Skip to main content
CLOSE

Charities

Close

Corporate and Commercial

Close

Employment and Immigration

Close

Environmental, Social, and Corporate Governance

Close

Fraud and Investigations

Close

Individuals

Close

Litigation

Close

Planning and Infrastructure

Close

Public Law

Close

Real Estate

Close

Restructuring and Insolvency

Close

Energy

Close

Entrepreneurs

Close

Private Wealth

Close

Real Estate

Close

Tech and Innovation

Close

Transport

Close

Spousal maintenance is a regular payment made by a former spouse following a divorce. Where spousal maintenance is ordered, it is often the case that there is provision for there to be an automatic review of the amount being paid each year to ensure the spousal maintenance stays in line with inflation. Either the payer or payee will need to calculate the change annually and the payer will then need to implement the change.

Sadly this is something that is often overlooked . If this happens over a number of years this could make a substantial difference to the amount of money the payee actually receives when compared to what they should be receiving. Whilst the onus is on both parties to remember the annual increase, the payee should ensure they diarise each year to check that this has happened as it will ultimately impact on them, and the payer may avoid flagging this where reviews have been missed. This will also avoid needing to take any further steps to secure payment of arrears.

The most common method for the inflationary review is for it to be linked to the performance of the Retail Prices Index (RPI), albeit there are other methods available, such as the Consumer Price Index (CPI).

To calculate the relevant increase in accordance with the RPI, you multiply the current spousal maintenance payment by the RPI figure for the month three months prior to the date of variation. You then divide that sum by the RPI figure for the month fifteen months prior to the date of variation.

By way of example, Jack was ordered to pay spousal maintenance to Jill of £2,000 per month. This was incorporated into a Court Order dated 1 October 2020 with provision for this to be varied annually by reference to RPI.

This means that from 1 October 2021 Jack should be paying Jill an increased level of maintenance, calculated as follows:

It is important to note that a spousal maintenance clause which includes an annual inflationary variation is entirely separate to a formal application made by the payer or payee to vary the spousal maintenance based on changes in their financial circumstances. These inflationary linked variations are automatic and are simply designed to ensure that the amount being paid does not lose its value over time. This is particularly important at the moment with soaring living costs putting a strain on all household budgets.

If you have any questions about calculating an inflationary linked variation of spousal maintenance or about a more general application to vary spousal maintenance then please do not hesitate to contact a member of our highly experienced team who will be able to assist you.

Latest articles

Our Offices

London
One Bartholomew Close
London
EC1A 7BL

Cambridge
20 Station Road
Cambridge
CB1 2JD

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

 

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

  • Lexcel
  • CYBER ESSENTIALS PLUS

 

BDB Pitmans is launching Broadfield soon

______________________________



To read more about our plans, click here.

© BDB Pitmans 2024. One Bartholomew Close, London EC1A 7BL - T +44 (0)345 222 9222

Our Services

Charities chevron
Corporate and Commercial chevron
Employment and Immigration chevron
Environmental, Social, and Corporate Governance chevron
Fraud and Investigations chevron
Individuals chevron
Litigation chevron
Planning and Infrastructure chevron
Public Law chevron
Real Estate chevron
Restructuring and Insolvency chevron

Sectors and Groups

Private Wealth chevron
Transport chevron