Banner
spacer
print  Print page  
Report 113 (2006) - Relationships

10. Partner maintenance

Updates and background for this project (Digest)





INTRODUCTION

10.1 Partner maintenance can be awarded in the context of marriage under the Family Law Act 1975 (Cth) (“the FLA”) and in the context of domestic relationships under the Property (Relationships) Act 1984 (NSW) (“the PRA”). But the approach to maintenance under the FLA starts from a different premise to that in the PRA. Under the FLA there is a general obligation on married parties, where their spouse is unable to maintain him or herself adequately, to maintain each other to the extent to which they are reasonably able to do so,1 while, under the PRA, a party to a domestic relationship is not liable to maintain the other, nor to claim maintenance from the other.2 The differing starting points of the legislation do not mean much in practice since each Act immediately qualifies its general premise: the FLA by limiting the general obligation to specified circumstances; the PRA by creating exceptional circumstances in which maintenance is claimable. However, consistent with their differing premises, the circumstances in which a party to a marriage is liable to maintain the other party are wider under the FLA than the exceptional circumstances in which a party to a domestic relationship is liable to maintain the other party under the PRA.

10.2 Under the FLA a party to a marriage who is reasonably able to do so becomes liable to maintain the other party where that other party cannot support him or herself adequately because he or she has the care and control of at least one child of the marriage who has not attained 18 years of age; because he or she is unable to engage in appropriate gainful employment by reason of age or physical or mental incapacity; or for any other adequate reason.3 In contrast, s 27 of the PRA provides that, before awarding maintenance, the Court must be satisfied that the applicant is unable to support him or herself adequately because:

    • he or she has the care or control of a child of the parties to the relationship, or a child of the respondent, who is under 12 years of age (or 16 if the child has a physical or mental disability); and/or
    • his or her earning capacity has been adversely affected by the circumstances of the relationship, and the Court is of the opinion that a maintenance order would increase the applicant’s earning capacity by enabling the applicant to undertake training or study and, in all the circumstances of the case, it is reasonable to make such an order.
10.3 The differing approaches to maintenance under the FLA and the PRA are readily explicable. Maintenance derives from the desire, originally manifest in the more general poor laws aimed at alleviating destitution, to provide some protection for married women on the breakdown of a relationship to which the parties had publicly made a lifelong commitment, and which also generally involved further assumptions about the procreation of children, gendered role divisions and financial dependency.4 The justification for maintenance is found in the loss by the wife of the continuing support that she had expected to receive from her husband by reason of the spousal dependency involved in foresaking financial gain for the period of their joint lives.5 This is a “compensatory” view of maintenance, which the Family Court has, in some cases, endorsed.6 In contrast, relationships outside marriage involve no public commitment and their diversity makes it impossible to presume a general commitment to a lifelong relationship involving financial dependency of one partner on the other. Assumptions underlying the function of maintenance in the context of marriage cannot, therefore, be made in the case of de facto relationships generally and same sex relationships in particular, where, in contrast to heterosexual relationships, a public commitment to lifelong partnership is impossible and any role division in the relationship cannot be gendered (although there may be a power imbalance between the parties).

10.4 In de facto relationship cases, the justification for maintenance must, then, be sought elsewhere. The PRA finds that justification in concepts of “custodial” maintenance (where applicants have the care of a child of the parties or a child of the respondent) and “rehabilitative maintenance” (where applicants’ earning capacity has been adversely affected by the circumstances of the relationship, and a maintenance order has the ability to increase their earning capacity through training or education).7 While the FLA also adopts, more broadly, the custodial philosophy of maintenance,8 its endorsement of maintenance in cases where applicants are unable to support themselves adequately “by reason of age or physical or mental incapacity for appropriate gainful employment”9 goes beyond the PRA’s concept of rehabilitation since the availability of maintenance is not restricted to incapacities that can be attributed to the relationship. Further, the FLA’s authorisation of maintenance “for any other adequate reason”10 is not expressly tied to any particular theory of maintenance. And a number of general theories of maintenance are possible, ranging from approaches based strictly on the needs of the applicant, through custodial and rehabilitative approaches, to those that openly seek to redistribute the wealth of the parties on separation against the social context in which the relationship existed.11

10.5 In 1983 the Commission thought that the differences between marriage and a de facto relationship dicated a much narrower power to award maintenance in de facto relationship cases than in marriage cases. We wrote that:

      [A]ny maintenance obligation associated with a de facto relationship should be confined to meeting specific and narrowly defined categories of needs, which can be attributed to the relationship between the parties and for which the other party can fairly be said to share direct responsibility.12
10.6 We also thought that it was important to acknowledge and encourage the trend towards parties’ taking responsibility for their own support “to the maximum extent practicable” – a trend manifested in the then restrictive interpretation of the power to award maintenance under the FLA and of the criteria governing such awards.13

10.7 The legal context in which we revisit the issue of maintenance in 2006 differs in at least two significant respects from that which existed immediately after the implementation of our 1983 recommendations in the De Facto Relationships Act 1984 (NSW). First, the PRA’s maintenance regime now applies not only to de facto relationships but also to close personal relationships. To such relationships, the custodial basis of maintenance has no relevance. Nor, generally, does a compensatory basis, since there is no foundation for a presumption of lifelong commitment justifying continuing support. As a generalisation, maintenance would seem capable of serving, at most, a rehabilitative function in such cases by providing, for example, carers who are unable to support themselves adequately by reason of having given up paid employment to look after an elderly relative with the means of now increasing their earning capacity through training or education.

