Woman Denied Spousal Maintenance From Multi-Millionaire Ex-Husband

Spousal maintenance can be a complex financial arrangement. Following a divorce, it is the money paid by either the husband or wife to their former partner to provide them with financial security. Determining whether the spouse requires payment, the amount to be paid and the length of time it should be paid for can all be difficult to calculate.

Appropriate maintenance levels can vary significantly from case to case, with financial commitments, such as child maintenance obligations, being taken into account in relation to the parties’ available resources. A number of problems can arise in settling this kind of agreement because of the vast range of factors that can come into play, including the emotions of both parties. A number of circumstantial changes, such as the recipient’s remarriage or death of either the recipient or payer, can impact the maintenance agreement. If the recipient’s financial situation improves, this will also result in the maintenance being terminated. This post looks at a case that falls into this latter category, highlighting the range of complexities that affect spousal-maintenance. It was recently taken to the High Court.

Former wife of a multi-millionaire, who remains anonymous, has had her bid for spousal maintenance rejected at the High Court. She demanded that her former husband - who had net assets of $21 million - pay her $98,800 a year for holidays, $30,000 a year for clothing and shoes, and a further $30,000 a year for cleaners after their split. The mother of two, in her 40s, will receive nothing from her ex-husband after the High Court judge ruled that she could sufficiently support herself.

Financial “Wish” in Late Father’s Will

Initially it was ruled that the woman would receive an interim payment of $10,833 a month from her former husband until the court made its final decision. However, on Wednesday it was ruled that she does not qualify for spousal maintenance after it was found that her father’s Will contained a “wish” that would see her financially supported by the family’s group of businesses. The Will stated, although never formally listed in her inheritance, that she should receive a total of $150,000 a year from the businesses, and if divorced, a $16.5 million lump sum. In court evidence, the group of family businesses was listed among the top 100 private companies in Business Review Weekly’s annual table.

The woman argued that she had never received any payment from the business of her late father. In agreement with the Full Family Court, the High Court ruled that there was no evidence to suggest, or reason to believe, that the current owners of the businesses would not have abided by her father’s wishes. The mother of two had already received two luxury cars from the group of businesses, argued in court to be proof of their good relationship.

Four of the High Court judges found issue with the fact that the woman had chosen to hide the information contained in her late father’s Will. She was aware of the risk of the court finding evidence of her $150,000 annual payment, but decided to keep the information to herself. One judge stated: “The fair inference is that she chose to run that risk, hoping that it would not eventuate and conscious that such evidence relevant to that finding as she might adduce would not assist her case.”

Justice Michelle Gordon, however, disagreed, arguing that despite the fact that the business owners had given her the gifts of the cars in the past, this did not prove that they had a “good relationship” now. She stated that the wife had requested a copy of her father’s Will, which had been rejected. According to Justice Gordon, only now had the woman learnt of this agreement, during the proceedings against her ex-husband, and more than four years after the death of her father.

How Spousal Maintenance is Calculated

There is no set formula to calculate how much spousal maintenance you should receive after a divorce. However, there are some basic points that make it easier to determine:

• Evidence must show that decisions made during the marriage have generated the future needs of the claimant, i.e. presence of children
• If the needs are not causally-connected to the marriage, the award should be aimed at easing hardship
• The court must consider a termination of spousal maintenance with a transition to independence as soon as reasonably possible – a degree of hardship in making this transition is acceptable
• The marital standard of living is relevant in determining spousal maintenance, but not conclusive
• The task of the judge is not simply to examine the individual items of the claimant’s income, but to take a wider view and ensure that it represents a fair portion of the payer’s available income
• Upon application to extent a term order, a thorough examination should be carried out to ensure that the original order was definitely unable to assist the recipient towards eventual independence
• In the case of a decision between an extendable and a non-extendable term, the decision should be made in favour of the financially weaker party

Contact Us Today

At Szabo & Associates, our solicitors can offer expert advice on a wide range of legal matters. We understand how difficult a divorce can be and offer a personal and professional service to suit your needs. Please contact our Family Law Associate today on (02) 9281-5088, or fill in the contact form.