Areas of law
Spousal Maintenance
You might have heard spousal maintenance referred to as alimony or maintenance.
Spousal maintenance is where one spouse has a need for financial support, and where the other spouse has the financial means to provide it.
This arrangement can apply to either married or defacto relationships. It is a very mathematical approach that is taken once a spouse clearly establishes their financial need, and where the other spouse clearly has capacity to pay.
Here are some points to consider in relation to spousal maintenance:
- Before an arrangement can be made, the spouse who has the financial need must demonstrate that their weekly expenses exceed their income, creating a financial deficiency.
- After a couple separates, it’s ideal for both spouses to maintain a standard of living similar to what they previously enjoyed. However, if financial resources are insufficient, either or both spouses’ standard of living may need to be lower.
- Having said that, spousal maintenance is not intended to allow either spouse to live at a level of considerable luxury merely because the other spouse is very wealthy. There is no general rule that the pre-separation standard of living should be maintained simply because the other spouse can afford to do so.
- When determining a spouse’s capacity to pay maintenance, income is not the only thing that is considered. What property someone owns, and their access to financial resources and earning capacity are also factored in.
- A spouse is not required to use all cash savings that they have or to reduce the value of the pool to allow them to meet their day to day living expenses.