posted 27th September 2023
The Child Maintenance Service Explained
The Child Maintenance Service, formerly the CSA, handles child maintenance where separated parents cannot agree an arrangement between themselves.
The two routes
A family-based arrangement
The parents agree between themselves what is paid and when. No involvement from anyone official, and the arrangement can be shaped around the particular circumstances rather than following a formula.
This is usually the better route where the parents can manage it. It can also be recorded in a financial consent order as part of the wider settlement.
A CMS arrangement
Where the parents cannot agree, the CMS assesses the position and applies its formula. There is a charge for the service, and either parent can apply.
How the formula works
The calculation is based on:
- The paying parent's gross income
- The number of children
- The number of nights the children stay with the paying parent
The paying parent is the one without main day to day care. The receiving parent is the one with it.
You can check the figure yourself using the government calculator: CMS Calculator
The twelve month rule
This catches people out and it is worth understanding at the outset.
Where child maintenance is written into a court order, that order holds for twelve months. After that, either parent may apply to the CMS, and the formula takes over from whatever was agreed.
So an order that provides for more than the formula would give is not permanent protection. The parent receiving it should know that, and the parent paying it should know it works in the other direction too.
Enforcement
Where a paying parent defaults on a CMS arrangement, the CMS has powers including deductions from wages, deductions directly from bank accounts and ultimately court action.
A family-based arrangement has no such enforcement behind it unless it forms part of a court order.
Appeals
A parent who disagrees with a CMS assessment can ask for it to be looked at again, and then appeal, providing information that may affect the calculation.
Where this fits with a divorce settlement
Child maintenance can form part of the financial settlement rather than being handled separately. Agreeing it alongside everything else means one discussion rather than two, and one document rather than several.
Get in touch for a free initial consultation.
