Child Maintenance on significant monetary holdings.

hi,

there is a possibility of bitcoin being used in a CMS calculation. but I think that would only work if your ex is aware of it, and she requests CMS for a variation:

Receiving parents and paying parents can apply for an Asset Variation. Asset Variations that can be considered are:

• if the paying parent has assets worth more than £31,250 

• any money whether in cash or deposited
• gold, silver or platinum bullion bars and coins
• any virtual money (for example, bitcoin) which is capable of being exchanged for money
• stocks (can also be known as equities), shares and unit trusts
• gilt-edged securities (a bond issued by a government or company as a means of borrowing money)
• land rights
• property
• chose in action (a property right or the right to possession of something that can only be obtained or enforced through legal action)

https://www.nidirect.gov.uk/articles/other-financial-commitments-child-maintenance-cases

also CMS are currently in process of making changes, where they will be asking any trading and investment firms to give them information if a paying parent has used their platforms, and they will include this information when they calculate maintenance at annual review time.

@bill337 What would the maximum they could bleed from stagnant funds per week then?

hi,

if it gets to that stage, then they likely will take 8% of the value of asset and add that to maintenance calculation:

There was no clear consensus on the percentage rate we should use to derive a notional income or minimum value. We therefore opted to proceed with the 8% rate proposed in line with the Judgment Debts (rate of interest) Order 1993, and we will set the minimum value of £31,250.

https://www.legislation.gov.uk/uksi/2018/1279/pdfs/uksiem_20181279_en.pdf

I wonder if there will be an upper limit to that then? Surely they'd still have to take into account I wouldn't be working and would be dependent, long term on what funds I did have? Somehow I don't think they'd really care from what I've seen so far.

As I understand it, CM is generally by default based only on your income which as you say would be zero. However the PWC can apply for an asset variation whereby you can be assessed for CM on your assets. Also known as a 'notional income' variation. At the moment I believe this happens only if the PWC requests such a variation, at which point the CMS will ask you for details of your assets, however Bill337 seems to suggest that changes may be afoot for the CMS to gather asset information themselves so not sure how this process will change.

Have a look at chapter 34 in the variations document here :- https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1066233/volume-3-variations.pdf

Also a couple of other useful links :-

Chapter 5.2 here :- https://researchbriefings.files.parliament.uk/documents/CBP-7773/CBP-7773.pdf

Also https://www.legislation.gov.uk/uksi/2012/2677/regulation/69A

Basically, certain types of asset (as defined in the above links) can be assessed if they exceed £31,250 in value. If they do, 'notional income' is calculated at 8% of the asset value and this is added to your other assessable income and CM calculated thereon. Incidentally, I understand that the threshold value of £31,250 was chosen because 8% of this = £2,500, which is the same threshold for other types of unearned income to be included in the assessment (such as property income for example).

Each individual asset has to exceed the £31,250 threshold, so if you had £30k in an ISA and another £30k in a bank account, then neither qualifies and no notional income is calculated on these two assets.

It is far from water-tight and fair in some cases - in my case I have a property that I let out and which I have a mortgage on. Rather than pay down the mortgage directly I chose to have an interest only mortgage and invested money elsewhere in an ISA over time to accumulate and pay down the mortgage capital that way. Unfortunatelty I was assessed for CM on the notional income calculation on that ISA money, despite my explanation of what that money was for and pointing out that had I simply chosen a repayment mortgage instead of an interest-only mortgage then these funds wouldn't even have existed. This notional income was assessed for CM in addition to the income I received from letting the property out !

It’s my first funded company I started to work, actually I did my first 10k account and now I am waiting for my first withdraw. I am stock at the process, but [censored] was helpful in restoring my losses.

Hi I recently went through [censored] with my ex. After leaving her a raft of false allegtions and severance of Contcat for a year which tore my heart out not seeing my lad. Th awfully Judge saw through it and all allegations dismissed and I get my son 6/14 nights Nd 50.50 in hols. Paying CMS while spending a fortune on court too seems so unfair.

Anyway after fmaiky court we settled finances that she kept house and I kept some crypto assets just over the notional pay value threshold or extra income. As her CMS payemnts have reduced dramatically after me getting 6/14 nights and 50.50 in holidays she has now applied for a notional unearned income check. I have declared some crypto and eve  though it is aligned with her agreed financial disclosure forms, now she has house she wants more.  She has  ot accepted the small increase on cms so wants to go to tribunal.  Question is for anyone who has been to tribunal, how far will they look back at crypto transcations.  Some are from 2018 on exchanges that don't even exist so will the tribunal demand 7 yrs of accounts bank statements etc or will they go off what I showed cms. It's just never ending.  2 yrs in court trying to see son, then 1 Yr Iver finances now tribunal also with CMS.  ANY ADVICE on waht to expect with tribunal and level of detail they'll demand or are entitled too. They have all my Ltd company stuff from accountant.  Thanks for help