How Below Zero Inflation May Affect Divorce Maintenance

The UK inflation rate (the official CPI measure) has officially dropped below zero for the first time since 1960. This might make things a bit easier on the pocket for most people but what about maintenance payments?

If you have recently received a court order on maintenance it may be time to take a much closer look at the small print. With negative inflation in the UK now a reality, albeit a temporary one, people who have gone through divorces may be receiving maintenance payments that are index linked.

This wouldn’t have been an issue prior to Britain’s fall into negative inflation as it would mean that the value of money paid would remain constant and in line with The Government’s main inflationary measure.

It is also unlikely to be an issue for existing payments but if there is something in the court order that relates to ‘variation by the rate of CPI’ then this needs to be looked at for two reasons. The payer will pay less and the person receiving maintenance will lose out on what they should be entitled to.

According to The Chancellor the dip into negative inflation is only likely to be temporary lasting perhaps a few months before it begins to rise into positive territory again.