Are you aware of the changes in the law?
The Child Support Agency (CSA) has constantly frustrated parents with its delays in processing applications, the length of time it takes for changes in circumstances to be reflected in increased or reduced payments and the limited enforcement powers if the non-resident parent fails to pay their child maintenance. However, there are now new child maintenance rules that enable parents to either choose to enter into a private arrangement between themselves or to apply to the CSA for child maintenance. Previously, all parents claiming benefits were compelled to use the CSA.
The Child Maintenance and Enforcement Commission (CMEC) has been created and has assumed responsibility for the CSA. Their aim is to promote the financial responsibility that parents have for their children. In 2009/10 they will have new enforcement powers ensuring parents take responsibility for the financial support of their children. The powers include being able to deduct child maintenance debt direct from bank accounts; to apply to the courts for travel disqualification and curfews; and to recover debt from the estate of a deceased non-resident parent.
Under the new rules, in an effort to increase help to low income families the parent with the main day-to-day care of a child who is claiming benefits can now keep up to £20 per week of any child maintenance payments before it affects their benefits. It is intended that by 2010 child maintenance will not be taken into consideration at all when benefits are paid.
Entering into a private arrangement or applying to the CSA?
A private arrangement is an agreement between both parents for child maintenance without the need to involve the CSA. You can decide with the other parent the amount that should be paid, when the payments should be made and whether there should be any ‘payments in kind’ where one parent pays for school uniforms, holidays etc instead of just giving money to the other parent. Private Arrangements can be quicker and more flexible than if either of you applied to the CSA but in order to work will require both parents to work together.
A private arrangement is not legally binding and therefore you may wish to apply to the court for the agreement to be incorporated into what is known as a ‘consent order’ so that if the parent paying the maintenance fails to pay then the agreement is enforceable.
Alternatively, if you are unable to reach an agreement, there is a lack of trust between you or you simply do not want contact with the other parent either of you may apply to the CSA. The CSA will use a formula to calculate how much maintenance should be paid based on the income and other circumstances of the parent without the day to day care of the child. They decide when the payments should be made and are therefore not as flexible as a private arrangement.
If you would like us to help:
• negotiate child maintenance;
• negotiate spousal maintenance;
• incorporate a maintenance agreement in a court order or separation agreement;
• advise you in relation to the CSA;
• advise in all aspects of your divorce or separation.
then please contact our family department.
