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A city broker has successfully persuaded the Court of Appeal to reduce the amount of maintenance he should pay his ex-wife as a result of her living with another man.
Richard Grey had been ordered by the High Court to pay his wife maintenance of £125,000 from a net income of £435,000 per year. During their divorce proceedings, his wife had admitted that she had become pregnant with her new partner, however was adamant that she was not living with him. Whilst it was accepted at the final hearing that the ex-wife was in a relationship with another man, Mr Justice Singer commented that there was no hard and fast test for cohabiting. He said that Mrs Grey should be entitled to maintenance in full until she remarried.
Mr Grey's reaction to the final hearing result was to hire a private detective to watch over his ex-wife's house. Following their separation she had moved from London to an affluent suburb of Dublin. Mr Grey's father, who lived very close to Mrs Grey's new home, also collected evidence about her relationship.
The resulting evidence was presented to the Court of Appeal, who were told by Mr Grey's legal team that it was repugnant that he should be ordered to pay that much maintenance to a household which included both the new partner and the ex-wife's new child by that new partner. The Court of Appeal ruled that the maintenance should be reassessed, taking into account the cash that the ex-wife's new partner could provide. As a result it is likely the level of maintenance will be greatly reduced.
Maintenance orders in England and Wales automatically come to an end on the remarriage of the person in receipt of the maintenance. Very often however, maintenance orders are drafted to end sooner than that, perhaps on the happening of a certain event or by a certain date or child's birthday. Cohabitation doesn't automatically end maintenance but can lead to a reduction as in the Grey case - it depends on the financial resources of the new partner.
When divorce proceedings and financial agreements are being progressed it is sometimes appropriate for interim maintenance to be paid. It is often possible for husband and wife to agree the level of interim maintenance themselves, however care must be taken when doing so, just to ensure that one isn't paying too much or receiving too little.
For this reason it is advisable that legal advice is taken at an early stage. We frequently advise on maintenance levels and understand the approach adopted by Courts when assessing the level of maintenance that should be paid.
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