The cost of living crisis continues to place many families’ finances under significant strain. This strain is often most keenly felt in the finances of separated families. Individuals who are required as part of their divorce settlement to pay spousal maintenance may be struggling to meet those obligations on top of rising bills and increased mortgage payments. Many spousal maintenance orders are also index linked which means that they should be varied on an annual basis in line with inflation. It is easy to see how any significant increase in monthly maintenance payments can easily become unaffordable if an individual’s salary has not risen at the same level.
If you find yourself in this situation what can you do?
First, try to see if you can agree a reduction or an uplift that is affordable for you in the longer term, directly with your former spouse. You will need to provide evidence of your income to prove that you have not received a pay increase in line with inflation and you should also provide full information relating to your monthly expenditure to show that the currents payments and any annual increase is unaffordable. It is important that you do not stop any existing payments otherwise you could find yourself in breach of the court order and steps may be taken to enforce the order. It is best if you continue paying what you can, rather than stopping the payments altogether. If you are able to reach agreement with your former spouse, this should be recorded in an order and sent to the court to be approved. A family solicitor can help you with this.
What if agreement is hard to reach?
If the thought of direct conversations with your former spouse seems impossible then you might want to consider some alternatives, such as using the mediation process. Mediation is a voluntary process where you will be assisted by an impartial mediator who will try to promote dialogue and help you and your former spouse reach agreement. Alternatively, your family solicitor might be able to help you reach an agreement using the collaborative process. This is where you and your former spouse, together with your respective solicitors, will meet and discuss matters round the table, exploring solutions together.
Can you apply to the court?
If this is unsuccessful, the next step to consider is making an application to the court to vary the maintenance payments downwards. An order can be varied if there has been a significant change in circumstances since the making of the original order. The court is unlikely to order the paying party to pay maintenance at a level that they cannot afford and the court will consider all the circumstances of the case. The court can order the payments to be reduced, stopped or order the payment of a lump sum. Another option to consider is arbitration where both parties choose an arbitrator to make a decision, this can be quicker and more cost effective than court proceedings.
The outcome of court applications can be uncertain and costs are likely to outweigh the benefits. It is important to take early legal advice so you know what information you need to present and how these applications are dealt with.
To discuss this, or any other related matter with our experienced Family team, please call us, start a live chat or email us at info@hartbrown.co.uk.
*This is not legal advice; it is intended to provide information of general interest about current legal issues.
