Securing A Fair Settlement
On Divorce
People considering divorce usually think about their homes, their savings and pensions but what some people forget is that there is the concept of spousal maintenance, advises Rubina Vohra of Forbes solicitors
Spousal maintenance is often confused with child maintenance but, in fact, it is only a maintenance payment that is made on behalf of a former husband or wife. The definition is: spousal maintenance is maintenance that is paid by a husband or wife to their former spouse following a divorce, usually paid on a monthly basis and continues for either a defined period or for the remainder of the parties’ life. Spousal maintenance is an amount awarded by the courts to be paid by the spouse with the higher income to the spouse with the lower income when a couple divorce. It is only awarded if one party cannot support themselves without payments from the other.
When going through a divorce most people are expecting there to be a division of assets and a clean break. Ideally, the courts would prefer a clean break order but in certain circumstances it simply does not materialise and there lies the realisation that there has to be an ongoing payment obligation to a husband or a wife. Spousal maintenance is designed to help the financially weaker person adjust to their financial position after divorce. It also ensures the final financial arrangements are fair.
When property and assets are being divided, it might make sense to arrange for a clean break but it is not always possible. Where there is a clean break, there is no spousal maintenance paid. In some cases, there is enough money to ‘buy out’ the financially weaker person’s maintenance claim. This is done by calculating a sum of money that the person can invest and receive an income from, instead of receiving ongoing maintenance payments. Advice needs to be taken when doing this, as it is a very complex area.
The lump sum payment doesn’t have to be paid in one go and can often be made in more than one instalment. For instance, a part payment could be made soon after a court order and the other followed up in a year or potentially when a house is sold. The amount that an ex-husband or wife receives will depend on how much you need to live on, how much income you already have and how much you could potentially earn in the future.
The recipient will lose their right to receive the maintenance if they remarry, however it does not end if they simply cohabit.
Once an agreement has been reached, it should be embodied into a court order.
Rubina Vohra is a Partner in the Family Department and can be contacted on 01254 58000 or email: rubina.vohra@forbessolicitors.co.uk