10.8 Secondly, we are now faced with the possibility that the substance of the FLA maintenance regime will in future apply to opposite sex de facto relationships,14 as is now the case in Western Australia.15 This possibility raises, in a more focused form, the option, raised in DP 44, of reforming the law of partner maintenance in this State by mirroring the approach of the FLA in the PRA,16 an option supported in some submissions,17 but rejected in others.18 If this possibility eventuates, the justification of continuing to have a separate regime under the PRA in respect of same sex relationships will have to be found either in shortcomings in the maintenance provisions of the FLA or in the unsuitability of applying those provisions to gay and lesbian relationships. Such unsuitability could be found in characteristics of same sex relationships that distinguish them from opposite sex de facto relationships, and in the inability of the maintenance provisions of the FLA to accommodate the distinctions. Absent such distinguishing factors, however, the argument for treating all de facto relationships equally would be compelling and weigh heavily in favour of the assimilation of the PRA’s maintenance regime with that of the FLA, assuming that the FLA regime is otherwise acceptable.

10.9 Against this background, this Chapter investigates both the need for, and the reach of, maintenance under the PRA in its application to gay and lesbian relationships and close personal relationships. There are four live issues:

    • the link between the maintenance and property adjustment provisions of the PRA;
    • the circumstances in which maintenance should be available;
    • the factors that ought to be relevant to the Courts’ determination of maintenance; and
    • the relationship between maintenance and social security.
10.10 In view of the submissions received by the Commission in response to DP 44, the views of our consultees and the responses to our Questionnaire on Same Sex Relationships and the Law, the Commission is not proposing any changes to sections of the PRA that touch on the form, duration, variation or extension of maintenance orders (including interim orders) except in so far as consequential amendments are necessary to relevant sections of Part 3 Division 3 of the PRA to accord with the recommendations in this Chapter.



THE RELATIONSHIP BETWEEN MAINTENANCE AND PROPERTY ADJUSTMENT



Is maintenance necessary?

10.11 Maintenance is one of two financial adjustment orders that a court can make under Part 3 of the PRA. The other is a property adjustment order, which is considered in Chapters 7 and 8. The ability of the courts to make property adjustment orders under s 20 raises the issue whether there is a need for a separate power to award maintenance under s 27. Two closely related questions are embedded in this issue: does maintenance have an independent function to property adjustment; and, even if it does, does it have to be considered independently of the property adjustment process?

10.12 Under the PRA as it currently stands, the answer to the first question is clearly in the affirmative. Property adjustment and maintenance orders simply serve different purposes. A property adjustment order seeks to effect a just and equitable alteration of the interests with respect to the property of the parties, having regard to their contributions to the property, to the financial resources or to the welfare of each other or their family. In contrast, a maintenance order seeks to make provision for a party to the relationship who is unable to support him or herself either because he or she has care and control of a specified child or because his or her earning capacity has been adversely affected by the relationship and that capacity can now, reasonably, be enhanced by particular training or education. It follows that in so far as a property adjustment order puts the applicant in a position to support her or himself adequately, an award of maintenance cannot be made.19

10.13 Apart from this, there is little room for the direct interaction of property adjustment and maintenance orders. At most, there is a danger of “double dipping”, that is, of taking the same factor into account in determining a maintenance order that has already been taken into account in the determination of a property adjustment order. For example, while the applicant’s desire to remain at home in a parenting role is a factor relevant to the determination of “custodial maintenance” under s 27(1)(a) of the PRA,20 it would be inappropriate to take it into account if it had already influenced the determination of a property adjustment order or proposed order.21 However, because property adjustment orders under s 20 have their focus on past contributions, while maintenance under s 27 is only available in closely defined custodial and rehabilitative settings, double dipping should arise infrequently, if at all.

10.14 This will change if the recommendations in this Report are implemented. The Commission has already recommended that the property adjustment provisions of the PRA should be altered to align with those of the FLA,22 a recommendation that paves the way for some consideration of future needs in property adjustment proceedings themselves. The existing custodial and rehabilitative bases of maintenance in the PRA look to the need for future support, and, while these provisions are limited, our recommendations would widen them,23 raising the real prospect that claims for loss of support in the future could straddle property adjustment and maintenance claims. This raises the question whether or not maintenance orders are necessary at all once property adjustment orders are available in circumstances that essentially mirror those in the FLA.

10.15 As already noted, the FLA continues, to provide for maintenance orders, and the jurisprudence of the Family Court acknowledges a continuing need for them.24 The most important reason is found in cases in which there are few property assets for division, but one spouse has a continuing need for support and the other has the capacity to provide that support.25 Take this example: a wife has, for the period of the parties’ marriage, devoted herself to the care and rearing of their family, losing the professional skills she had at the beginning of the marriage. On the breakdown of the marriage, she has significant responsibilities in support of herself and the children. In contrast, her husband has, during the marriage, developed his earning capacity to a high and ongoing level. On the breakdown of the marriage, the parties have few assets that can be made the subject of an adjustment order. In the course of dealing with just such a case (where the claim for maintenance was, however, abandoned), the Full Court of the Family Court said:

      In cases … where there are minimal assets, but on the one side significant needs and on the other a significant future earning capacity, the power to order lump sum maintenance, which may be met by annual payments over a period of years against that income or savings from it, may be an appropriate course. In such cases, and provided that the requirements of the Act are otherwise satisfied, it may be a mistake to conclude that where there are few assets they should be divided and that that is the end of the matter other than for periodic maintenance.26
10.16 The availability of (lump sum) maintenance here meets a need that a property adjustment order cannot meet conveniently, since, at the time of the proceedings, there is insufficient property to which such an order can apply.27

10.17 There are at least two other circumstances in which there is a need for maintenance that cannot be met by a property adjustment order. The first is where the circumstances of the parties or of the case – for example, particular uncertainties in the future – suggest the necessity for periodic maintenance variable, at the instance of either party, in the light of changing conditions.28 Unlike a periodic maintenance order, other maintenance orders and property adjustment orders are only variable in restricted circumstances.29 The second is where an interim maintenance order is made in favour of an applicant who is in need of immediate financial assistance but where it is not practicable in the circumstances to make an immediate determination of what (if any) order should be made under Part 3.30



