Global maintenance is a way for the court to get around the fact that the court cannot usually make a child maintenance order because this legal power is reserved to the Child Maintenance Service (CMS). For this reason, global maintenance has been regarded as controversial, nevertheless, the court has endorsed its use. This article looks at global maintenance orders: what it is, when it applies, and to whom, the pros and cons, and if this type of order be enforced.
Global maintenance is a way for the court to get around the fact that the court cannot usually make a child maintenance order because this legal power is reserved to the Child Maintenance Service (CMS). For this reason, global maintenance has been regarded as controversial, nevertheless, the court has endorsed its use. This article looks at global maintenance orders: what it is, when it applies, and to whom, the pros and cons, and if this type of order be enforced.
If you have a family law issue and you require legal advice to understand your options, contact specialist family law solicitor Joanne Major. Joanne is the founder of her specialist family law firm and has spent her 25-year legal career specialising in family and matrimonial cases.
How did global maintenance orders come about?
It was created by District Judge Segal, and as a result is often referred to as a “Segal Order”, as a short-term judicial workaround to the problem of the CMS having sole jurisdiction to make a child maintenance assessment, but not doing so at the time of the divorce settlement.
The court can make a global maintenance order if there is a basis for spousal maintenance. The order works by deducting any future child maintenance from the amount ordered by the court. The financially stronger party pays the amount due according to CMS rules, plus the difference between that sum and the global maintenance amount.
A global maintenance order can be beneficial because it:
- Streamlines payments into one amount
- Is a useful tool to enable the court to order periodical payments to cover both spousal and child maintenance until a full assessment is made by the CMS
- Provides clarity for both parties
- Can be reviewed. For example, if a child’s age causes child maintenance to end
When does a global maintenance order apply and to whom?
This type of order is typically issued in complex financial cases and generally applies when there is a significant financial disparity between spouses post-separation. In such cases, the economically weaker spouse may need financial assistance to meet their needs, which can include housing, living expenses, and costs associated with raising children.
How long does it last and can it be enforced?
A global maintenance order typically lasts for a period determined by the court based on the needs of the recipient spouse and the specifics of the case. The duration of an order can vary: it may be temporary, lasting until the recipient is deemed able to support themselves financially, or it may be ongoing and long-term.
They are designed with flexibility in mind, allowing them to be varied if circumstances change. Either party can apply to the court to vary (increase, decrease, or terminate) the order if there is a substantial change in financial or personal circumstances. For example, a variation might be sought if the paying party experiences a significant income reduction, if the recipient becomes self-sufficient, or if the needs of dependent children change.
What are the pros and cons of a global maintenance order?
Pros:
- By combining spousal and child support into a single payment, financial arrangements are streamlined, reducing complexity and potential for disputes over separate payments.
- Provides holistic support, covering a range of expenses such as housing, childcare, and general living costs. This is especially helpful if one spouse has primary caregiving responsibilities and limited earning potential.
- They can be varied if either party’s circumstances change significantly, offering adaptability to changes in income, employment, or living situations. This ensures fairness over time as needs evolve.
- For spouses who cannot become financially independent due to age, health, or career sacrifices made for family, it can offer enduring security.
Cons:
- The recipient may become dependent on this ongoing support, potentially disincentivising efforts toward financial independence and self-sufficiency.
- The paying spouse might face a long-term financial burden, especially if the order lasts indefinitely. This can impact their ability to rebuild financially or pursue other personal goals.
- While flexibility is beneficial, frequent applications to vary the order can lead to ongoing legal disputes, additional costs, and stress for both parties.
- If the order is indefinite, the paying party may face uncertainty about how long they’ll need to continue payments, which can complicate future financial planning and stability.
Does a global maintenance order contravene child support laws?
In reality, few cases have actually considered how such orders would work in practice and there are some concerns that they contravene the Child Support Act 1991. In 2016, a groundbreaking case dealt with this issue which provided the wife with global maintenance of £39,000 per year to be paid by way of periodical payments “for the benefit of and the children of the family”. The husband appealed to the High Court which considered three issues.
1. Did the judge have jurisdiction to make the global maintenance order?
There are only certain circumstances where the court can make child maintenance orders. Although the judge accepted in the previous hearing he had no jurisdiction to make an order for periodical payments directly for the benefit of the children, he made it anyway by concluding it was “appropriate” to include an element “referable to child maintenance”. This ground of appeal was rejected because the judge had followed the “well-known precedent” set by District Judge Segal by incorporating some of the costs of supporting the children into a spousal maintenance order as part of a global order. In addition, it was made clear that the order did not restrict any child support assessments being made by the CMS in the future.
2. Were the periodical payments fair?
The husband argued that the periodical payments could not be said to be fair, given that the net effect of the order created a position whereby the wife had the greater share of his net disposable monthly income. He sought to discharge the order and replace it with an order for spousal maintenance of £1,000 per month instead of the current £4,700 under the global maintenance order. The judge found the husband had underestimated how difficult it would be for the wife to find work whilst caring for three children, one of whom required special care because of a medical condition. Conversely, the husband was likely to retain his present position, and it was not unlikely that his earnings would significantly increase. It was calculated that the husband’s disposable income would increase to approximately £5,340 per month and therefore be higher than the wife’s. This ground of appeal was rejected by the court.
3. Was the departure from equality fair?
In the original hearing, the judge departed from equality in favour of the wife and left the husband with a reduced share from which to meet his own future housing needs. Since the original order had been made, the wife had reorganised her living arrangements and invested her share of the former family home in another property, making various repairs and improvements. The judge described the small uplift of capital as reasonable and explained to the husband that it was well within the band of outcomes through the exercise of discretion under section 25 of the Matrimonial Causes Act 1973.
The husband’s appeal was rejected and the court confirmed that global maintenance orders are within the “bounds” of legitimacy and do not contravene the Child Support Act 1991.
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