NEWS ARCHIVE How the changes to bankers’ pay packages could affect divorce settlements. Not just for the super-rich: pre nuptial and post nuptial agreements. Financial Times Wealth Questions: what happens if a spouse files for bankruptcy during divorce? Bankruptcy during divorce: what you can learn from Scot and Michelle Young. International Child Abduction: What Rights Do Parents Have?
			« 1 2 3 4 5 6 »

Renegotiating Divorce Settlements

Periodical payments (or maintenance payments) are agreed at the point of a couple’s divorce and often apply when one party’s earnings reasonably outweigh the other’s. A example would be a husband being ordered to pay his wife who does not work and looks after the children, maintenance payments ‘on a joint lives basis’. This means the payments would continue while both parties are alive. However, as time moves on, changes in circumstances can mean that the payment order can be revised or ended.

Remarrying: If the spouse receiving maintenance payments remarries, the Payment Order would end. However, this can often discourage couples to remarry, choosing to cohabit instead.

Cohabiting with a new partner: Cohabiting with a new partner does not mean an automatic change to the Payment Order. A decision to change or cease payments will be based on the spouse’s need for maintenance considering their new circumstances. If, for example, the spouse moved into the new partner’s home, there may then be a strong argument for the maintenance payments to be reduced.

Change in financial circumstances: Changes to each of the party’s financial circumstances do not necessarily affect the Payment Order in the same way. If the spouse that is making payments begins to earn significantly more money, they may not need to make higher maintenance payments if the original order was considered sufficient to meet their ex spouse’s needs. However, if the spouse receiving payments begins to earn their own money, there may be a strong argument to cease the order on the grounds that the spouse is now financially meeting their own needs.

Decisions made with regard to Payment Orders clearly have long term implications for both parties. It is therefore important that the maintenance agreement is argued by an experienced solicitor. With forethought, the argument can map out which life changes would justify an alteration to the Payment Order in the future. Agreeing these factors up front could equate to significant cost benefits over the long term.

If you would like to discuss this article with Brookman Solicitors, please contact us.