Empirical information

10.18 Of the respondents to the Commission’s Questionnaire on Same Sex Relationships and the Law, only 10% thought that partners should never have to pay maintenance to their ex-partners.31 This figure contrasts strongly with a 1999 study published by the Australian Institute of Family Studies (“AIFS”) that found that only a little over half of the sample (54%) believed that spousal support should ever be paid on divorce. Of the sample, 62% of divorced females were in favour of spousal support being paid, but only 43% of divorced males.32

10.19 The majority support for spousal maintenance is not matched by its incidence in practice. The AIFS study found that spousal maintenance is awarded in less than 7% of divorces.33 A further 10% of respondents said they had paid or received spousal maintenance through a larger share of the assets at the property division, meaning that 16% of respondents reported having paid or received some form of spousal maintenance. Behrens and Smyth comment:

      [T]here is a substantial mismatch between attitudes to spousal support (majority in favour) and behaviour (very low levels of incidence). One explanation for this apparent disparity is the potential mismatch between the capacity to pay and the willingness to do so. There may also be a mismatch between the law about spousal support and the legal system’s attitudes towards it, and broader community attitudes. Thus while a payer may be willing to pay spousal support and a receiver keen to receive it, their negotiations will take place in the ‘shadow of the law’, which includes the legal advice they are given. If the advice is that we do not usually pay or receive spousal support, this may impact on outcomes irrespective of individual attitudes.34
10.20 There are no studies showing the incidence of maintenance in de facto relationship cases, whether opposite sex or same sex. The impression from the reported cases is that it is likely to be even lower than in marriage cases, suggesting that the legislative provisions are simply not being used. In Jenni Millbank’s 2000 study of 237 matters filed in the ACT Magistrates and Supreme Courts under the ACT equivalent of the PRA it appears that only one file involving a heterosexual cohabiting relationship included a claim for maintenance.35

10.21 There are no statistics concerning the incidence of maintenance in close personal relationships. Nor do we know anything about community attitudes to maintenance in the context of such relationships.



The Commission’s view

The function of maintenance

10.22 The Commission believes that maintenance has a place in the PRA and should continue to be available. Even if, in accordance with Recommendation 27 of this Report, property adjustment orders become available under the PRA under the same conditions as in the FLA, the circumstances in which maintenance may be needed are applicable, in principle, to de facto relationships, whether opposite or same sex. In particular, maintenance would seem to have a role in cases involving the breakdown of a relationship where a property adjustment order is of little help because there are few assets but a need in one party for support and a capacity in the other party to pay; as well as in cases calling for periodical and interim payments. The same is true in the case of close personal relationships. In all cases, the interaction of maintenance with property adjustment orders, particularly any attempt at double dipping, is appropriately dealt with in the discretion of the Court.

10.23 There is no empirical evidence to suggest any other approach in this context. Indeed, while a small sample, the respondents to the Commission’s Questionnaire showed strong support for the continued availability of maintenance on the breakdown of gay and lesbian relationships. The reasons for the contrast of this response and that obtained in the AIFS study of divorcees (where there was a bare majority in favour of the availability of maintenance on divorce) are not known. On the one hand, disparity between support for maintenance and its incidence in practice is more easily explicable in the context of gay and lesbian relationships where fear of homophobia may prevent recourse to dispute settlement procedures.36 On the other hand, it may be conjectured that there is generally less desire for a “clean break” on the termination of gay and lesbian relationships than there is in the case of opposite sex relationships and so less of a dislike of maintenance with its connotations of ongoing support. Only 25% of respondents to the Questionnaire favoured lump sum over weekly or monthly maintenance as a means of promoting a “clean break” between the parties,37 although some support for the “clean break” principle was expressed in the focus groups.38

The independent consideration of maintenance

10.24 The Commission notes that 81% of respondents to our Questionnaire also believed that Courts should consider maintenance as part of the overall process of property division between partners on the breakdown of a relationship.39 To the extent to which their legislative schemes permit circumstances relevant to the award of maintenance under the PRA to be taken into account in a property adjustment order, this is effectively the approach in Queensland40 and Victoria41 where no provision is made for maintenance orders. In the Commission’s view separate provision should continue to be made for maintenance orders. While the implementation of our recommendations concerning property adjustment orders could allow the Courts to encompass within them matters relating to future support that are traditionally embodied in maintenance orders, we believe that their separate consideration and assessment not only ensures that they are addressed in practice, but also gives the Court the flexibility to issue orders that are needed in the changing circumstances of the cases mentioned in paragraphs 10.15-10.17.



CIRCUMSTANCES IN WHICH MAINTENANCE SHOULD BE AVAILABLE

10.25 The last section concluded that maintenance orders should be available in addition to property adjustment orders. This section addresses the circumstances in which maintenance orders should be made. Two overriding questions arise: first, whether the custodial and rehabilitative grounds for maintenance under the PRA are adequate as currently formulated; and, secondly, whether the custodial and rehabilitative grounds should, in any event, be expanded.



Custodial maintenance

The justification for custodial maintenance

10.26 The custodial basis for maintenance enshrined in s 27(1)(a) of the PRA reflects the recommendations of the Commission in our 1983 Report that maintenance should be claimable where one party has the care and control of a child of the de facto relationship and is unable to support himself or herself by reason of child care responsibilities. We wrote:42

      If the non-custodial parent has the resources to support the custodial parent in meeting his or her own needs, we think it may be appropriate for a court to order the non- custodial parent to pay maintenance. The justification is that the child care responsibilities accepted by the custodial parent relieve the other partner of commensurate responsibilities, thereby perhaps preserving that partners income earning capacity. Moreover, the child care responsibilities limit the earning capacity of the custodial parent. In those circumstances we think it is fair for the non-custodial parent, in addition to providing support for the children, to shoulder part of the economic burden of meeting the needs of the custodial parent. We also think it may well advance the welfare of children for a custodial parent to have an additional source of support beyond social security payments and child maintenance.
10.27 We adhere to this view. We think that it applies equally in the context of the breakdown of gay and lesbian relationships. In the context of such relationships, however, the expression “child of the parties of the relationship” in PRA s 27(1)(a) needs to be understood broadly to include any child for whose day-to-day care and long-term welfare both parties exercise responsibility. Recommendation 17 of this Report is designed to achieve this objective.

