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The recent cases of Parlour -v- Parlour and McFarlane -v-
McFarlane have been examples of where the courts have ordered
substantial maintenance payments to ex-wives on divorce. The first
case involved the Premiership footballer Ray Parlour whose ex-wife
received spousal maintenance of £444,000 per annum for a four- year
period. The second case of McFarlane received much media coverage.
This resulted in Mrs McFarlane receiving spousal maintenance from
her ex-husband of £250,000 per annum for the parties’ joint lives.
Mrs McFarlane had been married to her husband for 16 years and gave
up a high-flying career as a solicitor in London to care for the
parties’ three children.
On divorce, or the dissolution of a civil partnership, the
courts have the power to order one party, usually the husband, to
pay spousal maintenance to the other for either a set period, for
example, until the youngest child reaches the age of 18 or ceases
secondary education, or for the parties’ joint lives. The court
also has the power to order nominal spousal maintenance to act as a
form of protection or insurance enabling a wife to apply to the
court to increase the amount to a substantive figure should there
be a significant change in circumstances.
But what happens if, typically, a wife receives an order for
spousal maintenance and then her ex-husband dies or cannot pay
because he has been made redundant or become seriously ill etc?
There are available on the insurance market Family Income Benefit
Maintenance Protection Policies. The Global Investor website
defines these policies as “a type of term assurance in which,
following the death of the life assured, instalments, rather than a
lump sum, are paid to the beneficiary for the remainder of the
policy term. If the life assured lives to the end of the term, no
benefit is payable”.
Whilst not all insurance companies offer Family Income Benefit
Policies to ex-spouses in receipt of maintenance, there are a
number who do. Some providers may also include critical illness
cover within the policy as an option, if required. Anyone in
receipt of spousal maintenance who wishes to find out more about
such policies should contact an independent financial adviser. Such
policies may provide peace of mind to, for example, an elderly
ex-wife who is dependent upon the spousal maintenance she receives
from her frail and elderly ex-husband. The disadvantages of such
policies are that medical evidence will be required and possibly a
medical examination for those in poor health and they have no
cash-in value at any time.
Sarah
Wright is a solicitor at Blake Lapthorn in Winchester
specialising in Family law and can be contacted on 01962
844440.
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