posted 9th October 2023
Child Maintenance and Financial Consent Orders: What You Need to Know
Navigating the complexities of financial arrangements during and after a divorce or separation can be a daunting task, especially when children are involved. In England and Wales, child maintenance agreements and financial consent orders are two essential aspects of ensuring the financial well-being of children and the equitable division of assets between separating couples.
In this comprehensive guide, we will explore the relationship between child maintenance agreements and financial consent orders, explaining how they intersect and differ.
Child Maintenance Agreements:
Child maintenance refers to the financial support that one parent provides to the other for the upbringing of their child or children after a separation or divorce. The primary aim of child maintenance is to ensure that children's needs are met and they can maintain a similar standard of living to that which they enjoyed while their parents were together.
Child maintenance can be agreed upon voluntarily between the parents, often with the help of family mediators or legal professionals. Here are some key points to understand about child maintenance agreements:
1. Voluntary Agreements: Parents can agree on child maintenance arrangements privately, often with the help of family mediators or legal professionals. This agreement can take the form of a family-based arrangement.
2. Factors Considered: When establishing child maintenance, key factors include the paying parent's gross income, any overnight stays the child has with them and the number of children involved.
3. Enforcement: If a parent fails to pay child maintenance as ordered by the court, there are legal avenues available to enforce these payments.
Financial Consent Orders
A financial consent order is a legally binding agreement that outlines the financial arrangements between divorcing couples. It covers the division of assets, including property, savings, investments and pensions. While financial consent orders primarily deal with the division of assets, they can also incorporate child maintenance provisions if the parties wish.
1. Legal Protection: A financial consent order provides legal protection and finality to financial arrangements. Once approved by the court, it becomes legally binding and neither party can deviate from its terms without court approval.
2. Asset Division: The order outlines how assets and liabilities are to be divided between the parties, ensuring a fair and equitable distribution.
3. Flexibility: Financial consent orders are highly customizable, allowing couples to tailor the agreement to their unique circumstances and needs.
4. Court Approval: To obtain a financial consent order, both parties must voluntarily agree to the terms and submit the agreement to the court for approval. The court will review the agreement to ensure it is fair and reasonable.
Intersection and Differences
Now that we have a clear understanding of child maintenance agreements and financial consent orders, let's explore how they intersect and differ:
1. Inclusion of Child Maintenance:
• Child maintenance can be included in a financial consent order if both parties agree to it. This can provide the advantage of having a single, comprehensive document that covers both financial division and child maintenance.
2. Enforcement Mechanisms:
• Financial consent orders rely on the court's authority for enforcement.
3. Modification:
• Child maintenance agreements can be modified if there are significant changes in circumstances, such as a change in income. However, financial consent orders are generally less flexible once approved by the court.
4. Timing:
• Child maintenance agreements can be established at any time, even before or without divorce proceedings. In contrast, financial consent orders are part of divorce proceedings.
6. Complexity:
• Financial consent orders are more complex and comprehensive, covering all financial aspects of the separation, while child maintenance agreements focus solely on child support.
7. Cost:
• Child maintenance agreements through private arrangements do not usually involve legal fees, making them a more cost-effective option. In contrast, obtaining a financial consent order will involve costs.
Conclusion
Child maintenance agreements and financial consent orders serve distinct yet interconnected purposes in the context of divorce and separation. Child maintenance ensures that the financial needs of children are met, while financial consent orders address the equitable division of assets and financial responsibilities between the separating couple.
Understanding the differences and potential intersections between these two elements is crucial for anyone going through a divorce or separation. Seeking professional advice and mediation can help couples make informed decisions and create arrangements that are fair, sustainable and in the best interests of the children involved. Whether through a child maintenance agreement, a financial consent order, or a combination of both, the goal is to provide stability and security for all parties during a challenging time
