Spousal Maintenance In Australia

Spousal maintenance is one of the most contentious issues during divorce and separation. Australian law awards spousal maintenance to parties that cannot sufficiently provide for themselves after a divorce or separation. Below is a guide discussing spousal maintenance in Australia. 

Who Qualifies For Spousal Maintenance? 

You typically qualify for spousal maintenance if you cannot meet your financial needs after separating or divorcing your spouse or de-facto partner. You can make a spousal maintenance claim based on one or several of the following circumstances: 

  • You are responsible for taking care of children below 18 years of age.
  • Your current income does not allow you to maintain a reasonable living standard.
  • There is a significant discrepancy between your income and that of your spouse.
  • You have a disability or medical condition that prevents you from being in active employment.   

Applying For Spousal Maintenance

You will need the services of an experienced family lawyer when applying for spousal maintenance. In some cases, couples can determine spousal maintenance when drafting a financial agreement. That is a cost-effective, fast and convenient method when compared with going to court.  

Calculating spousal maintenance

Several factors will come into play when calculating spousal maintenance. They include: 

  • The current incomes of the benefactor and the recipient.
  • The living standard of the parties during the relationship.
  • The current financial commitments of each party.
  • The financial contributions of the beneficiary. For example, did he or she take an active role in managing businesses or assets? A stay-at-home parent could have allowed their partner to concentrate on work or business because they did not have to take care of the kids. As such, this is considered a financial contribution.
  • The probability that the recipient will get employed or earn some income in the foreseeable future. 

Terminating Spousal Maintenance

Spousal maintenance is not typically a lifetime reward. The benefactor can seek a court order to terminate the payments if the recipient gets married or moves in with another partner. The order could also be removed if the benefactor can no longer afford the maintenance fees (for example, if they lost their job) or if the recipient has a financial windfall. 

Spousal maintenance payments can be made as a lump sum or as small amounts over a specified period. Alternatively, the benefactor could opt to trade in some assets to act as spousal maintenance. He or she could also meet specific expenses. For example, he or she could pay the recipient's accommodation costs, loans, or insurance costs. 

Contact a family law firm to learn more.

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