Skip to main content

News story

October 11, 2022

Rising living costs can affect your maintenance order

In many cases, the cost of living crisis is likely to affect ongoing maintenance payments. We explore the topic and the solution available.

What is a maintenance order?

The Court can make an order known as a maintenance order whereby one person pays another person periodical payments to support their living costs. Maintenance orders are a legal responsibility usually made following a divorce or separation where the parties are not married but have children. As maintenance orders are Court orders, they must be complied with, and failure to do so could result in penalties against the defaulting party.

The problems

As maintenance orders often cover long periods, they can vary annually to keep pace with inflation, known as index linking. Having a maintenance order which is index-linked usually means that the monthly payments will increase over time in line with inflation. So, when living costs rise, maintenance payments increase so that the receiving party can still pay their outgoings.

Whilst this may be positive for the party receiving the maintenance, you may ask how this will affect the paying party. Many paying parties may find themselves in a situation where living costs have increased, but their wages have not. Despite this, they must pay increased maintenance payments under the court order if it provides for index linking. Increased costs may leave them feeling aggrieved and potentially cause them to fall into financial difficulties.

If the maintenance order is not index-linked, this could cause problems for the receiving party. Maintenance orders are needs-based, i.e., what does the receiving party need to meet their or their children’s outgoings? If living costs increase, it follows that needs will also increase. However, suppose there is no mechanism in the maintenance order for the monthly payments to grow in line with inflation. In that case, the paying party is under no obligation to increase them accordingly. As a result, the receiving party may face financial difficulties in trying to meet the shortfall that will arise from the increased cost of living.

The solution

Luckily, there is a solution to combat rising living costs in both situations. The Court has the power to increase or decrease the payments under a spousal maintenance order. If the circumstances warrant it, the Court can also change the period over which the paying party makes maintenance payments. The Court can also make variations to child maintenance orders during the minority years of the children. Maintenance orders need to be variable as life is unpredictable. It would be unfair for these orders to be rigid and inflexible. Evidence can be put to the Court by either party to support their argument that the maintenance order needs to be varied.

Speak to Pippa Marshall to understand your options and decide whether applying for a variation is your best course of action.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • A spotlight on child arrangements in the UK
    Celebrating National Children’s Day.


    Read more
  • How should an employer respond to a ‘heat of the moment’ resignation?
    Employers should remember that a 'heat of the moment' resignation should be treated differently from those that come in the usual course of business. They are often verbal and unexpected and usually follow a workplace disagreement. To do otherwise ma


    Read more
  • An Introduction to Private Client Law
    Lasting Powers of Attorney


    Read more
  • Understanding financial provisions on divorce
    Divorce can be emotionally challenging, and navigating the financial aspects can add to the challenge.


    Read more
  • Digital divorce: the highs and lows
    According to figures from the Ministry of Justice, digital divorce applications rose by 20% in the year following the introduction of no-fault divorce (2022 to 2023).


    Read more

What they say...

  • Deborah Mendel-Lion, May 2024
    “My house sale was dealt with extremely efficiently and professionally [by Martin Alfreds] with the minimum of stress. All correspondence was handled by return and I was informed of the progression of the sale promptly.” Residential sales

  • Peter W, May 2024
    “Patrick Simpson provided first class support when I experienced redundancy. I couldn’t have asked for more. Demonstrating his superior knowledge and experience and explaining everything to me with crystal clarity. Efficient and timely with a

  • Mr Rose, April 2024
    “The firm acted for me in an employment matter where the issues were as much practical as legal. The advice given was thorough and clear, marrying black letter law to the practicalities. This helped me greatly in achieving a satisfactory outcom

  • Brian Higgins, April 2024
    “Patrick was excellent, responded quickly and gave concise, clear advice. He made the process very straightforward.” Employment

  • J. Cassell, April 2024
    “We were advised by Charlotte Barbaroussis. Her dealings were very professional. She was pleasant easy to deal with and very approachable. Her help during the process of setting up my wife’s and my will made the task a lot easier.”

Read more
Send this to a friend