What is Spousal Maintenance and How is it Calculated?

Following separation, there will commonly be payments for two different households, perhaps child maintenance too. It is common for separating couples to have some concern about how they will manage financially until a settlement has been agreed with their spouse. One party may require additional financial support from the other to meet outgoings, known as spousal maintenance (also known as periodical payments).

Either party can request spousal maintenance from the other as part of general negotiations or make an application to court if appropriate payments cannot be agreed.

However, spousal maintenance will not be applicable in every case. When considering if spousal maintenance should be payable, regard should be given to the s.25 Matrimonial Causes Act 1973 factors, alongside general principles of “fairness” of maintenance payments being made.

Where the financial resources of the parties are limited, making spousal maintenance payments to meet the needs of the parties will likely be the limit of what is achievable. The parties will need to set out their monthly and annual financial expenditure (often as part of a wider disclosure exercise using Form E). When considering what those monthly needs are, consideration should be given to the standard of living enjoyed through the marriage. The needs should be generously interpreted where possible.

Unlike child maintenance payments, there is no formula or online calculator for assessing spousal maintenance upon separation. In broad terms, spousal maintenance is calculated by balancing the income of the parties against the parties’ monthly and annual income needs. Any spousal maintenance payments that might be made are to be considered with reference to the discretionary checklist of factors set out in s. 25 Matrimonial Causes Act.

If you are receiving spousal maintenance as part of a court order, the payments will automatically end fi you remarry. By contrast, if you are providing spousal maintenance payments to your former spouse and elect to remarry, your obligation to maintain those payments will continue irrespective of your new relationship status.

The impact of a new cohabitation relationship can be a little trickier to assess – what amounts to cohabitation can be uncertain. Unless a couple are living in the same house seven days a week, it can be difficult to state for certain whether they are cohabiting or not. For an individual receiving spousal maintenance, a new cohabiting relationship will not automatically terminate spousal maintenance orders. However, it may give rise to further discussions on the rate of payments made (quantum), given the receiving party would presumably be benefitting from a financial contribution from their new cohabiting partner to the newly shared household.

The court has the ability to make interim spousal maintenance orders known as maintenance pending suit.

An application to the court for interim maintenance can be made at any time during the course of ongoing divorce proceedings. In an application for interim spousal maintenance, the court will concentrate on the applicant party’s immediate and interim needs only, so a separate income needs budget will need to be created to the wider claim for income needs that likely forms part of the Form E disclosure.

Either the paying or the receiving party can apply to vary the level (quantum) of spousal maintenance payments ordered during the payment period (term).

Factors such as illness, redundancy, inheritance or a new relationship may play a part in the court’s assessment of any changes to maintenance that might be reasonable. There are no criteria other than remarriage of the receiving party that automatically end spousal maintenance payments and each application is considered on its own merits, again with reference to the s.25 factors.

It is possible for spousal maintenance payments to be capitalised by the court, although this may not be suitable or possible in every case.

The court is obliged to try and secure a clean break in financial settlement cases and as a general rule, would prefer not to continue the financial relationship between separating spouses, if appropriate to avoid doing so.

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This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.