- What is spousal maintenance?
- What is the purpose of spousal maintenance?
- What determines spousal maintenance?
- Changes to spousal maintenance orders
If you’re divorcing, or separating from your de facto spouse, you may be required to pay (or entitled to receive) spousal maintenance. Spousal maintenance is often sought when a spouse cannot support themselves adequately on their own and the other spouse has the income to do so.
Learn more: divorce payouts
What is spousal maintenance?
Spousal maintenance is similar to child support, but for the spouse rather than the children, for the future needs of your former spouse. It assists them in meeting their reasonable costs of living, such as groceries, utilities, and essential medical costs. You can receive spousal support maintenance whether you were married or in a de facto relationship. It can be paid periodically or as a lump sum, depending on the circumstances.
It’s also important to note that spousal support is not an automatic right. But if one spouse is in need of financial support and it can be established that the other has a means or is able to provide that support, then an application to the court can be made.
What is the purpose of spousal maintenance?
Under the Family Law Act 1975, the purpose of spousal maintenance is to support an ex-spouse if there is a substantial difference in the incomes between both spouses (at the date of separation)
It is also designed to support the spouse that took extended leave from the workforce to raise children of the relationship.
What determines spousal maintenance?
While there is no prescribed formula for determining spousal support, the court does take the following into consideration:
- The income, property and financial resources of both spouses, and their mental/physical capacity to gain employment.
- If the marriage/relationship impacted a spouse’s earning capacity.
- Age and health of both spouses.
- Whether either spouse cares for a child under 18 years of age.
- What is considered a suitable standard of living.
Learn more: What is considered fair in family law
What qualifies someone for spousal support?
You are entitled to claim for spousal support if you are unable to financially support yourself because:
- You care for a child of the relationship who is under 18 years of age and;
- You took significant leave from the workforce because of this.
- Your age, physical or mental incapacity limits your ability to gain employment.
- Any other adequate reason.
How is spousal maintenance calculated?
A trustworthy online spousal support calculator does not exist since there are too many variables to consider. The steps below can be used to calculate the amount of spousal support that is payable.
- Determine your income tax.
- Calculate any child support that may be owed.
- To verify your income tax, ask your accountant.
- Total your appropriate out-of-pocket costs.
- Create a thorough budget that details your earnings and outlays for the ensuing six to twelve months.
- For the opposite party, do the same.
- Use the information above to consult a family lawyer with experience. Child support and maintenance is our specialty. We can let you know if and how much spousal maintenance is due. To provide you with a no-obligation initial consultation, we offer a discounted cost.
How long do you pay spousal support?
There are no time limits for how long spousal support needs to be paid. However, it can stop or change depending on the following factors:
- The spouse receiving the financial support remarries or starts a de facto relationship.
- False evidence or material facts were hidden when the order was made.
- The amount is no longer adequate or proper.
- The financial circumstances of each party have changed.
Changes to spousal maintenance orders
In the event of a substantial change in circumstances, such as a change in income, employment position, or health, spousal maintenance agreements may be adjusted. Any party may request a modification of the initial order from the court.
How Owen Hodge’s experienced spousal maintenance lawyers can help
Owen Hodge’s experienced spousal maintenance lawyers prioritise protecting your financial security and maintaining an even playing field to ensure you receive the best outcome possible.
Family Law Team
Frequently Asked Questions
The terms of your spousal maintenance agreement can be put into a Binding Financial Agreement. Financial agreements pertaining to matters of spousal support may be signed within the following time frames:
- Prior to getting married or starting a de facto relationship;
- During a marriage or de facto relationship; after dissolving a marriage or de facto relationship; also referred to as a prenuptial agreement, but the legal word is – financial agreement.
- Before signing a Binding Financial Agreement, all parties must be represented by legal counsel, and the agreement must be prepared in accordance with the specifications stated
In Australia, spousal maintenance is typically taxable. While the paying spouse may claim a tax deduction for the amounts paid, the receiver spouse is required to report it as assessable income. However, tax treatment can change based on unique circumstances, thus in certain situations, it is best to consult a tax professional.
The practice of one spouse continuing to support their ex-partner financially is known as spouse maintenance. Child support and spouse maintenance are not the same thing. Spouse maintenance is paid for your benefit, whereas child support is paid for the benefit of the children.
Learn more: claiming adult child maintenance