Age limits on custodial maintenance

10.28 Section 27(1)(a) of the PRA currently limits the availability of custodial maintenance by reference to the ages of the children in the care and control of the resident partner (under the age of 12 years or if the child has a physical or mental disability under the age of 16 years). The legislation of some Australian jurisdictions is to like effect.43 In contrast the FLA prescribes 18 years and makes no reference to a different age with respect to children with a disability.44

10.29 In their joint submission, the NSW Commissioner for Children and Young People and the National Children’s and Youth Law Centre drew attention to the different treatment of married and unmarried couples in relation to custodial maintenance orders. The submission referred to the cut-off ages in the PRA as “arbitrary”, pointing out that:

      Children vary in their needs and older children sometimes require greater parental care and attention than younger children. If there are several teenage children in the family it will be difficult for the parent or carer to work full-time.45
10.30 Agreeing that the cut-off ages in the legislation may cause difficulties for resident parents in certain circumstances, NSW Young Lawyers suggested that there should be a discretion to allow maintenance for parents of older children in cases where the court may consider this appropriate.46

10.31 Respondents to more specific questions in the Commission’s Questionnaire on Same Sex Relationships and the Law were not in agreement about the age limits that should apply in the case of custodial maintenance. 23% of respondents thought maintenance should be paid until the youngest child starts school, while 6% thought it should be paid for up to 3 years regardless of how old any children of the relationship are.47

10.32 The Commission is of the view that the cut-off ages of 12 and 16 in the PRA are arbitrary and cannot be justified. While rationales for these age limits can be found in the encouragement they provide custodial parents not to become reliant on maintenance, and in the likelihood of a custodial parent being able to return to the work force once a child is older, there is no guarantee that the latter is either desirable or possible, especially in the case of children with a disability. Because the circumstances are so variable, the Commission prefers that courts should have the power to make maintenance orders in any case in which applicants for maintenance are unable to support themselves because of their care or control of a minor child of the relationship.


    Recommedation 32
        PRA s 27(1)(a) should be amended to provide an age limit of 18 years for all children. PRA s 30 (1) should be amended consequentially.




Rehabilitative maintenance

10.33 The rehabilitative basis for maintenance enshrined in s 27(1)(b) of the PRA also reflects the recommendations of the Commission in our 1983 Report. We wrote that maintenance ought to be available where:48

      a person’s earning capacity has been adversely affected by the de facto relationship (for example, because domestic responsibilities have precluded that person acquiring marketable skills), and some training or retraining is required to enable the person to undertake gainful employment. In these circumstances we think it may be proper to require the other party, assuming that he or she has the necessary resources, to contribute to the reasonable cost of the training, for a limited period of time. The justification for this is that the party seeking support has forgone career or training opportunities which otherwise might have been available, and devoted energies to the household. To the extent that the other party has accepted or encouraged this course of conduct, it is fair that he or she, within the limits of available resources, should bear some responsibility for the cost of restoring financial independence to the person requiring retraining.
10.34 The FLA approach is much wider, allowing a claim where a spouse is unable to support him or herself adequately “by reason of age or physical or mental incapacity for appropriate gainful employment”.49 The legislation in Western Australia is identical to the FLA.50 In contrast, the Tasmanian legislation retains a rehabilitative focus by allowing an applicant who cannot support him or herself adequately to claim maintenance because “the partner’s earning capacity has been adversely affected by the circumstances of the personal relationship”.51 The same is true of the legislative provisions in the Australian Capital Territory and the Northern Territory, which mirror the New South Wales legislation.52

10.35 The Commission favours the FLA approach. We do not believe that the narrow rehabilitative approach that we adopted in 1983 remains appropriate. First, that approach does not sit easily with Recommendation 34 that maintenance should be awarded for “adequate reason” not specified in the legislation. Secondly, the approach puts a premium on the distinction between marriage and de facto relationships that may well be productive of injustice in cases where the parties have committed themselves, either at the beginning of their relationship or in the course of its development, to a partnership of unlimited duration. Take the following example:53

      Ms A and Ms B have lived in a de facto relationship for 20 years. They met when they were both students at University. On completion of their studies, Ms A moved in with Ms B. Ms A had previously lived with her parents and was unemployed. Ms A and Ms B have two children who, pursuant to their mutual desire and agreement, were born in the course of their relationship as a result of in vitro fertilisation procedures. Throughout the relationship, Ms A was the homemaker and supported Ms B in her career. During her successful career, Ms B accumulated substantial wealth.
10.36 The Commission can think of no reason why maintenance (whether styled “compensatory” or “rehabilitative” in a broad sense) should operate differently in such a case depending on whether or not the parties have made a public commitment in marriage. Indeed, it must be remembered in this context that lesbian and gay partners simply cannot make that public commitment. In the instant case, if she cannot support herself adequately on the breakdown of her relationship with Ms B, it is just that Ms A should be entitled to maintenance aimed at enhancing her earning capacity, whether or not that capacity has been adversely affected by the circumstances of the relationship.

    Recommendation 33
        PRA s 27(1)(b) should be amended to empower a court to award maintenance where it is satisfied that the applicant is unable to support himself or herself adequately by reason of age or physical or mental incapacity for appropriate gainful employment.




A catch-all provision?

The FLA, Western Australian and Tasmanian legislation

10.37 The FLA and the Western Australian legislation allow for the award of maintenance where the applicant is unable to support him or herself adequately “for any other adequate reason”.54 There is also a catch-all phrase in the recently enacted Tasmanian legislation, but it is narrower. It allows a court to make an order for maintenance where the applicant is unable to support himself or herself adequately because “of any other reason arising in whole or in part from the circumstances of the personal relationship”.55 Unlike the FLA and Western Australian provisions, the Tasmanian legislation retains a rehabilitative focus even under its catch-all provision.

