[Solved] Calculating Maintenance on Assets vs Income

Oh, yes, definitely - assets over £65000 are taken into account - speak to the CSA, you may be sent a variation form.

According to the new Maintenance Options lot, they think (They don't know?!) they can calculate a Maintenance value using the interest, dividends & proceeds of sale from her investments even if reinvested & add that to her earned income to calculate the std rates of maintenance from? But they are not sure? wt-[censored]?

So if i am to organize a family arrangement how am I supposed to calculate that?

Hi,

Open a case with CMS and let them calculate it?

That way you get the figure that would have to be collected and you can choose whether to pay direct or have the CMS collect. They are going to start charging soon for this though.

Regards,

Dave

can they amend a calculation based on the fact that my ex is now engaged to another guy, and they have 2 children of their own and they both work? - when we split she wasnt working. should they take into account the true need for money as opposed to the regimented "you have one child so you must pay x pounds"

Its regimented X% for X children I understand.
I dont think how much assests or income matters to the CMS.

Dave

@ biomarvel - no they don't take the other partners income or kids into account you pay X% vs Y kids regardless. If that means they have more to live on that is not taken into account. You could be in the same situation with a partner & their kids too.

Re - assets - if a non resident partner has assets (Shares, ISA's, investments, other property) then if its worth more than 65k then they assume a notional income from it at 8% (regardless of how well the investments have actually done) & that is added to PAYE or earned income & the maintenance calculation is made in the normal way. So someone with 100k is assumed to have derived 8k from & that is added earned income.

The Gov want to change that so actual income (interest dividends profit on sale etc) less costs (dealer fees, stamp duty losses from sales etc) is used.

So in a recession kids loose CM because shares may not earn or indeed fall in value? Market forces dictates children's welfare?

& people with significant sums will employ creative accountants to avoid liability wont they!

At the moment, the variation process can be used for a diversion of income - if that continues, then the creative accounting might be less fruitful - depends on how well the money is hidden.

Actd - Do you know if a diversion or variation can be used on assets like shares held in ISA's or tax efficient schemes. the blurb seems to suggest they are taken into account but its not at all clear.

Ah, my knowledge of the assets variation isn't that detailed (mostly it comes from my experience of using the variation system, and my ex didn't have assets of any value) - my gut feeling is that it would be taken into account unless it was tied up with a pension, but again, if it looks like you've done this purely to avoid paying maintenance, then they may still include it.

Hi Hitchphil

Thanks for your post. I am William the Child Maintenance Options consultant. Here at Child Maintenance Options we provide free impartial information and support to parents and anyone else with an interest in child maintenance. We are different to the Child Support Agency (CSA) because we do not put maintenance in place and we are unable to answer and specific questions regarding their service. We are here to help parents make choices about child maintenance.

Information about what factors the CSA take into account when working out child maintenance can be found on their website at http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@benefits/documents/digitalasset/dg_198849.pdf.

To find out more about how Child Maintenance Options can help you visit cmoptions.org or call us free on 0800 988 0988 between 8am and 8pm Monday to Friday or 9am and 4pm on Saturday.

Thanks
William