Legal Arrangements for Children

A. Principles Which Deal With The Division Of Assets On Separation

The Child Support Agency (CSA) formula applies, regardless of whether a couple are married not. An absent parent must pay a percentage of his net income, the level of which varies depending upon the number of dependent children. Net income is usually calculated by reference to the salary, less tax, national insurance and pension contributions.

The formula is as follows:-

• One dependent child – 15% of net income
• Two dependent children – 20% of net income
• Three dependent children or more – 25% of net income

For each night that the children stay with the absent parent each week, the figure is reduced by one seventh. The maximum relevant net income which can be taken into account by the Child Support Agency is £104,000 per annum. For high-earning absent parents whose income far exceeds £104,000 net per annum, it may be possible to apply to the court for a “top up” order.

The court does not have the power to order payment of maintenance to a former cohabitee themselves. In America the concept is known as “palimony” but does not exist in England.

By contrast, a dependent spouse (usually the wife) may be entitled to spousal maintenance on divorce in addition to child maintenance calculated in accordance with the CSA formula.

The starting point is that a wife may be entitled to maintenance for herself during joint lives, until her remarriage or further order of the court. Whether or not a spousal maintenance order will be made depends upon various circumstances including the following:

• The ages of the husband and the wife and the length of the marriage
• Whether the wife is working. If she is in receipt of an income, whether there is a large disparity between her income and her husband’s income and whether she has a large earning capacity
• Whether there are young children of the family and whether childcare issues will have an impact upon a wife’s earning capacity
• Where there are sufficient capital sums available, a wife’s claim to maintenance may be bought out by way of a lump sum and therefore a clean break settlement achieved.

Call 0870 164 2372 now for a consultation with a Pannone Family Law Solicitor or Lawyer.