The financial impact of the COVID-19 pandemic is wide-reaching and those making spousal maintenance payments may be feeling the pinch more than others.
The financial circumstances of those hit by being furloughed or from a downturn in business, may mean that maintaining the same level of spousal payments may risk severe financial difficulty. There are steps that can be taken to help.
Almost every businesses will have its profits hit, and those in the hospitality and entertainment sectors will be hit the hardest. If those businesses suffer from liquidity issues (cash flow), pay to directors and senior staff may be delayed.
“Some businesses may struggle to survive potentially leaving a hole in the pockets of many, making current maintenance arrangements impossible to meet.”Jonty Gordon, Director of Amgen Law
The courts will consider applications to vary the level of payments, such as decreasing them, where there has been a significant change in circumstances.
Those who have suffered financially should review their maintenance payments and, if the level unrealistic to maintain, seek advice on getting it lowered. This would also apply to any valuations that were obtained prior to the current pandemic to ensure they remain valid, as property values will likely fall.
If the arrangements are unrealistic, we urge you to contact us to obtain specific advice with a view to making an application to vary downwards any payments due to a change of circumstances.
Do you need to review your spousal maintenance payments or valuation offers? If you do, or are unsure whether you do, call us on 0333 2400 944 for a free 15 minute consultation or use the contact form below.
Importantly, Amgen Law has provided this Insights article for information only and nothing in it should be constituted as legal advice. However, if you would like to discuss any of these issues further about a legal matter that is affecting you, please get in touch with us directly using the form below.