The Commission’s view

10.38 The main benefit of a catch-all provision is, of course, that it allows for unspecified circumstances to be considered in developing the court’s jurisdiction to award maintenance. The Commission is of the view that such a provision is called for in this context because we have little or no information about the need for, and operation of, maintenance in the context of the breakdown of same sex and close personal relationships, and, indeed, how such relationships differ in this respect from marriage and other heterosexual relationships. Consistent with our lack of knowledge, we think that such a provision should be kept as wide as possible. We, therefore, favour the FLA approach to that in the Tasmanian legislation. But we express no view about how such a provision should be interpreted – for example, whether it should generally be tied to a rehabilitative rationale or not.

10.39 In this regard we draw attention to a clear tension in the responses to our Questionnaire on Same Sex Relationships and the Law between a general sentiment in favour of treating all de facto relationships equally and the specific view that the grounds of maintenance should not be expanded beyond those currently available in the PRA. While 93% of respondents were of the view that, on the breakdown of a relationship, the law should treat same sex relationships in the same way as opposite sex de facto relationships, 80% thought partners should pay maintenance to an ex-partner in the circumstances currently set out in the PRA.56 And 31% of respondents were more specific: in the absence of children of the relationship, maintenance should only be paid for up to three years where its purpose is retraining or study.

10.40 As in other contexts,57 the tension is understandable since the approach of treating all de facto relationships equally runs the risk of overlooking significant differences between various types of relationships. In the context of maintenance, that tension is brought to the fore not only because maintenance is capable of serving a variety of purposes that, potentially, vary depending on the relationship in issue, but also because maintenance raises the prospect of a necessity for an ongoing association between the parties, especially where one party must make periodic payments to the other. This qualifies the “clean break” principle, which is variously enshrined in both the PRA58 and the FLA,59 and which requires a court, in making orders under the legislation, so far as is practicable, to determine finally the parties’ financial relationships, and to avoid further proceedings between them. Among others, this principle has the laudable objective of encouraging both parties to move on with the rest of their lives.

10.41 The tension that we have observed can, in our view, only be addressed and resolved in the context of a developing jurisprudence reflecting the courts’ experience in dealing with maintenance in the context of the breakdown of gay, lesbian and close personal relationships.


    Recommendation 34
        PRA s 27 (1) should be amended by inserting a new sub-paragraph (c) that empowers a court to award maintenance where it is satisfied that the applicant is unable to support himself or herself adequately for any other adequate reason. Consequentially:
          • the words “either or both” in s 27(1) should be deleted and the words “any or all” inserted;
          • PRA s 30(2) should be amended so that it applies additionally to the new s 27(1)(c); and
          • section 30(3) should be amended to include a reference to the new s 27(1)(c).




FACTORS RELEVANT TO THE COURT’S DETERMINATION OF MAINTENANCE



The PRA and FLA factors

10.42 Once the threshold requirements for a maintenance order are satisfied, a court has to determine if it will make such an order and, if so, what the amount of the order should be. In doing so, the court must have regard to the factors listed in section 27(2) of the PRA, which are as follows:

      (a) the income, property and financial resources of each party to the relationship (including the rate of any pension, allowance or benefit paid to either party to the relationship or the eligibility of either party to the relationship for a pension, allowance or benefit) and the mental and physical capacity of each party to the relationship for appropriate gainful employment,

      (b) the financial needs and obligations of each party to the relationship,

      (c) the responsibilities of either party to the relationship to support any other person,

      (d) the terms of any order made or proposed to be made under section 20 with respect to the property of the parties to the relationship, and

      (e) any payments made, pursuant to an order of a court or otherwise, in respect of the maintenance of a child or children in the care and control of the applicant.

10.43 In contrast, section 75(2) of the FLA provides a lengthier, and non-exhaustive, list of factors that are relevant to the determination of spousal maintenance. Professor Fehlberg has grouped these factors, which have been set out in paragraph 7.20, into three broad, overlapping, categories as follows:
      (a) the parties’ post separation personal circumstances (including their age, health, earning capacity, financial resources, commitments necessary for self-support and support of others they have a duty to maintain, and any property order made under the FLA or any financial agreement binding between parties);

      (b) the past circumstances of the marriage (contributions of the applicant to the economic well being of the other party, and the extent to which the duration of the marriage has affected the applicant’s earning capacity); and

      (c) the 75(2)(o) considerations of conduct (in essence, only conduct having financial consequences is considered relevant).60

10.44 The Commission has already recommended that the “s 75(2) factors” be relevant to the determination of a property adjustment order under the PRA.61 The Commission considers that, once listed in the legislation, these factors should also be relevant to an award of maintenance under the PRA. We recognise that we have left open the question whether the interpretation of the circumstances in which awards of maintenance can be made under the PRA should develop in such a way as to mirror the approach under the FLA. However, we believe that, once the jurisdictional hurdles are satisfied, the court should have as wide a discretion as possible to determine whether maintenance is appropriately awarded in the case at hand and at what level that maintenance should be. Our lack of knowledge of the operation of maintenance orders in the context of gay, lesbian and close personal relationships dictates that the discretion should, in this respect, be kept as wide and flexible as possible.

10.45 As in the case of property adjustment orders,62 this raises the question whether any of the factors in s 75(2) need to be modified because their application would be inappropriate in the case of lesbian, gay and close personal relationships. This requires, in particular:

    • consideration of factors requiring modification in drafting to allow for their application to lesbian, gay and close personal relationships; and
    • discussion of entry into another domestic relationship as a factor relevant to maintenance.

Factors requiring modification in drafting

10.46 Obviously the references in s 75(2) to other sections in the FLA will need to be amended to refer to corresponding provisions in the PRA. Again, the references to “marriage” in s 75(2) will have to be replaced by “domestic relationship” or “relationship”.

