What is Spousal Maintenance in Australia? | Eligibility Criteria

Marriages are not just an emotional bond but also an economic bond, so there are always financial settlements to make when a marriage breaks down. If one spouse in a relationship is financially weak and depends on the other to meet their basic needs, the stronger spouse is liable to pay spousal maintenance even after the separation or divorce.

“When marriage was an economic arrangement, infidelity threatened our economic security; today marriage is a romantic arrangement and infidelity threatens our emotional security.”

Esther Perel

We are living in a world where you need money to fulfil even your smallest need; therefore, financial security is the main concern of every person today. Marriage is one of the relationships that create financial dependencies in people. So laws like spousal maintenance are made to protect the financially weak and dependent spouse.

In this blog, I will cover all the points that you must know about spousal maintenance in Australia. Firstly, we will understand the concept of spousal maintenance. Moving on, the eligibility for spousal maintenance will be discussed, along with the amount that one party is liable to pay another.

Let’s dive into the details of the blog to broaden the spectrum of our knowledge.

What is Spousal Maintenance in Australia?

According to the FAMILY LAW ACT 1975 – SECT 74 “(1)  In proceedings with respect to the maintenance of a party to a marriage, the court may make such order as it considers proper for the provision of maintenance in accordance with this Part.”

Spousal maintenance is a specific amount paid by one spouse to the other according to court orders to meet their daily needs.

This amount is decided depending on several factors, like income, assets, expenses, and the source of income of the paying party. A lot of people are unaware of the law that says they are entitled to or liable to pay spousal maintenance to their spouse in Australia after divorce or separation.

What is Spousal Maintenance in a De facto Relationship?

Spousal maintenance in a de facto relationship refers to the amount a de facto partner pays to the other after their separation.

This amount is mandatory to pay to help the weaker partner sustain their day-to-day lives. The court decides the amount that one de facto partner pays to the other only if the de facto relationship meets the specific criteria of the jurisdiction.

What is the Eligibility Criteria for Spousal Maintenance?

There is a high possibility that you mix spousal maintenance with property settlement. It is necessary to make it clear that spousal maintenance is different from property settlement after divorce. You will have no right to obtain spousal maintenance in Australia if you are unable to justify certain criteria. You will get the spousal maintenance only when you satisfy the eligibility criteria.

To make sure that you are the right person to get the spousal maintenance, the court will judge you on several grounds, including:

• The maintenance and well-being of the children under the age of 18.
• The age and health condition of both parties.
• The capacity to maintain employment.
• The property, income, and financial resources of each of the spouses.
• The commitments of each of the spouses to financially support themselves and other persons.
• The eligibility of the parties for an allowance, pension, or benefit;
• A reasonable living standard in all circumstances.
• Whether payment would increase with the earning capacity of the other person or not.
• The rights of any creditors.
• Any contribution to the earning capacity, income, property, and financial resources of the other partner.
• The duration and impact of the marriage.
• The nature of living under one roof with any other person.
• The terms of any property settlement after separation or divorce.
• The child support that is being paid or payable.
• The terms and conditions of any binding financial agreement (BFA).
• Any fact or circumstance that should be taken into account, in the opinion of the court.

What is the Amount of Spousal Maintenance?

The amount of spousal maintenance in Australia is not fixed. It varies from case to case, depending on both parties. Spousal maintenance is calculated while keeping in view the capacity of a partner to pay and the eligibility of the other partner to be entitled to spousal maintenance.

Let’s look into the details of how spousal maintenance is calculated in Australia.

How Spousal Maintenance is Calculated?

There are multiple factors to consider when calculating spousal maintenance in Australia. A lot of people are misled by the online spousal support calculators, but keep in mind that none of them is reliable. Following are the factors that you can consider while calculating the spousal maintenance.

• Calculate your taxable income.
• Figure out your child support payable, if you have any.
• Get help from your accountant to confirm your income tax.
• Calculate your reasonable expenses.
• Prepare a draft of your expenses over the next 6 to 12 months and make a budget.
• Make a budget for the other party as well.

Once you have all this information, consult with an experienced family lawyer. Aussie Legal Partners have a team of professional lawyers who are experts in dealing with cases of spousal maintenance and matters related to family law. The experienced lawyers will guide you on whether you are liable to pay the spousal maintenance and, if so, how much you should pay.

Closing Insights

Spousal maintenance is a matter that needs to be dealt with with keen interest and care, whether you are on the paying side or the receiving side. The paying party must ensure that the other partner is truly eligible for the maintenance, as it will be deducted from their hard-earned money. On the other hand, the person receiving spousal maintenance ensures that they are receiving the particular amount to smoothly maintain a balanced life.

I have covered the main factors involved in most of the cases of spousal maintenance. You must have read them all by now. To get the results according to your wishes, you must follow the guidelines provided to you in this blog. If you are having trouble complying with the conditions, you must seek help from a family lawyer.

Aussie Legal Partners has the most skilled family lawyers in Parramatta Sydney, to handle your cases in family court. Our family lawyers will represent you in the family court and ensure that you get results that align with your interests. Moreover, you can discuss your case with our expert family lawyers, as we offer free initial consultations to our valuable clients. So don’t hesitate and book your consultation now.

FAQs

How do I apply for spousal maintenance?

To initiate the process of spousal maintenance in Australia, you have to submit an application to the Federal Circuit Court or Family Court along with details of your financial statements, income, assets, expenses, and liabilities.

Is spousal maintenance taxable in Australia?

Spousal maintenance is often taxed in Australia. The receiving spouse must include it as assessable income, while the sending spouse may claim a tax deduction for the payments.

Do I need to go to court to get spousal maintenance?

It is not always mandatory to go to court to solve matters of spousal maintenance. Couples are encouraged to sort things out with mutual understanding and sign a mutual agreement, but if they fail to do so, it is important to head to court.