Schedule 1 of the Children Act 1989 applications are for circumstances where a parent is seeking financial support from the other, for the benefit of a child. Such cases usually arise under circumstances where the parties are not married and it is an avenue that is often overlooked by unmarried couples who share children, often believing that they have no ability to seek financial provision to support children other than through the Child Maintenance Service.
Applications under Schedule 1 of the Children Act can be made by any person with parental responsibility, this may be the parents of the child but also includes guardians, special guardians and any person who the child lives with under a court order. Adult children can also potentially make an application themselves if they need financial support for education or under ‘special circumstances’.
What types of financial support can be granted/sought
The court has the authority to order various types of financial provision under Schedule 1 depending on the circumstances, this may include:
- Periodical payments – periodical payments would be made to the person with whom the child resides, however, such payments would only usually be sought under circumstances where the paying parent’s income exceeds the CMS threshold of £156,000 gross per annum. Periodical payments may also be sought where one of the parties or the child, resides outside the jurisdiction.
- Lump sum payments – lump sums would include payments for specific purposes in connection to the child or children, such as: educational, medical, provision of housing, or other significant needs.
- Transfer of property – the court can order the transfer of a property into the other person’s name for the benefit of the child. Ordinarily, this would only be a transfer for a limited period of time, after which the ownership of the property would usually revert to the original transferor.
- Trust funds – in some circumstances, a trust fund may be established to manage the child’s financial needs over the long term.
What is taken into account regarding Schedule 1 of the Children Act 1989?
There are various factors which the court may take into account when deciding whether or not any order should be made under Schedule 1. The primary concern of the court is to ensure that the children’s needs are sufficiently met. The court will therefore need to consider what the financial needs of the child are, what are the financial resources of the parties and what is the relevant standard of living. Additional support may also be required if a child has disabilities, and this is another factor that may need to be taken into account.
Applications under Schedule 1 of the Children Act are particularly complex, and it is important to seek suitable legal advice. At Stephens Scown we have a dedicated Family Law team to support and advise in cases where financial provision is needed for the benefit of a child.