MY DIVORCE | MY WEALTH - PART 6: Spousal Maintenance and Capitalisation of Maintenance  

 

What is Spousal Maintenance?

Spousal maintenance (maintenance) are payments made by one ex-spouse to the other. They will be incorporated into a court order which will include:

1. 1. What amount is to be paid?

   2. When it is to be paid?

   3. How long it should be paid for, for example a set duration, until the occurrence of a specific event or, on some occasions for life.

When looking at maintenance, the court must consider both the income of the payer and the needs of the recipient. The court expects both to maximise their income from other sources, such as salary.

However, the court or the parties may decide to capitalise maintenance. There are Pros and Cons to this, which need exploring and careful consideration, this includes:

1. Can the payer afford to pay a lump sum to capitalise the maintenance?

2. Does the payer want to get rid of the “irritation” of paying monthly payments and then have the benefit of a clean break order?

3. The needs of the recipient

4. Would the recipient prefer an income each month?

5. Is there a possibility of a change to either of the parties financial circumstances?

Either way, there is a gamble element as to whether spousal maintenance is paid on a monthly basis or whether it is capitalised.

Fiona Wilson, Head of Family law
Lawson West Solicitors, Leicester

Lawson West Solicitors has a wealth of experience and expertise in acting for clients in divorce and relationship matters. 

Please call us on 0116 212 1000, or complete our free Contact Us form and we will get in touch as soon as possible.

 

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