A child remains the financial responsibility of both parents – whether they are married or divorced, cohabiting or separated – until he or she attains the age of 16 or, if he or she remains in full time secondary education, the age of 19. 

Child maintenance

Child maintenance is regular financial support, payable by the “non resident parent” to assist with the child’s day to day living expenses. Parents who are separating or divorcing can agree an appropriate level of maintenance between them and this sort of voluntary arrangement can be endorsed by the court (although it does not have to be, and if endorsed it will only be binding for one year). However, not all parents are able to reach agreement, and for such parents the government scheme for child support, currently run by the Child Support Agency (“CSA”) but being taken over by the Child Maintenance and Enforcement Commission (“CMEC”), provides a means of obtaining or paying child maintenance. Under the current scheme a non-resident parent is required to pay the appropriate percentage (15% for one child, 20% for two children or 25% for three or more children) of his or her income net of income tax, NICs and pension contributions – up to a maximum of £26,000 per year. Under the new scheme expected to come into force in 2011, the assessment of the non-resident parent’s income will be based on gross income, with a corresponding shift in the applicable percentages, to 12%, 16% and 19% respectively. The standard formula amount may be reduced in certain circumstances, for instance if parents share care of the child and the child stays with the non-resident parent for 52 nights a year or more, or if the non-resident parent has a second family to support. 

In some cases where the net income of the non-resident parent is greater than £2,000 per week (£104,000 per year) the court has jurisdiction to make a “topping up order”, which it can impose on the non-resident parent. Other than topping up claims, the court retains jurisdiction to order a parent to pay child maintennance only in a limited range of cases (with respect to a step-child in certain circumstances; where one of the parents or the child is habitually resident overseas; where the child is in private education; where the child is over the relevant child support ages; and where there are expenses relating to a child’s disability). 

We offer practical advice on how child maintenance payments should be structured.

Lump sum payments for the benefit of the children

The courts have the power to order a parent to make a lump sum payment, or to transfer or settle property for the benefit of a child.  This power cannot be used to provide for the child’s income needs however, and as it is unusual for a child to require capital, the power is invoked rarely. 

In the case of divorcing couples or civil partners who separate, the financial settlement on divorce (or dissolution of the partnership) will take account of the children and put their needs (including housing needs) first.

In the case of children whose parents are not married or in a civil partnership, the court will sometimes intervene to ensure that there is adequate housing for the children and that the parent with care has enough funds to fulfil their role as carer.  However, the non-resident parent has no financial obligation towards the resident parent.  Thus, for instance, where a property is settled for the benefit of the children, it will usually be settled only until the children have all attained the age of 18, then revert to the non-resident parent.