Spousal Maintenance

Coronavirus is making us look at every aspect of our lives, from how we socialise and exercise to how and where we work. With constant talk of hospital admission figures and mortality rates many of you are worried about raising your fears about coronavirus and financial concerns. However, whether you pay or receive either child maintenance or spousal maintenance , payments of maintenance may need to be reviewed and resolved. In this blog we look at child support, spousal maintenance and the impact of coronavirus. Online family law and maintenance solicitors Cheshire and Manchester based Evolve Family Law solicitors are working online to advise existing and new family law clients on all coronavirus related family law questions from child contact, help with leaving an abusive relationship during lockdown or the financial issues arising from Covid 19. If you need legal assistance call us or complete our online enquiry form to set up a video conference or telephone appointment. Coronavirus and spousal maintenance and child support payments When you agree to pay or to receive an amount in spousal maintenance or child support it is often assumed that the amount you are expected to pay, or that you will receive, won't change all that much . However, whether it is spousal maintenance or child support, the amount you pay or receive in financial support can be reviewed either upwards or downwards. Many of you are very worried about coronavirus and your jobs or fear that your income from self-employment will reduce drastically (if not disappear altogether) over the next few months. Whilst the government has assured us all that financial help is at hand, for both the employed and the self-employed, there are reports that people are confused about the eligibility rules for government help and are worried about how they can pay spousal maintenance or child support now.   If you are the person who is receiving the maintenance payment it is equally worrying as many feel that they are in an impossible position, having taken out mortgages and financial commitments, on the basis of promised or ordered spousal maintenance or child support.   Spousal maintenance orders and Covid-19 Spousal maintenance is either paid on a voluntary basis between husband and wife or civil partner or under a spousal maintenance court order.   If you are paying or receiving spousal maintenance under a court order then the first thing that you should look at is the wording of the financial court order and the spousal maintenance clause. If you are in any doubt about the wording or meaning of the spousal maintenance clause then it is best to take legal advice.   There are a number of ways in which spousal maintenance court orders can require the payment of spousal maintenance, such as: Joint lives spousal maintenance – spousal maintenance is payable until the death or the re-marriage of the person receiving the spousal maintenance payments Time limited spousal maintenance – spousal maintenance is paid for a set period of time and then stops on a date specified in the court order. In some cases, the person receiving the spousal maintenance can apply to extend the length of time that spousal maintenance is paid for but they have to apply to court to extend the length of time that spousal maintenance is paid for prior to the expiry of the order. In other court orders the spousal maintenance is said to be time limited with no option to extend the length of time that it is paid for.   Can spousal maintenance orders be changed? Spousal maintenance orders can be changed by court order or by agreement. If your financial circumstances have changed because of coronavirus and you are paying or receiving spousal maintenance the government is urging you to try to reach an agreement with your ex-partner over spousal maintenance.   Family law solicitors say that whilst it is important, if possible, to reach an agreement over changes in spousal maintenance payments any agreement should be temporary or a holding agreement until the Covid 19 position is clearer.   Every family situation is different so you may need specialist legal advice on what to do about spousal maintenance payments. Some payments may need to stop and others may need to reduce or increase. Here are two case examples: A dentist is no longer able to work but because he has an employer who is continuing to pay him then the spousal maintenance can continue at the same rate for the time being. The spousal maintenance might need to reduce or stop if the employer is forced to stop the dentist’s salary or the salary is reduced to the cap set by the government coronavirus income scheme A National Health Service consultant is not affected financially by Covid 19 but his ex-wife has lost her job in the travel industry. Depending on her circumstances her spousal maintenance may need to increase on a temporary basis until she can get another job. If her spousal maintenance is a time limited order she may need to ask the court to extend the period of the spousal maintenance court order.   Tips on how to change spousal maintenance payments by agreement In these highly unusual times the focus is on working together. That is the message that the government is giving when it comes to sorting out the changes to child care , spousal maintenance or child support that are required because of coronavirus. Tips on how to change spousal maintenance payments by agreement include:   Communicate with your ex either directly, through a trusted friend or your family solicitor. If you don’t tell your ex what is going on and be upfront about how Covid-19 has affected you financially then they will expect the spousal maintenance payments to continue Provide paperwork – family law solicitors say there is often an element of mistrust between separated spouses and so if you want your ex-spouse to agree to a reduction in spousal maintenance you will need to provide the supporting paperwork to show that you have lost your job or that your hours have been reduced or a bonus scheme scrapped Reflect on any discussions with your ex and don’t be rushed into making long term decisions. After all your ex-spouse may get a new job or the government scheme may mean that their income isn’t as badly affected as first thought. You should not agree to any major changes in the spousal maintenance order or agree to the cessation of payments and cancellation of the spousal maintenance order without first taking legal advice Record your agreement – if you are able to reach a spousal maintenance agreement with your ex-spouse then you need to record the agreement in case one of you changes your mind. If there is no clear recorded agreement then your ex could apply to court to enforce the spousal maintenance order and ask for payment of arrears of spousal maintenance. They may not be successful in that court application if there is a clear agreement drawn up by you (or your solicitors) that spousal maintenance is being changed temporarily and the reasons why and when spousal maintenance will be reviewed again, for example, if the payer gets a new job or a government income subsidy Understand the court options- it is important to know that if your ex-spouse won't agree to a reduction or temporary stopping of spousal maintenance what your legal options are. You could apply to court to vary the spousal maintenance order to reduce or stop the payments. Your ex-spouse could apply to court for payment of arrears of spousal maintenance and to enforce the spousal maintenance order. The court decision would be based on all the circumstances of your case and the ability of the paying person to pay spousal maintenance. If you are upfront with the paperwork relating to the change in income this may make a court application to formally vary the spousal maintenance order unnecessary. [related_posts] Can child maintenance be changed? Covid-19 and the financial fallout and economic downturn will affect child support payments as well as spousal maintenance orders. In most families child support is either paid as a voluntary arrangement between you and your ex-partner or under a child maintenance service assessment. It is rare for there to be a child support court order as the court only has limited jurisdiction to make child support orders.   Again family law solicitors are recommending that parents talk to one another about child maintenance and to see whether the child support needs to be changed because of a change in the payer’s financial circumstances. If the payments are made under a child maintenance service assessment then you may need to ask the agency to carry out a new assessment. Online family law and maintenance solicitors Cheshire and Manchester based Evolve Family Law solicitors are here to answer all your family law questions whether it is a coronavirus related family law question, child contact, help with leaving an abusive relationship or financial issues arising from coronavirus. If you legal help call us or complete our online enquiry form to set up a video conference or telephone appointment.

