How is Spousal Maintenance Calculated?

Spousal Maintenance Calculations

There is no fixed formula for how spousal maintenance is calculated in Australian family law, but courts will assess factors such as:

• Each party’s respective income, assets, and financial responsibilities
• Reasonable living expenses, including loan repayments and other financial needs
• The paying spouse’s financial capacity
• The recipient’s ability to earn their own income
• Any child support obligations
• If any binding financial agreements are in place

There is no official spousal maintenance calculator, and each case is assessed based on specific circumstances.

Eligibility For Spousal Maintenance Or De Facto Spousal Maintenance Payments

In Australia, spousal maintenance applies to both married and de facto couples, under the Family Law Act. Various factors are considered when determining spousal maintenance arrangements to ensure one party is not left without adequate financial resources after a relationship ends.

A party seeking support from their former spouse or de facto partner must demonstrate they cannot adequately support themselves due to factors such as:

• Insufficient income or earning capacity
• Caring for children from the relationship
• Age, health, or other financial circumstances affecting their ability to work

If the other party has the financial capacity to provide support, they may be required to pay spousal maintenance.

Types of Spousal Maintenance

• Periodic maintenance: Regular payments made weekly, fortnightly, or monthly.
• Lump sum spousal maintenance: A one-time payment instead of ongoing financial support.
• Interim maintenance: Temporary financial assistance before the final court decision.
• Urgent spousal maintenance: Quick financial support in emergency situations.

Applying for Spousal Maintenance

A spousal maintenance application can be filed through the Federal Circuit and Family Court of Australia as part of a property settlement or as a stand-alone application. It can also be negotiated privately, and formalised by consent orders or a financial agreement.

The process involves:

1. Gathering financial documents, including taxable income and living expenses.
2. Demonstrating a need for financial assistance.
3. Showing the other party’s ability to pay.
4. Negotiating through collaborative law processes or legal proceedings.

Impact of a New De Facto Relationship

If the recipient enters a new de facto relationship, their entitlement to spousal support may change. The court will assess whether their financial needs are still unmet or if their new partner provides sufficient income.

Seeking Legal Advice

Since spousal maintenance issues vary depending on the circumstances, consulting an experienced spousal maintenance lawyer is crucial. Our team has extensive experience negotiating fair arrangements for parties eligible for spousal maintenance payments or those responding to a request for spousal maintenance.

Our team can help you to:

• Determine how much maintenance you may receive or need to pay.
• Assess eligibility criteria.
• Guide you through the spousal maintenance claim process effectively.
• Negotiate a fair spousal maintenance order or binding financial agreement.
• Alter or terminate existing arrangements.
• Enforce existing agreements.

Conclusion

Spousal maintenance is designed to help a former partner meet their reasonable expenses if they cannot support themselves. The courts consider the parties’ respective incomes, financial needs, and obligations before making a spousal maintenance order.

If you are dealing with spousal maintenance issues, it is recommended that you obtain advice from a trusted family lawyer to ensure fair and appropriate maintenance arrangements. Book a free 15-minute consultation today to learn how spousal maintenance may be calculated based on your unique circumstances.