10.47 The Commission draws particular attention to the following points:

    • Section 75(2)(c) as redrafted will refer to “a child of the parties to a domestic relationship”, which will itself have been redefined in accordance with Recommendation 17.
    • The references in s 75(2)(f) to pensions, allowances and benefits should remain as they are in view of Recommendation 39.
    • The words “or divorced” should be deleted from s 75(2)(g).
    • Section 75(2)(m) should be reformulated in accordance with Recommendation 38.
    • Section 75(2)(n)(ii) should be omitted for the reason give in paragraph 7.104.

Entry into another relationship

10.48 Section 75(2)(m) of the FLA provides that if either party to a marriage is cohabiting with another person, the court is to take into account the financial circumstances relating to that cohabitation as a factor relevant to spousal maintenance. The operation of this factor is, potentially, affected by existing provisions in the PRA relating to the effect of a subsequent relationship or marriage on:

    • the ability to institute an action for maintenance, the rule being that a person who has entered into another domestic relationship or married or remarried is not permitted to institute a claim for maintenance from his or her former partner;63 and
    • an existing maintenance order, the rule being that an award of maintenance in favour of a party to a domestic relationship ceases on the marriage or remarriage of that party.64
10.49 The FLA, as well as the legislation in the Northern Territory and Tasmania, all contain provisions relating to the effect of “re-partnering” on an exisiting maintenance order. Section 82(4) of the FLA provides that a maintenance order in favour of a party to the marriage ceases to have effect on the re-marriage of that party unless, “in special circumstances”, the court orders otherwise. The legislation in the Northern Territory agrees with the PRA provision under which a maintenance order ceases on the marriage of a de facto partner in whose favour the order was made.65 Tasmanian law is to the same effect,66 providing, additionally, that a maintenance order ceases to have effect where the party in whose favour the order was made enters into a deed of relationship with another person.67 The Tasmanian legislation also accords with the PRA in prohibiting a person who has entered into a relationship with another person (or has married or remarried) from making an application for maintenance.68

10.50 In contrast, the Australian Capital Territory legislation says nothing about the effect of marriage, remarriage or re-partnering on existing maintenance orders or on the ability of the parties to claim maintenance. Instead, these are factors that may be considered relevant either when considering the financial resources or financial needs of the applicant69 or when considering an application to vary an order based on change of circumstances.70

10.51 DP 44 asked what effect “re-partnering” should have on the availability of maintenance.71 All respondents agreed that “re-partnering” should not be an absolute bar to the availability of maintenance, but simply a factor relevant to the determination of the availability or variation of a maintenance order.72 New South Wales Young Lawyers also noted that the current situation is anomalous in respect of close personal relationships, providing further support for a more discretionary approach to maintenance. Just under 50% of respondents to the Questionnaire on Same Sex Relationships and the Law thought that partner maintenance should cease when the partner in whose favour the order was made begins to live with a new partner.

10.52 In 1983 this Commission was equally divided on the issue whether a maintenance order should cease when a person in whose favour it was made entered into another de facto relationship (as opposed to a marriage or remarriage).73 The Commission is now persuaded by the majority of our respondents that entry into such a relationship ought not to have the automatic effect of (a) disqualifying a person from seeking a maintenance order or (b) causing the cessation of the order. The Commission is of the view that it can cause injustice if a new partner’s financial position or mere existence automatically removes the need for the ex-partner to provide for the applicant’s maintenance. Entry into a de facto relationship may not have the effect that the applicant is now able to support himself or herself. Whether it does so or not, and what its effect ought to be, is appropriately a matter to be considered on a case by case basis in the discretion of the court. It follows that Commission supports the inclusion in the PRA of an equivalent provision to FLA s 75(2)(m).

10.53 Consequentially, the Commission recommends that s 29 of the PRA should be repealed. For the reasons just given, entry into a new de facto relationship should not by itself rule out an application for maintenance against a former partner. In addition, entry into a de facto relationship or a new close personal relationship in itself would seem to have no relevance to an application for maintenance in the case of close personal relationships. Moreover, that part of s 29 which covers the marriage or remarriage of a party to a former relationship seems unnecessary. Apart from its likely irrelevance in the context of gay and lesbian relationships, the marriage will generally have the effect of removing the necessity for a maintenance order since an obligation to maintain the applicant will now rest on the (new) spouse.74

10.54 What effect ought marriage to have on an existing maintenance order? As just noted, the marriage will create an obligation in the new spouse to maintain the applicant. This explains the rule in the PRA that marriage or remarriage of the person in whose favour it was made terminates an existing maintenance order PRA.75 The FLA qualifies this by allowing the court to order otherwise “in special circumstances”.76 The Commission supports this qualification, which injects flexibility into a technical rule that otherwise must be rigidly applied.

10.55 The Commission also supports extending the rule that a maintenance order ceases on the marriage or remarriage of the person in whose favour it was made to the situation where a person in receipt of maintenance from an ex-partner enters into a registered relationship with another person (that is a relationship registered in accordance with the scheme proposed in Recommendation 15). Although entry into such a relationship does not automatically give rise to an obligation to maintain, it gives the parties the right to institute maintenance proceedings without having to satisfy the requirement that the de facto relationship has lasted for a period of two years, as would be the case if the relationship were unregistered. An amendment of s 32(1) of the PRA is necessary to achieve this and to bring the law of New South Wales into conformity with that in Tasmania.

10.56 The Commission does not believe that “re-partnering” (whether understood as marriage, remarriage or entry into a de facto relationship or another close personal relationship) has any relevance to claims for maintenance by parties in close personal relationships. This ought to be reflected in the wording of the s 75(2)(m) factor in its translation into the PRA.

10.57 A further change in the wording of s 75(2)(m) is necessary to remove the reference to “cohabitation”, which, in accordance with Recommendation 5, will no longer form part of the definition of “de facto relationship”.

