News

Cash-strapped divorcees cutting maintenance payments

Release date: 21/10/2008

The credit crunch has prompted a wave of inquiries from cash-strapped divorcees looking to cut maintenance payments, it has emerged.

The impact of months of economic turmoil, rising prices and the spiralling cost of living is forcing parents to review all their monthly outgoings - including all forms of maintenance payments.

Leading collaborative lawyer Katherine Marshall has seen a significant increase in the number of enquiries from separated couples.

She says: "I am getting a large number of calls about this every day and I think it's fair to say it is partly as a result of the credit crunch.

"Separated parents can seek to apply to the courts for a variance on any order made on maintenance payments. There are options available for divorcees and any existing order may be varied if they can show there is a change in circumstances.

"This may be as a result of redundancy, a fall in income, loss of earnings - particularly noticeable if annual salary is based on commission, a performance-related element, or a dip in profits from a personally-owned business.

"Depending on the circumstances, a variation to an original order may be agreed by the courts. But to be able to make a successful application for variance, applicants must be able to prove that their financial circumstances have significantly worsened and they are not just trying it on following a hefty gas bill. The courts will carefully look at the merits of each individual case."

Anyone who is considering applying for a variance of order is urged to get advice first and look at nailing down a clear and sound case before they get to the courts.

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