Mills v Mills – Spousal Maintenance Isn't A Bail Out

On 18 July 2018 the Supreme Court handed down judgment in the case of Mills v Mills. Very few Family law financial cases get to the Supreme Court and Family lawyers were hoping for significant guidance in the difficult area of applications to vary spousal maintenance orders.

Graham and Maria Mills divorced in 2002 after a 15 year marriage. They were a family who kept their heads above water financially, but could not be described as wealthy. They settled their claims by agreement and a consent order was made with Maria Mills receiving the lion's share of the capital as she was going to be the primary carer of their son. She received £230,000 which was over 80% of the capital and a spousal maintenance order in her favour of £13,200. The maintenance order was open-ended and would come to an end on her remarriage, the death of either of them or a further order of the court.

Maintenance Orders

Open-ended maintenance orders were the norm in 2002. The current judicial approach leans towards term maintenance orders and if the case had been negotiated today a maintenance order coming to an end when their son finished his education would be far more likely.

Maria Mills was working part-time as a beauty therapist and Graham Mills was a surveyor with his own small business.

It was expected that with her lump sum, Maria Mills would purchase a home for herself and their son. During the 2002 proceedings Graham Mills had argued that this would enable her to buy a property mortgage free, whereas she argued for a housing requirement of £350,000. However, she was free to do whatever she wished with the money when she received it and she bought a property for £345,000.

Over the next 7 years Maria Mills then bought and sold a series of properties, each time increasing the mortgage. From the court judgment it seems likely that on each purchase she released capital which she then used to supplement her income and the spousal maintenance she was receiving and living beyond her means. By 2009 she had to move into rented accommodation.

Mills v Mills initial judgement

In 2015 Maria Mills issued an application to increase the maintenance payments as combined with her own income, she was no longer able to afford to support herself. Graham Mills applied to terminate the maintenance payments on payment of a capital sum of £26,000, or alternatively to fix the term of the maintenance payments and/or downward vary what he was paying. By now their son was an adult, Graham...