Spousal maintenance: when is it awarded and how is it calculated?
It is widely believed in the UK that a spouse is always entitled to half of the other spouse’s income and assets as a matter of course. However, this is not true, and the realities of spousal maintenance as part of a divorce settlement are rather more subtle.
What is spousal maintenance?
Spousal maintenance refers to financial support that one spouse may be required to pay to the other following a divorce or separation. It is sometimes referred to as a divorce settlement. The purpose of spousal maintenance is to help the financially weaker spouse maintain a reasonable standard of living. It is typically awarded when one spouse has a significantly higher income or earning capacity than the other and the lower-earning spouse needs financial assistance to meet their basic needs.
When is spousal maintenance awarded?
There are three types of spousal maintenance awards, as follows:
- Needs-Based Maintenance: Spousal maintenance is often awarded when one spouse (the applicant) can demonstrate a financial need. This can happen when the applicant is unable to support themselves adequately due to factors like childcare responsibilities, health issues, or limited earning potential.
- Compensatory Maintenance: In some cases, maintenance may be awarded to compensate a spouse for sacrifices made during the marriage, such as giving up a career to support the other spouse's career or education.
- Clean Break Orders: The courts in the UK generally prefer to make Clean Break Orders, which means ending financial ties between the parties. However, in some cases, maintenance may be necessary to ensure a fair outcome.
How is spousal maintenance calculated?
The calculation of spousal maintenance in the UK is not fixed and can vary depending on the specific circumstances of the case. It's determined through negotiation or by a court order. There is no statutory formula for calculating spousal maintenance, but the following factors are typically considered:
- Financial needs: The court will assess the financial needs of the recipient spouse, taking into account living expenses, housing costs, and other financial obligations. In order to facilitate this, both parties will need to provide the court with full financial disclosure, setting out their respective income, capital, debts and obligations.
- Income and earning capacity: The court will consider the income and earning capacity of both spouses. This includes their current income, future earning potential, and any assets or financial resources.
- Standard of living: The court may aim to maintain a reasonable standard of living for the recipient spouse, similar to the level that they enjoyed during the marriage. The court is not obliged to put the financially weaker party in any better position than the one they were in during the marriage.
- Duration: The duration of the maintenance order can vary, and it may be temporary or indefinite. The court will consider the length of the marriage and other relevant factors when determining the duration.
- Childcare responsibilities: If one spouse has primary custody of the children, this can be a factor in the calculation, as it may impact their ability to work and support themselves. Note that financial arrangements for any children of the marriage are a separate issue. Divorcing spouses may or may not have any financial obligations to each other, but parents always have a financial obligation to their children. This remains true even with Clean Break Orders.
- Special Circumstances: Any special circumstances, such as health issues, disabilities, or sacrifices made during the marriage, will also be taken into account. For example, if a financially weaker spouse originates from a foreign country and has little in the way of access to immediate family support.
It is important to understand that the courts will always consider each case on its own merits and circumstances, and the outcome can vary depending on the specific details of the situation.
Spousal maintenance, or spousal support, is a complex and often contentious issue, so it's very important to seek specialised and experienced legal advice if you are facing a divorce or separation and have questions about spousal maintenance.
For further information and trusted legal advice regarding divorce and children law, get in touch with us at Carlsons Solicitors.