Financial provision under Schedule 1 of the Children Act

If you have children and your relationship breaks down, then you may have concerns about how you can afford to provide for your children as a single parent, particularly if your ex-spouse or former partner was the main breadwinner. It is natural to want to minimise disruption for the children, but this may be difficult to finance without the cooperation of the other partner.

Fortunately, the law provides you with a framework to secure financial provision for your children under Schedule 1 of the Children Act which focuses specifically on your child’s welfare.

‘If you have been unable to agree a financial settlement to provide for your children and there is a disparity in your respective wealth, your solicitor may suggest making a claim under Schedule 1 to help secure crucial financial support for your child’s upbringing, education, and future,’ says Connor Williams in the family team with Borneo Martell Turner Coulston ‘The rules apply, whether you were married or in a civil partnership, or living together. It is the welfare of the child which is prioritised by the court.’

Connor Williams provides a brief overview of Schedule 1 of the Children Act and key considerations.

How can Schedule 1 help an unmarried parent?
As an unmarried parent, it is not possible to secure any legal financial provision for your children using the divorce framework.
However, if you will be your children’s primary carer after your relationship has broken down, you will be in the same position as a married person going through divorce, and you will need to ensure your children’s financial needs will be met.

Under Schedule 1, your solicitor will be able to make a claim in the court for financial support to cover things such as:
– child maintenance payments
– one-off lump-sum payments; for things such as education costs, medical expenses and school trips
– property; this can involve getting an order that says you and your child can live in a property owned by the other parent until they are an adult.

How can Schedule 1 help a parent who is divorcing or dissolving a civil partnership?
Although provision for your child would normally be agreed as part of the financial settlement achieved during your divorce or dissolution, your solicitor may suggest making a claim under Schedule 1 when the financial provisions available through divorce proceedings are insufficient to meet your child’s specific needs.

How does the court deal with a Schedule 1 application?
The court applies strict criteria when considering an application and the child’s welfare remains the paramount consideration. When applying the criteria to your application, a judge will look at factors including:
– the financial resources of both parents. If you can comfortably afford to house your child in a suitable home, you might find it hard to persuade the court to order the other parent to pay for this. However, it would make absolute sense to make an application if you are on a comparatively lower income and the other parent is a very high earner.
– your child’s standard of living. The court will look at your child’s upbringing to date and what sort of homes, clothes, hobbies, holidays and schools they have been accustomed to. If they have enjoyed an affluent lifestyle paid for by the other parent and the other parent can afford to maintain that for your child, the court will try to achieve this.

How long do these court orders last for?
A Schedule 1 court order will generally last until your child is 18 years old, at which point any provisions made will come to an end. It is important to remember this and that orders are made for the benefit of your child, not you. This means that any regular payments will cease, and occupation of any property will have to end.

Holding funds: you can set aside the entitlement for the missing beneficiary in an executors’ account. If the beneficiary is then located in the future, they can claim their inheritance.

Paying other beneficiaries: alternatively, you can distribute the amount due to the missing beneficiary to the other beneficiaries, subject to a legally binding commitment that if the missing beneficiary emerges later, the other beneficiaries will repay the amount.

Missing beneficiary insurance: this is a type of insurance which provides coverage for you if a missing beneficiary comes forward after the estate has been distributed.

The court: for maximum protection, you can seek court intervention. The court may issue what is called a ‘Benjamin Order’ which allows you to distribute the estate on the assumption that the missing beneficiary has died.

How can we help?
Whether you are thinking of breaking up with your partner or are already in the process of resolving finances after the end of your relationship, we can provide expert advice and guidance on how best to safeguard your children’s financial needs.

For further information, please contact Connor Williams in the family law team on: 01604 622101 or email connor.williams@bmtclw.co.uk

Borneo Martell Turner Coulston has offices in both Northampton and Kettering.