Divorce or relationship breakdown can bring about significant changes in the financial circumstances of both parties involved. In Australia, the concept of spousal maintenance exists to address the financial disparities that may arise following the end of a marriage or de facto relationship.
Spousal maintenance refers to the financial support provided by one spouse to the other after the breakdown of a marriage or de facto relationship. A party may be liable to maintain the other party to the extent that they are reasonably able to do so if the other party is unable to support his or herself adequately by reason of having the care and control of a child of the relationship who has not attainted the aged of 18 years, due to age or physical or mental incapacity for appropriate gainful employment or for any other adequate reason.
An application for spousal maintenance must be made with 12 months of the divorce becoming final or within two years of the breakdown of a de facto relationship unless special circumstances exist.
In determining eligibility for spousal support the Court will take into consideration factors such as:
- Income and earning capacity of each party.
- Age and health of the parties.
- Care arrangements for dependent children.
- Financial resources and assets.
- Standard of living during the relationship.
- Financial contributions made by each party.
The court may make different types of spousal maintenance orders based on the circumstances of the case:
- Interim Maintenance: These are temporary orders made during property settlement proceedings to provide immediate financial support until a final determination is reached.
- Periodic Maintenance: This involves regular payments made for a specified period or until further orders are made.
- Lump Sum Maintenance: In some cases, the court may order a one-time lump sum payment as spousal maintenance.
An order for spousal maintenance will cease to have effect upon the death of a party, the death of the person liable to make a payment under the order and upon the re-marriage of the party who is receiving maintenance.
Spousal Maintenance Agreements can be negotiated and settled between the parties without court intervention. It is crucial that you seek legal advice to understand your rights and responsibilities and to navigate the complex legal framework of a Spousal Maintenance Agreement. If an agreement cannot be reached in the first instance mediation is encouraged to avoid the time, cost and emotional stress associated with court proceedings.