For a divorcing couple, the lockdown measures imposed as a result of the Coronavirus pandemic bring a large number of challenges. Considerations over arrangements for children, changes in asset values and the practical steps of formalising a separation have to be managed. This is along with lots of other concerns, such as ensuring everyone in the family is safe, homeschooling and changes in work and income arrangements.
We act for many clients who, prior to the lockdown, had working maintenance arrangements in place that were functioning well in the background to the discussions and negotiations they were having around splitting assets and achieving settlement in the long term. Many of those couples have seen those interim maintenance arrangements fall apart as a result of the pandemic and the changes that have been forced upon them.
How should a couple approach child maintenance during the coronavirus lockdown?
Broadly speaking, the same principles that ought to have applied in calculating their maintenance arrangements first time around should apply again now.
First and foremost, they need to ensure that the needs of any minor children can be met. This might be dealt with in part through a child maintenance arrangement, which is usually calculated in line with the guidance and calculator on the child maintenance service website. It is relatively straightforward to go through and should provide a good starting point to try and agree the level of child maintenance.
If, even allowing for the payment of child maintenance, the person in receipt of that payment is still faced with a deficit of outgoings over income, it may demand a closer look at each of the regular outgoings and the extent to which they can be mitigated. For example, mortgage holidays might be requested from lenders or other short-term arrangements may be put in place.
The next step will be to look at the extent to which the person seeking the maintenance is maximising their income during this difficult time. Of course, the demands of homeschooling and homeworking means that for many there may be little more that can be done to improve their income position.
To the extent there is a deficit of outgoings over income, even allowing for the child maintenance and income received from all other sources (to include child benefit and tax credits if available) that may be the amount sought from the other party. Of course, the payer does him or herself need to have the surplus income available to meet that deficit. If they do not then there are ways of apportioning the overall deficit between the couple.
The arrangement that is put in place may depend on a number of figures that are likely to change from month to month, to include outgoings and income levels. It may help the couple to be open to the need to review this on an ongoing basis, at least whilst the lockdown measure gradually lifts and there is a slow return to normality.
If the couple are unable to agree on the appropriate level of interim maintenance that should be paid then we are very happy to advise one of them on how any impasse might be overcome and how best to set up their agreement. Our team are fully set up to work remotely and on hand to help is needed. Please get in touch for advice.