Spousal Maintenance
Divorce and Finances
The meaning of financial needs (income)
What principles will the court follow when considering an application for spousal maintenance?
SS v NS (Spousal Maintenance) [2014] EWHC 4183 (Fam), [2015]
Following the divorce of the parties, the Family Division made orders as to the division of matrimonial property.
What is the significance of this decision?
The significance of this decision lies in the comments made by Mostyn J concerning spousal maintenance. Mostyn J outlines his analysis at paragraph 46 and lists the principles which seem to him to be relevant on an application for spousal maintenance, summarised as follows:
- a spousal maintenance award is properly made where the evidence shows that choices made during the marriage have generated hard future needs on the part of the claimant
- an award should only be made by reference to needs, save in a most exceptional case where it can be said that the sharing or compensation principle applies
- where the needs in question are not causally connected to the marriage the award should generally be aimed at alleviating significant hardship
- in every case the court must consider a termination of spousal maintenance with a transition to independence as soon as it is just and reasonable
- if the choice between an extendable term and a joint lives order is finely balanced the statutory steer should militate in favour of the former
- the marital standard of living is relevant to the quantum of spousal maintenance but is not decisive
- the essential task of the judge is not merely to examine the individual items in the claimant’s income budget but also to stand back and to look at the global total and to ask if it represents a fair proportion of the respondent’s available income that should go to the support of the claimant
- where the respondent’s income comprises a base salary and a discretionary bonus the claimant’s award may be equivalently partitioned, with needs of strict necessity being met from the base salary and additional, discretionary, items being met from the bonus on a capped percentage basis
- there is no criterion of exceptionality on an application to extend a term order
- on an application to discharge a joint lives order an examination should be made of the original assumption that it was just too difficult to predict eventual independence, and
- if the choice between an extendable and a non-extendable term is finely balanced the decision should normally be in favour of the economically weaker party
What does this tell us about the nature of income claims?
This decision provides a helpful reference point for the principles underpinning the court’s discretion in this area, highlighting in particular:
- An award should only be made by reference to needs, save in a most exceptional case;
- In every case the court must consider a termination of spousal maintenance;
- The martial standard of living is relevant to the quantum of spousal maintenance but is not decisive, and
- The payment of spousal maintenance may be partitioned where the payee’s income comprises a base salary and discretionary bonus;
If you need assistance in respect of your matrimonial affairs, whether this is in respect of issues concerning a divorce and the related financial aspects, children, injunctions or cohabitation disputes, please contact our offices on 01323 727321 to arrange an appointment.
Please note that the family department offer a free initial 30 minute interview to provide general advice and guidance in relation to your matter.
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