My partner and I can't agree whether I'm entitled to spousal maintenance. What can I do? If you can't reach an agreement over the amount of spousal maintenance then you can make an application to Court. The Court doesn’t have a set formula to say how much, if any, spousal maintenance should be paid. The Court has a lot of discretion to make what orders it thinks appropriate. The Court can also order lump sum payments and property transfer orders. These are separate but linked to spousal maintenance orders. This means that the less capital that a husband or wife receives then the greater the probability that they may need spousal maintenance in order to meet their income needs. Reaching a financial settlement is a bit like putting a jigsaw together as it is important that the capital, pension and income settlements meet needs. If I am entitled to spousal maintenance how long will the spousal maintenance last for? The Court can order different types of spousal maintenance or no spousal maintenance. Joint lives maintenance is often called the ‘’meal ticket for life’’ spousal maintenance in the media. Why? It is because the spousal maintenance continues throughout the joint lives of the payer and the payee until further order of the Court or until the payee remarries. A husband or wife can apply back to the Court to change the amount of maintenance payable upwards or downwards if there is a change in circumstances. It is also possible for the payer to apply to the Court to stop the spousal maintenance payments if there is a change in circumstances. Term spousal maintenance continues for a set number of years. The level of spousal maintenance can be changed before the term expires (but not afterwards). The term or length of time that spousal maintenance is paid for can be extended by the Court although there must be a good reason to do so and the application must be made before the term maintenance order expires. Term spousal maintenance with a bar is exactly the same as a term spousal maintenance order save that the length of time that the maintenance is paid for cannot be extended. Clean break order is when no spousal maintenance is payable. If the Court makes a spousal maintenance clean break order then a husband and wife can’t make a maintenance application, even if there is a change in their personal financial circumstances at a later date. I am worried about if I am entitled to spousal maintenance. What should I do? The best thing to do is to get some early legal advice. Why? If you are entitled to spousal maintenance then an urgent Court application for what is known as ‘’maintence pending suit’’ may be necessary. Even if your situation isn’t urgent it pays to get legal advice so that you understand what steps need to be taken to ensure that you are either able to negotiate spousal maintenance; get a Court spousal maintenance order; or apply to change the amount or extend the time that spousal maintenance is payable for. In some situations that involves looking at your ex-spouses income and financial circumstances and in others looking at your outgoings, career prospects and family circumstances. [related_posts] If you have been reading the news about the end of the "meal ticket for life" divorce case of Mr and Mrs Mills and you are either getting divorced or are a divorcee you may be concerned about the question ‘’am I entitled to spousal maintenance?”. It wouldn't be unreasonable to assume from some of the press coverage of Mr and Mrs Mill’s financial Court proceedings that spousal maintenance is an old fashioned concept and that after their divorce spouses will, in future, have to stand on their own two feet and be financially independent of one another. A careful read of the Court decision in Mr and Mrs Mill’s case reveals that the question "am I entitled to spousal maintenance" is still a very valid question. How does the Mills decision affect the question ‘’am I entitled to spousal maintenance?’’ Why has Mr and Mills case hit the headlines? In the Mills case the dispute was over whether Mr Mills should pay his ex-wife increased monthly spousal maintenance payments. When the couple split up the Court ordered Mr Mills to pay spousal maintenance to Mrs Mills. In addition the Court gave Mrs Mills enough capital to buy a house. Fast forward nearly a decade and Mr Mills wanted to reduce the spousal maintenance payments and Mrs Mills wanted the spousal maintenance payments to increase as she’d made unwise financial investments and was in debt and renting a house. She therefore argued that as she had increased outgoings she needed more spousal maintenance to meet her basic needs. The Supreme Court has ruled that the original level of spousal maintenance payments must continue but that they won't be increased. So, those who say that the Mills case stops the ‘’meal ticket for life’’ are wrong. However the Mills case and other recent Court decisions do show an increased concern on the part of the divorce Court to really analyse if spousal maintenance should be paid and if so the amount of the spousal maintenance and how long it should be paid for. This is with a view to both husband and wife in appropriate family situations, being able to achieve financial independence of one another. One of the strong reasons behind the Court decision not to increase Mrs Mill’s spousal maintenance payments was the fact that at the time of the first financial proceedings Mrs Mills had been given enough cash to buy a house and so if she’d used the money wisely she wouldn't have needed more spousal maintenance to pay her debts and rent. The Court concluded her ex-spouse shouldn’t be penalised by her poor financial decisions a decade after the marriage had broken down. For help with your entitlement to spousal maintenance or to review an existing spousal maintenance order please contact us.  

