The Schedule 1 to the Children Act 1989 enables financial orders to be made for the benefit of children. Such financial orders tend to be reserved for a parent not married to their partner, leaving them unable to seek a financial remedy following a separation under the 1973 Matrimonial Causes Act.
Schedule 1 applications are traditionally regarded as the domain of the ‘super-rich.’ Why? Well most case law that has been reported concerning Schedule 1 to the Children Act 1989 financial orders has predominantly been on ‘big money’ cases. Such cases are often pursued when the paying parent is deemed to be ‘super-rich’.
However, Schedule 1 to the Children Act 1989 should not be considered ‘discriminatory’. It is available to any parent who has a child and requires financial support to meet the needs of their children. It’s not an area of law limited to the super-rich.
What financial orders are available under the Schedule 1 to the Children Act 1989?
There are different types of financial order available under Schedule 1 to the Children Act 1989.
#1 – Child Periodical Payments (PP Order)
Only when the Child Maintenance Service (CMS) has carried out a ‘maximum assessment’ can a PP ‘top order’ be made against a parent.
The non-resident parent must have a gross weekly income exceeding £3,000 per week (£156,000 per year) and the Court must be satisfied that the circumstances of your case make it appropriate for the person paying to pay additional monies outside the CMS assessment.
If you feel that your former partner earns enough to place them in the jurisdiction of the top up, and there is no CMS assessment in place, you will need to successfully challenge a CMS tribunal prior to making an application for a top up under Schedule 1 to the Children Act 1989.
A PP ‘top up order’ can also be made to cover the cost of a child’s education or expenses in relation to a child’s disability. Such an order can also be varied – backdated to the date of your application – or discharged upon the variation. The Court can also issue an order for a lump sum to be paid.
A ‘top up’ order is typically valid up until a child’s 18th birthday or when a child finishes full-time education – up to university, but it is possible to extend the order into a gap year.
The order will end if the parent making payments dies, if parents live together for a period of six months, or a maintenance calculation is subsequently made by the CMS.
#2 – Settlement of a Property Order
A Settlement of Property Order is a claim made against a parent on behalf of a child for a sum of money in order to purchase a property, which reverts to the paying parent on a child’s 18th birthday or when a child finishes higher education – including university.
If you apply for a Settlement of Property Order under the Schedule 1 to the Children Act 1989, it’s possible for you to purchase the property at market value at the end of the Order’s term.
#3 – Lump Sum
A lump sum claim can be made against a parent that will enable you, as the applicant, to meet any liabilities or expenses incurred in connection with the birth of your children or maintaining your children.
A claim for a lump sum against the so-called super-rich parent tends to cover the cost of single items of a capital nature, including:
- A home
- The cost of moving to a new house
- Furnishing a property
- Buying a car
The Court has a wide discretion, and its possible to apply for a lump sum for more specific purposes, such as covering a debt, property repairs or even a holiday.
What will the Court consider when dealing with financial orders under Schedule 1 to the Children Act 1989?
The Court will consider several factors for Schedule 1 to the Children Act 1989 applications.
The Court will weigh up several factors when considering such applications including, but not limited to:
- The financial resources available to both parents
- Any other responsibilities that the parents may have, such as their responsibility towards any other children
- Any disabilities of the subject child
- The financial requirements of the child
- The original intentions of the parents in relation to how the child would be raised to include matters such as private education
In order to make a decision, the Court will expect both parties to fully disclose their financial resources.
No longer just for the super-rich
Schedule 1 of the Children Act 1989 is no longer just for the super-rich.
With it becoming more common for people to enter into a relationship without marrying, cohabiting and having children outside of marriage, Schedule 1 of the Children Act 1989 is no longer just for the super-rich. It is a useful, legal resource for unmarried parents who separate to ensure that the welfare of a child and their financial needs are met.
