What is it?It is periodical payments (usually
payable monthly) for a limited period of time while the overall finances
are resolved between the parties. Once the finances are resolved MPS then
ends and either no order is made for periodical payments due to the capital
division, or spousal maintenance is ordered.
Who can
apply?The lower earning party to the marriage.
How do you apply?By way of a
Form A. The
Form A can be filed
on the same day as the divorce petition, but there must be a divorce
petition filed to apply. If you haven’t filed for ancillary relief you may
as well apply for that at the same time to save a further application
fee.
You will get a court date for the MPS hearing fairly
quickly. Both parties have to file a sworn statement of their income and
out goings so the court can assess if MPS should be paid.
What is it for?To meet the short term financial
needs of the applicant while the wider finances are resolved.
How does the court decide to make an order?It simply looks at the income of the receiver and determines if
there is a need. If there is, MPS is likely to be paid as a priority over
any other outgoings of the payer, especially if there are children and
there are housing costs to be paid. It is the rare case when it is not
ordered, and only usually when the potential payer is on a low income. The
receiver will be expected to have applied for any benefits they are
entitled to if not working, and for tax credits if they are.
Should there be an order at all?In
many cases yes, and the court will err on the side of caution of making an
order rather than not, as it is a time limited order in any event. The
court is very liberal on MPS applications, especially when there are
children and the housing costs of the parent with care needs to be met.
How much?As with spousal maintenance
there is no formula. The basic calculation is the receiver’s outgoings
minus any income he or she receives. If there is a gap there is a need,
and that forms the baseline figure. Then one looks to the
resources of the payer, and if there is an ability to pay that
baseline figure. If so, it is awarded. However, that is not the
end of the calculation. One then looks at the lifestyle the parties
enjoyed during the marriage. If the payer can afford to pay more so that
the receiver can continue to enjoy a similar level of lifestyle, then that
will be so. The court adopts a very liberal approach to MPS, particularly
as it does not have to balance the calculation against the wider capital
division as that comes later.
How long for?The usual duration is until further order. In effect it is usually
until the financial matters have reached a conclusion, when the MPS will
become spousal maintenance or be dismissed.
Are there
any tax implications?Very simply, no. The receiver
does not pay tax on spousal maintenance received. Until 2000, tax relief
was available to the payer, however, this has now been abolished.
Variation/AppealYou can apply to vary an
order for MPS, however, more often than not it is more beneficial to
concentrate on settling the overall finances than varying an order which is
effectively time limited.
Again, you can apply to appeal an
order for MPS, however, given the time it takes and the costs involved, it
is again better to focus on resolving the overall finances than appealing a
time limited order.
MPS and benefitsInterim maintenance does not affect working tax credit. It does however
affect income support, housing benefit and council tax benefit, so one has
to consider the wider implications of maintenance on the whole income of
the receiver.
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