Spousal Maintenance Can Help Provide Financial Support After A Divorce or Separation
Spousal maintenance is a vital part of the family law landscape in Australia. It ensures that a partner who cannot support themselves after the end of a marriage or de facto relationship receives the financial support they need.
This article outlines the essentials of spousal maintenance in Australia, the types of relationships where it is more likely to be applicable, how maintenance is calculated, and the process to apply for it.
De Facto and Marital Relationships & Spousal Maintenance In Australia
Spousal maintenance refers to ongoing financial support paid by one partner to the other after a relationship ends. This is particularly relevant when one partner, typically the lower-earning individual, is unable to maintain a reasonable standard of living after separation.
The primary goal of spousal maintenance is to ensure that the receiving partner’s financial needs are met, particularly when they cannot support themselves independently.
Unlike child support, which covers the expenses related to the children of the relationship, spousal maintenance is focused solely on the needs of the spouse or former de facto partner. It is governed by the Family Law Act and is typically awarded based on financial hardship or an inability to support oneself.
Who Is Likely To Need Spousal Maintenance?
There are several key scenarios in which one partner may be entitled to receive spousal maintenance.
These typically include situations such as:
- Stay-at-home parents: Partners who have stayed at home to raise children or manage the household, forgoing employment opportunities, are often in a position where they require spousal maintenance to help meet their needs.
- Health or disability: A partner who suffers from health issues or a disability may struggle to support themselves after separation, making spousal maintenance essential.
- Disparity in earning capacity: If there is a significant income gap between the two parties, particularly if one party has been the primary earner throughout the relationship, the lower-earning partner may be entitled to spousal maintenance.
In these cases, the Federal Circuit and Family Court of Australia will assess the individual’s capacity to become self-supporting and the other party’s financial situation. This is often done at the same time as property settlement.
Who Pays Spousal Maintenance?
In many cases, spousal maintenance is paid by the higher-earning partner, but this isn’t always the case. The decision is made based on the financial situation of both individuals.
Factors such as:
- Income: Does the paying party have sufficient income to contribute to maintenance?
- Property and assets: The court will consider both parties’ financial resources, including property, savings, and investments.
- Financial obligations: If the paying party has other significant financial commitments (such as child support), this will be factored in when determining the amount they need to pay.
The court ensures that the lower-earning partner receives adequate support without placing an undue burden on the payer. Spousal maintenance arrangements can provide financial assistance in the short-term, while one party ‘gets back on their feet’, or over the long-term.
Types Of Relationships Where Spousal Maintenance Is More Likely
Certain types of relationships tend to result in spousal maintenance more often, particularly where one party has sacrificed career advancement to manage the household or raise children.
For example:
- Traditional gender roles: In many cases, one spouse (often the wife) has stayed home to manage the household while the other spouse worked. This makes it difficult for the stay-at-home spouse to find work or generate income post-separation. In these cases, the stay-at-home parent may be entitled to receive maintenance.
- Long marriages: Partners who have been married for an extended period often face more significant difficulties when the relationship ends, especially if one partner has not worked for many years.
- Non-working partners in de facto relationships: Similar to marriages, in de facto relationships where one party has stayed home to care for children or manage the household, spousal maintenance may be required if that partner cannot support themselves after separation.
How Is Spousal Maintenance Calculated?
The amount and duration of spousal maintenance is calculated based on several key factors, including:
- Income and property of both parties: The court looks at both parties’ taxable income, assets, and liabilities. It will also consider whether either party can access additional financial resources.
- Living expenses: The financial needs of the recipient, including housing, utility bills, groceries and other living expenses, are considered when determining the amount of support required.
- Earning capacity: The court will assess whether the recipient has the ability to support themselves through employment. This includes evaluating whether the person can realistically find suitable work based on their skills, qualifications, and health.
- Standard of living: The court will also consider the standard of living enjoyed during the relationship, ensuring that the recipient is not placed in an untenable financial situation.
The formula for spousal maintenance will be tailored to each case, with an emphasis on fairness and ensuring that both parties can maintain a reasonable quality of life.
Duration Of Spousal Maintenance Payments
Spousal maintenance is not necessarily permanent and can be either short-term or long-term, depending on the circumstances. It is often awarded on a temporary basis, giving the recipient time to become financially independent.
However, in cases where one partner has a permanent disability, illness or other factors preventing them from obtaining employment, spousal maintenance may continue indefinitely. If the recipient finds gainful employment or their financial situation improves, the amount of maintenance may be adjusted or terminated.
How To Apply For Spousal Maintenance
If you believe you are entitled to spousal maintenance or are required to pay it, the process typically involves the following steps:
- Attempt informal resolution: Before applying to the Federal Circuit and Family Court of Australia, it is often advised to try and reach an agreement with the other party. Mediation or informal negotiations can be effective in resolving the issue without court intervention.
- Application to the Federal Circuit and Family Court of Australia: If informal resolution is not successful, you can apply for spousal maintenance through the Federal and Family Court of Australia. This involves filing an application and submitting supporting financial documentation, including details about your income, expenses, and assets.
- Court proceedings: If the case goes to court, both parties will present their case, and a judge will determine the amount and duration of the spousal maintenance payments. The court will take into account all relevant financial circumstances.
- Legal representation: Because spousal maintenance applications can be complex, it is highly recommended to seek legal advice from a family law expert. A lawyer can help you navigate the process and ensure your interests are properly represented.
Modification & Termination Of Spousal Maintenance
After a spousal maintenance order is made, either party may request changes to the terms. These requests can be made if there is a significant change in circumstances, such as a change in income, health, or other financial obligations.
For example, if the paying party experiences a sudden loss of income or if the recipient finds stable employment, they can seek a review of the existing maintenance order. Similarly, if the recipient’s situation improves significantly, they may no longer need financial support, and maintenance payments can be reduced or stopped.
Seeking Legal Advice For Spousal Maintenance Payments
Whether you’re seeking to apply for maintenance or need to understand your responsibilities, seeking legal guidance is crucial to ensure a fair and reasonable outcome for both parties. The nuances of spousal maintenance can be challenging, which is why it is essential to get legal advice from a spousal maintenance lawyer who can help you understand your rights and obligations.
Conclusion
Spousal maintenance is a critical aspect of post-relationship financial support in Australia, particularly for individuals who have sacrificed their earning capacity or are unable to support themselves following the breakdown of a marriage or de facto relationship.
If you require advice regarding your situation, book in a free 15-minute consultation with our team at Advance Family Law. We can help you understand what spousal maintenance is, assist you with negotiations, mediation and court applications, ensuring that you are guided through the process in the best possible way.