Fair Finances, Fair Futures: Understanding Spousal Maintenance

The Court’s approach to spousal maintenance has changed significantly in recent years as the vast majority of women now work outside the home.

Since 2018, the law has been clear that the parties’ income should not be treated as a resource to be automatically shared on divorce. The Courts will always consider whether a clean break is suitable. This is where no maintenance is paid and the parties do not have any ongoing financial ties to one another once the divorce is finalised. 

However, despite these changes, there are cases where a fair financial settlement requires one party to pay maintenance to the other. If, for example, one party has been out of the workforce or earns a significantly lower salary, then spousal maintenance payments may be necessary to ensure both parties can meet their reasonable needs. 

The amount of maintenance required will be determined by looking at the shortfall between the recipient’s reasonable outgoings and their income, as well as the paying party’s ability to pay. Consideration will also be given to the parties’ standard of living during the marriage. There is an expectation that any drop in living standards should be felt equally by both parties. 

A Financial Order will also set out how long any maintenance payments will last. It is rare for maintenance to be ordered until end of life, and the parties are expected to try to become financially independent by maximising their own income. 

There are a number of ways spousal maintenance can be provided for in a Financial Order, aside from regular monthly payments: 

• The recipient could receive a lump sum. This is a one-off payment that can be invested to provide the recipient with an income stream. This has the advantage of providing the parties with a clean break. However, in practice there must be significant capital in the matrimonial pot to create what is known as a “Duxbury Fund”.
• Another option is an Order for Nominal Maintenance. This is usually a payment of £1 per year that leaves the door open for an application to vary the maintenance upwards in the future. This may be suitable where the recipient can support themselves but needs the ongoing security of spousal maintenance, for example if they are caring for young children. 

For more information on spousal maintenance, please contact Rebecca Curran, Trainee CILEX Lawyer in the Family Law Department at SE-Solicitors at rcurran@se-solicitors.co.uk.