A significant concern for separating parties with children is often ensuring they are financially secure and can meet their children’s expenses.
What is child maintenance?
Child maintenance refers to a sum payable by the parent who does not live with the children to cover some of their expenses. The parent who receives the maintenance payments is considered the ‘resident parent’; this is the parent who cares for the children most of the time.
It is important to note that child maintenance is payable even if the non-resident parent does not spend any time with their children.
How is child maintenance calculated?
The sum of child maintenance can be agreed directly between parents. There is also a government appointed agency known as the Child Maintenance Service (CMS) who deal with these matters. This body was set up to apply a simplistic formula for calculating payments. It was designed to allow parties to use the formula and agree payments between them wherever possible. However, if parents cannot agree the payments, they can apply to the CMS for an assessment.
The CMS has the power to calculate payments in relation to children who are under the age of 16, or a child who is between the age of 16 and 20 years old, providing that they have not been married or in a civil partnership and they are in full-time non-advanced education.
When doesn’t the CMS have the power to calculate payments?
Some examples include:
- Families living outside of the jurisdiction
- Children at university: the child typically falls outside of the power of the CMS on the 31 August following the completion of their A-levels
- Payments towards step-children
- If the parents divide the care of the children exactly equally
- If there is an order for child maintenance within a Court Order that was made less than 12 months ago
- If the parents are still living together
If the non-resident parent’s income is more than £156,000 gross per year, then you can apply to the court for additional maintenance.
What income is included in the assessment?
Earned income from employment and self-employment, including dividends and income
from property, as well as taxable benefits are all included. However, there are some deductions to include pension contributions that are being made or if the non-resident parent has other children living in their household and if the non-resident parent spends more than 52 nights caring for the children there is a reduction, which goes up in incremental stages up to 175 nights or more.
Do I have to pay child maintenance?
Child maintenance payments are mandatory. If there are problems with payments being received, then the CMS can set up the payment system. However, this is far from ideal because the party receiving the payments receives a deduction and the paying party is charged a 20% handling fee for being in the Pay & Collect Scheme.
Arrears of child maintenance starts to accumulate from the date of the first assessment. Unpaid maintenance can be recovered by the CMS. They can take action by:
- Instructing bailiffs to attend the non-payers property
- Freezing their bank/ building account
- Requesting that the Land Registry place a Charging Order against their property
- Forcing a sale of a property/assets to recover the amount due
The CMS also has further powers which include applying to the court to cancel the non-payer’s driving licence and UK passport, and it can even apply for a prison sentence of up to six weeks.
There is no doubt that the issue of child maintenance can become very complicated. If we can assist you in addressing any concerns that you have, then please contact E J Coombs Solicitors on 01883 343460 or via our website.
