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Family Law calendar    Sep 28, 2016

Family Law: Back to Basics: What is spousal maintenance?

When a couple separates, the financial implications can be widespread. A lesser known financial implication is spousal maintenance.

When a couple separates, the financial implications can be widespread. For this reason, it is important that you are equipped with knowledge about all the possible implications of your separation. We have already discussed property settlements, gifts, windfalls and child support as possible financial implications of your separation. However, a lesser known financial implication is spousal maintenance.

What is Spousal Maintenance?

Spousal maintenance is financial support paid by one former party to a marriage to the other in circumstances where the receiving party is unable to adequately support themselves post-separation.

When is Spousal Maintenance required?

When considering whether to make an order for spousal maintenance, the court will consider a number of factors. The primary factors considered are the needs of the party applying for support and the paying party’s capacity to pay.

The court also considers other factors like the parties’ ages, health, income, assets, financial resources, ability to work, standard of living and whether the marriage has affected your ability to work. Whether there are children under the age of 18 living with one party will also be taken into account.

It is important to note that spousal maintenance is not automatic. Often, the needs of the separating parties can be addressed in the property settlement when considering future needs. Spousal maintenance differs in that it is a regular ongoing payment model as opposed to a lump sum.

How long will I be required to pay Spousal Maintenance?

This largely determines on the terms of your specific orders for spousal maintenance. Since it is so intimately dependent on one party being unable to support itself and another party being capable of paying support, the length of time for which maintenance must be paid can vary dramatically from couple to couple. Sometimes the finishing date may be expressed simply as a length of time (eg. 2 years). More often, spousal maintenance will cease upon a specific event occurring, such as the receiving party completing a retraining program or entering the workforce.

However, one generalisation which can be made is that spousal maintenance will usually cease upon the receiving party marrying another person. In the instance of starting a de facto relationship, the court will consider the financial circumstances of the parties in a de facto relationship to decide whether spousal maintenance should be stopped.

If you have a family law matter, concerns about your finances in light of a family law property settlement questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au.

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 This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.

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Finance, business and family law, family law property settlement, money and family law, family law property settlement in NSW

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