Financial Relief - Case Study Example

FINANCIAL RELIEF Type of the Paper January 22, 1558 words of the school Introduction Megan and Hugh seem to disagree on theissue of whether Megan should get spousal maintenance. This is because while Megan believes that she should get spousal support from Hugh, Hugh on the other hand is not willing to pay spousal support for Megan, saying that she should look for a job and support herself. However, Megan has a right to claim for financial relief. Due to the fact that they can’t agree on the matter, there is need for the court to step in and decide on the amount of spousal support based on conditions established by the law. McIntyre and Sussman point out that modern purposes for spousal support are “to prevent a spouse from becoming dependent on a state, to ease the transition from married to single status, to serve as a supplement to a property settlement, and to compensate a spouse for household production during the marriage.”1 To determine whether Megan qualifies for spousal support, the court will need to consider a number of factors. These factors include the ages of Megan and Hugh and the duration of their marriage, contributions made by Megan through her income, looking after their home and children, the family’s needs, assets and earning capabilities of Hugh and Megan, the age, mental, physical and emotional well being of both Megan and Hugh, their standard of living before separation, and whether being the custodian of the children will limit Megan from earning a substantial income. Hugh’s adultery, which is said to have begun since their first born was born, will not be considered in determining whether to award spousal maintenance to Megan. According to Rossini, alimony “is separate and apart from monies paid for financially dependent children as child support. In some jurisdictions under certain conditions, alimony may be taxable income for the recipient (and deductible for the payor).” 2 It is possible for the court to assess Megan’s needs and decide on whether to award her compensatory maintenance to enable her to save and ease her transition on the fact that had she not gotten married and given up her well paying job to look after the kids, her career just like Hugh’s would have progressed. The Ages of Megan and Hugh and the Duration of their Marriage Determination of Megan’s eligibility for spousal maintenance is a vital consideration by the court. The ages of Megan and Hugh are important in determining how easily each of them can make a fresh start, which has a profound impact on their resources and expenditure in future. The length of their marriage is also important in determining how they ought to share assets and Hugh’s income. In the United Kingdom, a marriage of four years is considered as a short one, while a marriage of twenty five years is considered as a long one.3 Megan and Hugh have been married for more than four years making their marriage a long one. They are both however not too old to remarry making it easy for both of them to start their married lives afresh with other spouses in future. This is especially true from the fact that their first born is fifteen years old and their youngest son is below ten years of age. The fact that Megan and Hugh have been married for a considerable length of time makes Megan eligible for spousal support. Contributions Made by Megan through Her Income, Looking After Their Home, and Children Financial contributions made by a spouse as well as other contributions in the home are a necessary consideration in determination for spousal maintenance. In Megan’s case, she has definitely made financial contributions in the home, especially at the time when she had a well paying job. Although it is not clear whether she contributed in buying the property at Hertford, she has made financial contributions in the joint building society savings. She also left a well paying job to be the primary homemaker and take care of the children. According to Boele-Woelki et al., “by abstaining from gainful employment-in whole or in part- and becoming the primary homemaker, a spouse may have contributed to the other spouse’s career and income.”4 England and Wales are among the jurisdictions that take this division of marital duties into account, while determining eligibility for spousal maintenance. Despite being a less determinant factor in spousal maintenance, the financial and non-financial contributions made by Megan in maintaining the family’s well-being are a crucial point for consideration. Megan’s position as the primary homemaker after leaving her well paying job definitely contributed to Hugh’s career progress. This can be seen from the fact that Megan’s main reason for not returning to paid work was because Hugh was working long hours and this consequently led to progress in his career. Given that Megan has made great financial and even greater non-financial contributions in her family, she is eligible for financial maintenance from Hugh. The Family’s Assets and Megan’s Financial Needs and Capabilities Although Hugh agrees to the sale of their Hertford home and joint assets, he is unwilling to share his pension and other investments with Megan. However, his pension and other investments were made possible due to Megan’s sacrifice to leave her job, as Hugh concentrated on his and managed to progress. Hugh is now a junior partner in a large firm of accountants and seems to have a number of private assets and investments, and a stable income. The duration of their marriage is also long raising the need for equal distribution of their assets. The court therefore needs to consider whether and how much of Hugh’s assets should be granted to Megan. Although Hugh is willing to pay for the maintenance of the children as they live with Megan, he refuses to offer support to Megan. However, Megan has no source of income since she has been jobless since the birth of their second child, Aled. Megan has other financial needs apart from basic needs and modest comfort. On top of that, she left her job due to family circumstances while Hugh continued to progress in his career. Megan’s financial needs need to be considered by the court given that the only property that she privately owns is a cottage in a remote part of Wales, which is only worth about a hundred thousand pounds. Given this, Megan is not financially able and she has no idea if she will be getting a job anytime soon, since she has been a housewife for thirteen years and her skills might not be relevant in the current job market. Standard of Living while Married Despite the fact that it is quite difficult to continue standards of living that spouses are accustomed to while married, courts make attempts to maintain these standards even after separations. Megan is accustomed to a certain standard of living, which may be affected due to the fact that she is unemployed and Hugh is unwilling to financially support her. The court would therefore need to consider the standard of living that Megan is accustomed to, in consideration for her maintenance. Hugh and Megan’s Mental, Physical, and Emotional Well Being Megan and Hugh are physically, mentally, and emotionally stable individuals. Megan is only completely dependent on Hugh financially and not due to any disability However the court will need to prove their physical, mental, and emotional stability before settling their alimony matters. In the case of any special need by one of the spouses, Begley and Canellos point out that, “a self-settled special need trust is funded with assets of the beneficiary with special needs. This type of trust is usually used in connection with a personal injury settlement, an inheritance, equitable distribution or alimony.”5 Health issues on the part of Hugh could affect his ability to pay alimony, but the fact that his marriage to Megan has been long would nullify the issue. However, any disabilities or health problems on the part of both spouses are not mentioned. Megan’s State of Being the Custodian and Her Ability to Earn Substantial Income Despite having a few disagreements on a number of issues regarding their separation, Megan and Hugh have no disputes over Megan living with the children. Megan on the other hand has no problems with being the custodian of their children, but she believes she is entitled to personal maintenance from Hugh. Megan’s inability to work and earn a substantial income began after the birth of their second child. Given this, she might be unable to work to her full potential due to the fact that she will still have to make arrangements regarding the children, and how to take care of them. This is because caring for the children may limit Megan from working full time. There is therefore need for the court to consider Megan’s contributions into the unforeseeable future, as the custodian for the children. List of References Begley, Jr. and Canellos, Angela E. Special Needs Trusts Handbook, Aspen Publishers, London, 2009. Boele-Woelki et al. Principles of European Family Law Regarding Divorce and Maintenance between Former Spouses, Hart Publishing, Oxford, 2004. Financial Orders on Divorce-The Legal Background, in Manches, n.d., viewed on 22 January 2013, < http://www.manches.com/Content/Resources/files/Divorce%20-%20Financial%20orders%20on%20divorce%20-%20the%20legal%20background.pdf>. McIntyre, Lisa J. and Sussman, Marvin B. Families and Law. Haworth Press, Philadelphia, 1995. Rossini, Christine. English as a Legal Language. Kluwer Law International Ltd, London, 1998. Read More