Guides & Advice. 12 Months On

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1 Guides & Advice 12 Months On

2 12 Months On A guide to maintenance payments Annual maintenance payment increases It is often agreed/ordered that maintenance payments should increase every year in order to provide a degree of inflation proofing and to avoid the need for repeated variation applications to the Court. You will need to check your Court Order to find out in which month any increase is to take effect usually 12 months from the date of the Order, but sometimes sooner if the figure was agreed a while before the Order was made. Increases are usually calculated in one of two ways: In line with either the Retail Prices Index (RPI) or the Consumer Prices Index (CPI) On this basis the change in the payments follows the change in the RPI or CPI figures between two dates. Orders are often drafted on the basis that the relevant figures are those for the month 3 months prior to the increase and those for the month 12 months prior to that (this is to allow for delays in the publication of the figures). 12 Months On - A guide to maintenance payments Sometimes a change in the payments only happens if there has been an increase in the figures, but sometimes the Order allows for a reduction in payments if there has been negative inflation This is the formula which you will need to carry out the calculation. X x A/B Where: X is the figure to be inflated A is the RPI for the later month B is the RPI for the earlier month Excellence Integrity Approachability

3 For example the increase in maintenance payments of 100 per month which are to be increased in June 2011 with reference to the figures for March 2010 and March 2011 would be as follows Old payment ( 100) x March 2011 RPI figure (232.5)/March 2010 figure (220.7) = So the new payments would be RPI monthly data can be found on the National statistics website at In line with changes in the payer s net income On this basis you would need to ask the payer for the required evidence of his/her net income. There should be provision in the order for this to be provided and the order should stipulate what is required eg payslips, P60s, accounts, tax returns, etc. Variation of Spousal Maintenance Orders If you or the other party have experienced any significant change in circumstances, for example been made redundant, developed a disability, commenced cohabitation, obtained a promotion at work and/or had a significant pay increase, etc it might be open to you to make an application to increase or decrease the payments. On such an application, the court would exercise its broad discretion and consider all the circumstances of the case. You would need clear evidence of any change in circumstance. An application to vary an existing order is made in much the same way as the original application for financial provision. If you think you might have grounds for seeking a change in the payments received/ made, we recommend that you consult as soon as possible. Excellence Integrity Approachability

4 Any arrears If maintenance payments under a court order have fallen into arrears, this is a breach of the order and you can seek to enforce the arrears. If you want to enforce arrears which are over 12 months old, you need permission of the Court, so it is important not to delay taking action. If you are receiving child maintenance pursuant to a Child Support Agency assessment, you need to contact the Agency direct as it has extensive powers of enforcement, including fines and disqualification from driving etc. Child Maintenance Once a Court Order for child maintenance has been in force for more than a year, either party is free to make an application to the Child Support Agency for an assessment. Any assessment will take priority over the original order for child maintenance which will be discharged. You will need to consider the likely effect of a CSA assessment. Once the CSA carries out an assessment, the Courts would no longer have jurisdiction to make a child maintenance order, except in very limited circumstances. There are pros and cons of applying to the CSA which we can discuss with you as necessary. You can download the form for a CSA assessment from the CSA website or telephone them. The CSA aims to contact the other parent with a child maintenance enquiry form within 4 weeks of an application. Have you made/revised your Will? Following separation or divorce, it is important to review your Will or, if you do not already have one, to take this opportunity to make one. If you have not yet done this, now is a good time to consider it. If you have remarried it is particularly important to make a new Will, as marriage revokes any existing Will. Similarly, if you are now cohabiting, you might want to make provision for them, as they might not get anything if you were you to die intestate. We recommend that you contact Caroline Casagranda on or at caroline.casagranda@blandy.co.uk who can arrange for you to speak with a member of our Probate, Tax and Trusts team.

5 General Financial Review Do you need advice on the best pension to invest in? If you had to share part of your pension as part of the settlement, you may need advice on how best to replace the pension provision you have lost. You might want to consider other financial planning, such as protecting the family in the event of death or serious disability, investment for the future, school fees provision, planning for retirement and beyond etc. Protection of maintenance payments can be crucial. Our Financial Services team would be happy to discuss the above with you and offer to give you independent advice. Please contact Phillip Hasell: or Blandy & Blandy LLP does not assume legal responsibility for the accuracy of any particular statement contained in this guide. In the case of specific problems we recommend that professional advice be sought. Contact us If you would like to discuss your situation, please contact Andrew Don, Head of Family department. T: E: W: February 2014

6 Blandy & Blandy LLP is authorised and regulated by the Solicitors Regulation Authority and authorised and regulated by the Financial Conduct Authority. It is incorporated as a limited liability partnership under number OC and its registered office is at One Friar Street Reading Berkshire RG1 1DA. A list of Members may be inspected at our Registered Office. Partner denotes a Member or a senior Employee of Blandy & Blandy LLP.