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Shared Residency, Child Maintnenance &Tax Credits

  • caitriona
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11 Dec 13 #415878 by caitriona
Topic started by caitriona
My STBX has decided to pursue Shared Residency. It is his belief that if he had the children 50% of the time that he would not be liable for any child maintenance. Does anyone know if this is correct? (He earns a lot more than me since i stepped off the same rung of the same career as his to look after our children when they were born and although back at work, I do not have parity). Also, if i only have my children 50% of the time i imagine that i would lose all, if not a considerable portion, of my Tax Credits. The combined loss means that i could very likely lose my home. This is all very worrying even though deep down i know that a judge would be very unlikely to award this - he is away from home for weeks/months at a time for work and has yet to explain to me how SR would work then, and even when he is at home he works nights and has suggested our children stay with his girlfriend with whom he is soon moving in. This is a money saving exercise for him rather than a genuine belief that it would be better for the children. However i would prefer to have some facts and try and wake him up to them now rather than waste time and money that we do not have in court. If anyone can shed any light i would be so grateful. I cannot bare the thought of my children living away from me 50% of the time - what''s the point of anything then? And especially if they are not even going to be with their father.
Thank you so much - in a dark place today with it all.
Cat x

  • WYSPECIAL
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11 Dec 13 #415890 by WYSPECIAL
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With 50/50 shared residence it is correct that there wouldn''t be any liability through the CMS but it doesn''t mean spousal maintenance isn''t possible if he earns a lot more than you.

Tax credits are completely separate. Only one of you can claim but you can decide who. if the amount he got was zero and you not claiming meant you needed more spousal maintenance then he may prefer you to be the claimant.

post more details on income, assets ages etc for someone to help.

If he is looking for 50/50 shared residency it will be up to him to demonstrate how it will work which from what you are saying would be difficult for him to do.

  • u6c00
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11 Dec 13 #415903 by u6c00
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Just to add to WYSPECIAL''s post, tax credits are not reduced pro rata depending on how long you have the children for.

Whichever parent receives the child benefit will be entitled to claim tax credits, and that parent will receive 100% of their entitlement, even if they have the children 50% of the time.

  • caitriona
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16 Dec 13 #416244 by caitriona
Reply from caitriona
Thank-you to both of you for taking the time to respond to me with generosity - and i apologise for not thanking you sooner. I nose-dived this weekend with the worry and the sadness of it all but now you remind me i am not alone - and armed with this information i feel like i am armed to go on. Thank-you x Cat

  • Poppy P
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16 Dec 13 #416246 by Poppy P
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Hi Cat
Try not to panic. I know it''s difficult. 6 years ago my ex applied for joint resedency. The judge told him he was wasting his time taking this further. The status quo was set. I wasn''t working full time and could take the children to school and collect. He works from 7-7 and would have to rely on childminders. SR doesn''t necessarily mean 50/50.
Also if you are in receipt of child benefit then you can claim tax credits. If you are working then WTC may be an option. Feel free to PM me.
Good wishes to you
Poppy x

  • Child Maintenance Options
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19 Dec 13 #416553 by Child Maintenance Options
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Hi Caitriona

Thank you for your post, I am William the Child Maintenance Options consultant. The Child Maintenance Service takes shared care into account in different ways depending on the paying parent’s child maintenance rate. Shared care applies if the paying parent provides overnight care for at least 52 nights per year before a liability will be reduced. This is based on the agreement with the receiving parent and or evidence. Shared care is usually determined over a twelve month basis, but shorter periods can be considered in appropriate cases.

The paying parent’s weekly amount of child maintenance is divided between the number of children that qualify for child maintenance

Shared care is then taken into account, based on the number of nights of shared care for each child. The amount of child maintenance to be paid is then reduced by up to 50 per cent plus a further £7 reduction, depending on the number of nights, as long as this is for more than 175 days or more a year.

The reductions for Basic and Basic plus rates are:

1 night per week = amount reduced by 1/7
2 nights per week = amount reduced by 2/7
3 nights per week = amount reduced by 3/7
175 nights or more = amount reduced by half and then minus a further £7.00 per child

A paying parent will usually have to pay at least £7 a week in child maintenance after shared care has been taken into account. However, if their child maintenance is set at Flat rate because the paying parent receives an income-related benefit, allowance or entitlement, then shared care for 52 nights or more a year will reduce child maintenance to £0 for that child. The paying parent also does not have to pay child maintenance for any other qualifying children who live in the same household as that child with shared care.

If child maintenance is set at Flat rate because the paying parent’s income is £100 a week or less, the Child Maintenance Service does not take shared care into account at all. This means the amount of child maintenance will not change.

This is only based on the number of nights a child stays with the paying parent and assumes that the receiving parent still carries out most of the day-to-day care.

If the paying parent can prove that they carry out an equal amount of day-to-day care as well as having equal shared care then the Child Maintenance Service regards neither parent to be the paying parent so their child maintenance would be set as nil, even if one parent receives child benefits or tax credits as the child’s parent. Where there is equal day to day care, and there is no paying parent means that there cannot be a statutory case and the Child maintenance Service would not being able to process the application as there is no identifiable paying parent.

If a paying parent has more than one qualifying child and does not provide the same amount of care for all the qualifying children, liability will be worked out by adding a reduction for each child and dividing the result by the total number of qualifying children. For clarification and further information on the above, you may wish to speak to the Child Maintenance Service directly. Their contact details can be found at www.gov.uk/child-support-agency

In your post you have mentioned the reduction in the tax credits that you may receive, if you have any concerns regarding this you may wish to speak to HM Revenue and Customs (HMRC) to discuss this further. Their contact details can be found at www.hmrc.gov.uk

If you have any concerns in regards to your housing situation you may wish to contact Local authority housing. You can find further information regarding this at www.gov.uk and search term ''Housing''.

We have a sorting out separation web-app that you may find useful, it offers help and support to separated families. You can find this at www.wikivorce.com/divorce/Sorting-Out-Separation.html

If you would a confidential chat with Child Maintenance Options team or find out more about all the options available for child maintenance, you can call us free on 0800 988 0988 between 8am and 8pm Monday to Friday or 9am and 4pm on Saturday, alternatively you can visit our website at www.cmoptions.org

William

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