taken into consideration, but the reality is that both parties will be expected to cut back in a situation where the needs of two households are to be met by what was previously only one.
Consideration will be given by the court as to how much of the recipient’s reasonable needs can be met by their own resources. These will include not only any earned income but also child support, tax credits and child benefit and any other income, whether from investments/capital, which could be used to generate an income.
What are needs?
Every family’s budget is different and what would be considered reasonable for one persons’ needs may be very different to what is reasonable for another persons’ needs. This is where previous lifestyle would be taken into account. If you were paying for private education and healthcare before your relationship breakdown, it may be considered reasonable to continue these post breakdowns if the household budgets allow.
Financial needs are expenditures that are essential to be able to live and work. Needs are typically considered your daily living expenses. They are the recurring expenses that are likely to eat up a large chunk of your income each month. These include:
- Housing
- Transportation
- Childcare expenses.
- Insurances
- Gas and electricity.
- Council tax
- Food
- Medication
- School costs
- Debt repayments
- Clothing
Needs vs Wants.
The difference between needs vs. wants is relatively straightforward. Wants encompass everything else that you spend money on. They are considered discretionary spending or costs that are not required to meet your basic needs to lead a healthy life.
Wants are expenses that help you live more comfortably. They are the things you buy for fun or leisure. You could live without them, but you enjoy your life more when you have them. For instance, food is a need, but daily lunches out at a restaurant or cafe are likely more of a want.
Wants typically include things such as:
- Holidays
- Entertainment like theatre, cinema, and concerts.
- Dining out
- Designer clothing or luxuries.
- Gym memberships.
- Monthly subscriptions or memberships
- TV or music streaming accounts.
To help you determine whether you need to apply for spousal maintenance, ask yourself the following questions:
- What are your financial needs?
- What is your income potential?
- Can you meet your financial needs without any spousal support from your ex?
- Have you been married for a long time, and did you quit your job to focus on being a homemaker?
- At your age, is it possible to establish a career that will allow you to maintain your lifestyle, or would it be difficult?
- When are your needs likely to change?
- Do you have children under 18 who need support?
- Can you re-train to get a new career or set up a new business?
- Do you plan on getting married again soon or considering cohabiting?
What happens to maintenance if one of us remarries?
If the recipient of spousal maintenance remarries, then maintenance automatically stops upon the remarriage.