Spousal maintenance is always a thorny topic, in many cases the person making the payments thinks that they are paying too much and for too long and the person receiving the spousal maintenance thinks that they are getting too little, taking into account child care responsibilities, lifestyle during the marriage or lack of qualifications or career experience over a long marriage. A husband and wife locked in a Court battle over maintenance payments after their separation in 2012 hit the news after a Court of Appeal ruling. The couple, William Waggott and his former wife, Kim Waggott split up in 2012, after a 21 year marriage. Mr Waggott was ordered to pay his wife a lump sum of nearly 10 million and spousal maintenance for life at the rate of £175,000 a year. The one thing that the husband and wife were agreed on was that the original Court ruling was unfair; the husband thinking that spousal maintenance for life gave Mrs Waggott no financial incentive to get a job and the wife thinking the amount was too low and needed to be adjusted by the date of the Court of Appeal hearing to take into account cost of living increases and Mr Waggott’s income. The battle lines were drawn with Mr Waggott applying to Court to stop the spousal maintenance for life and Mrs Waggott asking the Court for more maintenance. The Court of Appeal has ruled that Mrs Waggott’s spousal maintenance payments shouldn’t continue for life but instead end in three years’ time. The Court has also said that the amount of maintenance won't increase. As well as losing her spousal maintenance in three years Mrs Waggott also faces substantial legal costs. Reasoning behind the Court decision Mrs Waggott argued that her former husband's earnings capacity had been created during their 21 year marriage and that it was only right that she should continue to share the fruit of the marriage as her ex-husband's ongoing income was still a ‘’matrimonial asset’’. It was also argued, on Mrs Waggott’s behalf, that she should not have to invest some of the near 10 million she had received in 2012 to generate an income for herself, instead of getting ongoing spousal maintenance. It was said that would mean she was using her share of the capital of the marriage to live off when the 10 million was her entitlement to the family assets generated during the marriage. Mr Justice Moylan ruled that the former husband's future earnings capacity is not a ‘’matrimonial asset’’ and accordingly it doesn’t have to be shared with Mrs Waggott and that the wife could invest some off her lump sum and live off the interest or get employment. The Court is always keen to achieve what is known as a ‘’financial clean break’’ to sever the money ties between a husband and wife as soon as possible after a divorce. That will be achieved in the Waggott’s case in three years’ time when the maintenance payments stop. [related_posts] What does the ruling mean? In the press the Waggott Court of Appeal decision has been hailed as a victory for bread winners and the end of ‘’the meal ticket for life’’ of spousal maintenance. Does the decision mean that? The leading judge was careful to say that he acknowledged that long term maintenance can be required as part of a fair outcome in a divorce . There is therefore a danger in saying that the Waggott decision means there will be an end to spousal maintenance for life. In Mrs Waggott’s case she had received nearly 10 million and both she and her former husband had bought new houses for about 2 million each. That meant Mrs Waggott still had capital and, as importantly, had previously enjoyed a good career and so she could, in the judge’s opinion, adjust to the termination of her spousal maintenance payments without undue hardship. That won't be the case for many families where the economically weaker spouse has used all of their capital sum to pay for a new house, perhaps with a mortgage, and therefore doesn’t have the option of living off interest or the prospect of getting a well-paid job that will pay enough to cover the mortgage and bills. The frustrating thing about family Court decisions is that whilst they lay down principles of law the principles can't be applied rigidly to every family situation. Each Court decision is based on the individual’s personal and financial circumstances. That is why it is so important to get objective legal advice on what a ruling might mean for you and your family. Why? Because there is normally a range of Court orders that a Court could reasonably make in a given family situation rather than one ‘‘right answer’’. That’s why Court litigation is such a lottery as there is always a risk that you could be a loser in a Court battle. In light of this decision many breadwinners will want to review whether they should apply back to Court to stop their spousal maintenance payments for life and others will want advice on how to negotiate a clean break figure following the Court ruling. Equally those receiving spousal maintenance will need legal advice as Mrs Waggott’s case is a clear reminder, to both husband and wives, of the risks and costs of Court litigation. For help with any aspect of divorce and family finances or changes to an existing spousal maintenance order please contact us.