Locating the 75(2) factors

10.58 The Commission notes that while the FLA’s “s 75(2) factors” are located in a section of the Act dealing with spousal maintenance, the factors are relevant both to orders adjusting property and to maintenance orders. The implementation of Recommendations 27 and 35 in this Report would result in these factors being relevant to all financial adjustment orders under Part 3 of the PRA. In the Commission’s view, thought should be given to listing these factors in a more obvious place in the Act than the Division that deals with maintenance.


    Recommendation 35
        PRA s 27(2) should be repealed and, with appropriate alteration of detail, the “s 75(2) factors” under the FLA should apply to the determination of maintenance orders under the PRA.

    Recommendation 36
        PRA s 29 should be repealed.

    Recommendation 37
        PRA s 32(1)(c) should be amended to provide that a maintenance order in favour of a party to a de facto relationship shall cease to have effect when that party enters into a marriage or remarriage or registered relationship with another person unless in special circumstances a court orders otherwise.

    Recommendation 38
        FLA s 75(2)(m) should be translated into the PRA as follows: “If either party has entered into a de facto relationship with another person – the financial circumstances relating to that relationship”.




MAINTENANCE AND SOCIAL SECURITY

10.59 Section 27(3) of the PRA provides:

      In making an order for maintenance, a court shall ensure that the terms of the order will, so far as is practicable, preserve any entitlement of the applicant to a pension, allowance or benefit.
10.60 The effect of this provision is to place the primary burden of support on the State, rather than on the former partner of a person in need of financial support. Section 27(3) results from a recommendation of this Commission in 1983, and reflects a deliberate decision of the Commission to preserve the social security system as a primary means of support for two reasons: first, because the system of maintenance that the Commission was recommending was much more restricted than that available to married couples under the FLA; and, secondly, because it would be unfair if the effect of introducing a maintenance system for de facto couples would be to reduce their economic security by substituting an uncertain source of income (from a former partner) for a reliable source (from social security).77

10.61 In contrast, the FLA places the primary burden of support on the former spouse, rather than on the social security system. Section 75(3) of the FLA directs the court, when exercising its jurisdiction to make a maintenance order, to “disregard any entitlement of the party whose maintenance is under consideration to an income tested pension, allowance or benefit”. This subsection was introduced in 1987.78 Before then, the FLA adopted an approach that was closer to the PRA’s current approach, directing the court to consider eligibility for a pension, allowance or benefit when determining an application for maintenance.79 That subsection was amended,80 and s 75(3) inserted, in 1987, because the government had “been concerned at the very high level of social security payments being made to divorced parties who have not made adequate provision for spousal maintenance”.81

10.62 The proposition that the responsibility for supporting an individual in financial need should fall primarily on the social security system, rather than on the individual’s former partner, can no longer be supported. This is especially the case if the Commission’s recommendation to expand the PRA’s maintenance provisions to reflect more closely the FLA provisions is adopted. The majority of States that provide for maintenance for de facto couples follow the FLA approach with respect to consideration of social security payments.82 In the Commission’s view, this trend reflects a more appropriate balance in the relationship between maintenance and welfare entitlements than currently exists in the PRA.


    Recommendation 39
        PRA s 27(3) should be replaced by a section that mirrors FLA s 75(3).
10.63 The Commission has also given consideration to the possibility of incorporating into the PRA a provision that mirrors s 77A of the FLA. Section 77A requires the court to specify the portion of a payment, or transfer of property, that is a payment of maintenance (as opposed to an adjustment of property). This section is designed to assist in the determination of social security allowances that are means tested according to income, and which may therefore be affected by an entitlement to maintenance.83 However, since the Social Security Act 1991 (Cth) defines “partner” to exclude people in same sex relationships,84 social security allowances which require consideration of partner maintenance will not be relevant to people in receipt of maintenance from a former lesbian or gay partner. It is therefore not necessary at this stage to recommend the adoption of a provision similar to s 77A. It may, however, become a more important consideration if relevant federal legislation is amended to encompass same sex partners.
FOOTNOTES

1. FLA s 72.

2. PRA s 26.

3. FLA s 72(1).

4. See generally A Dickey, Family Law (4th ed, Law Book Co, 2002) at 462-465.

5. Dickey at 465-466.

6. See Best (1993) FLC ¶92-418; Bevan (1995) FLC ¶92-600; Mitchell (1995) FLC 92-601, discussed in J Beherns and B Smyth, Spousal Support in Australia: A Study of Incidence and Attitudes (Australian Institute of Family Studies, Working Paper 16, 1999) at 8-10. See also the decision of the Supreme Court of Canada in Moge (1993) 99 DLR (4th) 456.

7. PRA s 27(1). This is a narrow view of rehabilitative maintenance since it purports to address a condition created by the relationship: see para 10.33-10.36.

8. FLA s 72(1)(a).

9. FLA s 72(1)(b).

10. FLA s 72(1)(c).

11. See DP 44 para 8.29-8.44.

12. NSW Law Reform Commission, Report on De Facto Relationships (Report 36, 1983) (“Report 36”) at para 8.26.

13. Report 36 at para 8.25.

14. See para 1.33.

15. See Family Court Act 1997 (WA) especially s 205ZC, 205ZD (which also applies to same sex relationships).

16. DP 44 at para 8.53-8.54 (Option 3).

17. Lesbian and Gay Solidarity, Submission at 4; Women’s Legal Resources Centre, Submission at 24-25; NSW Young Lawyers, Submission at 14; Law Society of NSW, Submission at 9.

18. P Parkinson, Submission at 7. See also Equity Division of the Supreme Court of NSW, Submission at 25; Gay and Lesbian Rights Lobby, Interim submission at 8 (both of the these submissions tending to favour the integrative approach that looks at factors traditionally relevant to maintenance in the context of propery adjustment orders).

19. Supresencia v Powell [2002] NSWSC 773 at para 40 (Acting Master Berecry) (no maintenance where the property adjustment enabled applicant to support herself through period of retraining).

