With the recession continuing to deepen and the credit crunch biting harder, it seems everyone is looking for a way to cut back on their monthly outgoings. Gym memberships, expensive cars, designer clothes and meals out are all obvious areas for economies. But what many people overlook is how maintenance payments can be adjusted to reflect a current situation. That is to say they can be either decreased, or increased in some cases.

If a person is paying spousal maintenance or child maintenance under the terms of a court order, they cannot simply take a decision that they can no longer afford it due to a change in circumstances. This could result in a court order being made against them for any missed payments, plus the court costs. The first port of call should be for the person to speak to their ex-partner, if viable, to see if they will agree a reduction to reflect their financial circumstances. If so, they will need the advice of an experienced family lawyer to ensure this agreement is legally binding and formally recorded.

The next step if an ex-partner will not voluntarily agree a reduction, is to seek the advice of a family law specialist to advise on the merits of their position and an application to court if required. As long as a person can demonstrate to the court that there has been a significant change in circumstances, a downward variation is a likely prospect.

If someone has been made redundant, or had their working week reduced or been forced to take a drop in income, these are factors that would facilitate such an application. The key issue is to take proper legal advice from a specialist family law firm.

Similarly, if a person is paying child maintenance through a CSA arrangement, it is important that the payee seeks advice as soon as their circumstances change.

The recipient of spousal or child maintenance as a result of a court order or CSA assessment may well be able to apply for an increase in the amount paid if their circumstances are left worse by the current economic crisis. Many court orders have a built-in, inflation-linked, yearly increase, but if there has been a substantial reduction in income, a person may be able to apply for an additional increase. The key issue is to show that something “unforeseeable” has happened. However, it will also need to be proved that the estranged partner is in a position to pay at an increased level.

Whatever a person’s position, it essential that they take advice from a family law specialist experienced in dealing with maintenance matters rather than taking drastic action themselves. It may seem like an additional expense at a difficult time, but some firms will be happy to give an initial free over-the-phone consultation. If additional legal services do ultimately need to be paid for, it is likely that it will still save pennies in the long run for all concerned.

For advice on this and other financial issues relating to separation and divorce, contact Woolley & Co at www.family-lawfirm.co.uk or call 0800 321 3832.

Jamie Skelding is managing director of the Coventry branch of Prime Chartered Accountants in Coventry who specialise is all aspects of financial business advice.

He joined the firm in 1985 and feels the emphasis on his work has shifted significantly from a traditional view of accounting to more business management consulting - the image of people sitting at desks adding up figures is a long way from the truth.

His team now offers a range of wider business services to clients. For example, they are regularly called on to help value the assets of a business in the event of a couple splitting up and there being a going concern involved.

"For years we have seen the accountants' market developing, changing from seeing clients once a year to do their tax return, to developing a closer business relationship to give ongoing advice," said Jamie, who is married with a young son.

"Businesses have to know where they are and set targets of their aims and aspirations. Only by doing this and measuring their performance can they hope to stay competitive in the increasingly tough business environment.

"I fell into accountancy in the first place but got a liking for the diversity of the work. I worked my way up, did my qualifications and after a brief time away from the firm was offered a partnership role.

"When a couple are divorcing and there is a business involved, we can help look at the level of assets involved, the requirement to value those assets and the business as a whole to help with any financial settlement.

"These assets can be significant and complicated to sift through, but we have the expertise to work through it and assist both parties in, ultimately, reaching a fair conclusion."

Jamie can be contacted on 024 7622 0208,
on email jbskelding@primeaccountants.co.uk,
or by visiting www.primeaccountants.co.uk

Couples split but are forced to live together

The recession is forcing more couples who have split up to continue living together because they cannot afford to sell their house at a loss amid plunging property prices.

Many cannot afford to strike out on their own without getting equity out of the property they bought with their ex partner – but cannot sell the house and so must continue living together for the foreseeable future.

The BBC reported Gemma Appleyard had been with her boyfriend Ben Blackwell for three years when they bought a two bedroom terrace house for £350,000 in Hither Green, south-east London, last June but they split up in November and cannot afford to sell the property at a loss.

They looked into renting it out, but found the rental yield would not cover the mortgage and they would have to come up with £400 each month, as well as whatever rent they would be paying.

A £70,000 loss on the house was too much for Gemma and Ben to take, so they have resigned themselves to living together until property values go back up.

Woolley & Co Managing Partner, Andrew Woolley expressed sympathy for the couple: “We are even seeing married couples in similar circumstances. In either event it is important to have some kind of formal agreement in relation to the joint property and finances so that when the market changes everyone is clear on what they are entitled to.

“Should Gemma or Ben lose their jobs, for example, who would be responsible for mortgage payments?”

Family courts opened to the media

Family courts are now open to the media for the first time under new rules that came into force at the end of April.

Concern has been expressed over the new rules, including by the Law Society, but though reporters are now allowed into courts, the law remains that in many cases they cannot identify those involved, particularly where children are involved, unless the judge specially says that they can.

However, industry bodies for journalists, including the Newspaper Society and the Society of Editors, have written to Justice Secretary Jack Straw urging for further reforms to lift reporting restrictions as without them, the new “open” policy is pointless.

Judith joins the team

Family law specialist Woolley & Co has another new face among its ranks as its expansion continues.

Family solicitor Judith Buckland joined the firm at the end of April, working from her base in Truro, Cornwall, in close proximity to family lawyer Sue Harwood.

Judith has specialised in family law for more than 15 years and will offer a full range of services, from divorce to children matters and financial agreements, complementing the services already offered by Sue.

“I moved to Cornwall 12 years ago to try for a better work-life balance. Joining Woolley & Co is another aspect of that. I approached the firm after hearing about them and am really looking forward to working in a completely new way,” she said.

Read more about Judith on the Woolley & Co website

Do you Tweet?

Jonathan Ross does it, Stephen Fry does it – and now Woolley & Co does too!

Twitter is the latest social networking phenomenon, allowing people to update others on what they are up to and pass on useful information in short messages of up to 140 characters.

Woolley & Co is now a member so if you are Twittering, follow Woolley & Co (http://twitter.com/woolleyandco) to find out what we are doing. If you don’t Twitter, why not have a look? It is a fantastic way to get your news out to a potentially huge audience.

Woolley & Co sign up for The Divorce Show

In September this year the NEC will host The Divorce Show, being billed as the UK's largest national event dedicated to delivering a wealth of information, helpful advice and practical resources to an anticipated audience of 20,000 visitors for whom the question of divorce brings no easy answers.

Woolley & Co will be involved as speakers, exhibitors and sponsors in the event, as well as offering free face-to-face consultations.

The organisers are interested in other professionals who want to become involved in exhibiting. Contact Catherine Castle by email here.