Inflation bites twice on separated families
As the cost of living crisis hits households across the country, separated families may need to revisit maintenance arrangements agreed at a time when inflation was subdued.
When married couples split spouses owe a duty of financial support to one another. This will often see the higher earning party provide maintenance or aliment in the form of monthly payments to the spouse who requires support to meet their needs.
Typically, both spouses will draw up a schedule of income and outgoings to assess the needs of the receiving party and the resources of the paying party to meet any shortfall. Frequently where children are involved the dual obligations to maintain a spouse and children will be wrapped up in one payment, or perhaps by continuing to meet certain costs of the household where the children mainly reside, such as the mortgage and council tax.
If the arrangement or court order was reached based on costs which have since spiralled it may be possible to seek to vary the level of aliment to be paid by reference to a new schedule of outgoings.
However, if the paying party also has mounting fuel and food costs, but without a comparable increase in their available income, they may argue they do not have the resources to offset the rising costs of living which impacts on both households.
Some long-term maintenance arrangements will include reference to regular review with reference to the Retail Prices Index or Consumer Prices Index. This can shelter the receiving party from inflationary pressures.
Financial support is usually one of the most pressing issues to be agreed when couples separate. Agreements reached in the early days after separation can have important consequences further down the line and early advice on your financial requirements or obligations can be crucial in setting the stage for the longer term arrangements which follow.
If you have any questions about financial support or child maintenance following a separation, please contact our Roger Mackenzie at rlm@wjm.co.uk