20. For example, Cotley v Brial [2004] NSWSC 657.

21. See Thompson-Grandou v Grandou [2002] NSWSC 1013 at para 82 (Master McLaughlin).

22. See Recommendation 27.

23. See Recommendations 33, 34.

24. See especially B Fehlberg, “Spousal maintenance in Australia” (2004) 18 International Journal of Law, Policy and the Family 1 at 12-18.

25. See Equity Division of the Supreme Court of NSW, Submission at 25-6 (supporting an expansion of the PRA’s maintenance jurisdiction to such cases, provided there was evidence of “a substantial unmet need” to deal with such cases in the context of de facto relationships).

26. Best (1993) FLC ¶92-418 at 80,296 (Fogarty, Lindenmayer and McGovern JJ).

27. If there were such property, an order adjusting interests in it could involve lump sum or periodic payments: PRA s 38(1)(d) and (e).

28. See PRA s 35.

29. PRA s 36, 41. See further Chapter 11.

30. PRA s 28.

31. See Appendix C.

32. See J Behrens and B Smyth, Spousal Support In Australia: A Study Of Incidence And Attitudes (Australian Institute of Family Studies, Working Paper 16, 1999) at 15.

33. The study also found that maintenance typically lasts two years and averages about $128 a week, giving rise to the comment that maintenance is “rare, minimal and brief”: see Behrens and Smyth at vii, 21.

34. Behrens and Smyth at 21.

35. As reported in B Fehlberg, “Spousal maintenance in Australia” (2004) 18 International Journal of Law, Policy and the Family 1 at 28, notes 163-165, citing J Millbank, “Domestic rifts: who is using the Domestic Relationships Act 1994 (ACT)?” (2000) 14 Australian Family Law Journal 163.

36. See Chapters 14 and 15.

37. See Appendix C.

38. Sydney focus group (property); Lismore focus group (property).

39. See Appendix C.

40. Property Law Act 1974 (Qld) Pt 19. But the Queensland Law Reform Commission had recommended extensive maintenance provisions: see Queensland Law Reform Commission, De Facto Relationships (Report 44, 1993) at 69-94.

41. Property Law Act 1958 (Vic) Pt 9.

42. NSW Law Reform Commission, Report on De Facto Relationships (Report 36, 1983) at para 8.23.

43. See Domestic Relationships Act 1994 (ACT) s 19(1)(a); De Facto Relationships Act 1991 (NT) s 26(1)(a).

44. FLA s 72(1)(a).

45. NSW Commissioner for Children and Young People and National Children’s and Youth Law Centre, Submission at 6.

46. NSW Young Lawyers, Submission at 13.

47. See Appendix C.

48. Report 36 at para 8.24.

49. FLA s 72(1)(b).

50. Family Court Act 1997 (WA) s 295ZC(b).

51. Relationships Act 2003 (Tas) s 47(1)(a). But note s 47(1)(b) where “any other reason” may arise “in whole or in part from the circumstances of the personal relationship”.

52. See Domestic Relationships Act 1994 (ACT) s 19(1)(b); De Facto Relationships Act 1991 (NT) s 26(1)(b).

53. A variation of an example in Queensland Law Reform Commission, De Facto Relationships (Report 44, 1993) at 77.

54. FLA s 72(1)(c); Family Court Act 1997 (WA) s 205ZC(c).

55. Relationships Act 2003 (Tas) s 47(1)(b).

56. See Appendix C.

57. See Chapters 1, 8 and 9.

58. PRA s 19.

59. FLA s 81.

60. B Fehlberg, “Spousal maintenance in Australia” (2004) 18 International Journal of Law, Policy and the Family 1 at 20.

61. See Recommendation 27.

62. See Chapter 7.

63. PRA s 29.

64. PRA s 32.

65. De Facto Relationships Act 1991 (NT) s 30(1)(b).

66. Relationships Act 2003 (Tas) s 50(1)(c).

67. Relationships Act 2003 (Tas) s 50(1)(d).

68. Relationships Act 2003 (Tas) s 49.

69. Domestic Relationships Act 1994 (ACT) s 19(2).

70. Domestic Relationships Act 1994 (ACT) s 23(2). Compare PRA s 35.

71. DP 44 at para 8.13 (Issue 29).

72. Equity Division of the Supreme Court of NSW, Submission at 25; Women’s Legal Resources Centre, Submission at 24; NSW Young Lawyers, Submission at 13-14; Law Society of NSW, Submission at 9.

73. Report 36 at para 10.27, 10.28.

74. FLA s 72.

75. PRA s 32(1)(c).

76. FLA s 82(4).

77. Report 36 at para 8.37-8.40.

78. Family Law Amendment Act 1987 (Cth) s 39(c).

79. See s 75(2)(f), as originally enacted.

80. Family Law Amendment Act 1987 (Cth) s 39(b).

81. Commonwealth, Parliamentary Debates (Hansard) House of Representatives, 29 October 1987 at 1715.

82. See De Facto Relationships Act 1991 (NT) s 26(3); Relationships Act 2003 (Tas) s 47(3); Family Court Act 1997 (WA) s 205ZD(4). By contrast, s 19(3) of the Domestic Relationships Act 1994 (ACT) expressly preserves the entitlement of the applicant for maintenance to a pension, allowance, or benefit.

83. See Doig and Doig [1999] FLC 92-869 per Kay J at 86,292; P Parkinson and J Behrens, Australian Family Law in Context: Commentary and Materials (3rd ed, Lawbook Co, Sydney, 2004) at 590; B Fehlberg, “Spousal maintenance in Australia” (2004) 18 International Journal of Law, Policy and the Family 1 at 22.

84. Social Security Act 1991 (Cth) s 4(1) defines a “partner” in relation to a person who is a member of a couple, to mean the other member of the couple. Section 4(2) defines a member of a couple as either a member of a married couple, or as a person who has a relationship with a person of the opposite sex.





Previous Page | Back to Lawlink Home | Top of Page
  Last updated 22 April 2008   Crown Copyright ©  
Hosted by agd logo
Lawlink NSW