My Income Is Decreasing ' Can I Reduce My Spousal Or Child Maintenance Commitments?

• Published date: 11 February 2021
• Subject Matter: Litigation, Mediation & Arbitration, Family and Matrimonial, Family Law, Arbitration & Dispute Resolution, Divorce
• Law Firm: Taylor Vinters
• Author: Ms Alexandra Gooden

If you've been hit hard by economic challenges caused by the coronavirus, you may want to review your divorce settlement following a change in your financial circumstances. What are your options?

Financial court orders made on divorce are intended to be final. There are very limited circumstances in which a court will consider "unpicking" an order after it has been made. Whether or not COVID-related financial changes would constitute grounds to challenge capital orders made on divorce will depend on the specific circumstances of the case, and it is advisable to get an early steer from your legal advisor before taking steps.

However, the one exception to that general principle is maintenance - that is, ongoing financial payments to an ex-spouse or for the benefit of children from a previous relationship.

The law recognises that it would be unfair on the payer of maintenance - and the recipient - to "fix" these payments, in case circumstances change (for instance, the payer loses their job or retires, or the recipient comes into significant wealth).

Reducing spousal maintenance payments

If your income has reduced significantly as a result of the pandemic or you are coming up to retirement, and can no longer afford to pay maintenance to your former spouse, you have various options. Ideally you and your ex-spouse would agree on any necessary reduction in payments, and document that agreement in writing. However, if you can't agree, you can instruct solicitors to help you reach a mutually satisfactory solution; use a form of Alternative Dispute Resolution such as mediation or arbitration; or ask the court to review the maintenance payments and settle the issue for you. Court proceedings are often a last resort and, from a costs...