CSA calculation and joint debts and child benefit

kst101

H and I separated 6 weeks ago and have arranged maintenance privately. I am happy with the amount he is paying but am worried that I am taking too much.

We have joint IVAs or at least there is one IVA which is in both our names. At the moment H is paying for it in full (it has been in place since February 2010 so a while to go yet). If we were to go through the CSA would these payments be taken into account? I'm not entirely sure how the IVA payments should be split in such a case - would they be based on my earned income or rhe benefits as well. I think I'm concerned I seem to be financially better off than H although it was his choice to move out and to a house costing nearly as much as this one to rent....

Also with child benefit should I give part of this to him? He has the children regularly an average of 2 nights a week although has been more recently as I have been away for work. Should 2/7 of it be his?

Thanks for any knowledge on this

AnxiousMum

If the outstanding debts were to pay for household stuff during your time together, you might want to suggest that you pay your share - only fair really? Just as when you were together, you each contributed to the house financially, and you each would've contributed a share of your income (even if pooled together and paid out of one account) you could suggest that you each still pay proportionate share of the outstanding family bills. IE: if he earns twice as much as you - then he pays 2/3, you pay 1/3. Keep it totally separate from maintenance though. Ensure that maintenance is still paid as 'child maintenance' each week/month etc., as if necessary at any point, it shows that he has paid proper maintenance throughout.
As child maintenance is based on the ex's income - stick with the amount that you have agreed, if there's extra left over than what you need each month, tuck it away in a savings account, possibly in your child's name due to IVA's, and then when the child's expenses grow as they get older, you'll have the money put aside. You may think that the child maintenance is alot, but remember, they get more expensive as they get older, yet the percentage of income/child support remains the same. Just as in a family, with child support, you have to plan ahead for your child's needs.

Blob

To answer your question the CSA won't give a dam about the IVA they will go for the amount that think that they are allowed to. In the event that it leaves your ex on the street, so be it they don't care, as one told me 'We don't care what happens to you!'

In the event that your ex can't meet the payment on the IVA I am guessing that it will be bankruptcy, in that event then the house will go if his name is on the deeds, and it is too late to try to change that now as the Official Receiver can go back in time and get things changed. They have the power the CSA wish that it had and believes it has!

I feel sorry for the situation that you are in but that won't change a thing, if you go to the CSA and they act in their normal way then you will in all probability end up on the street as well, as again that will not come into their way of thinking, they have got the money that they wanted and the children are suffering as a result! Hell of a system really.

Best of luck, and sorry that it is not more positive.

kst101

Thanks for both the replies

As we moved after the IVA started (when we did own our house) the house the children and I live in now is rented as well, so at least there are no houses to lose.

I have recently had my housing benefit award which is more than I anticipated which is good. When H and I were going through the finances before he left we had discussed how much he would give me which working on the amounts in the CSA calculations is slightly more than I think CSA would say he should give. And having looked in a little more detail, it appears that CSA payments would be an allowable expense on the IVA - although that would leave amount available for IVA at hardly anything and the IVA would fail. That would leave me in a problem as well as my profession is one bared by bancruptcy, so I don't want to become bankrupt.

I agree that I should pay my way for the IVA payment but not sure what to base it on - should it be the income I go out to earn, or on the benefits etc that I get as well. I am going to work it all out properly but it seems that my net income is probably similar to his even though I earn about a fifth of what he does. I would be happy contributing half the payment I suppose, although feel annoyed that he is now saying he doesn't have enough money - it was his choice to go. But I need to keep being business like I think and try not to let emotions get in the way.

At the moment I am unlikely to involve the CSA I think as we are still managing to be amicable; just wanted to think about how it could be treated if necessary. Am also going to talk to the accountants who administer the IVA and find out if it could be formally split as in some ways that would be simpler.

Finally child benefit - should the NRP get part of it in proportion to how often they look after the children? I am not about to suggest H getting any of the child or working tax credits but somehow feels wrong that I get all the child benefit.

skibadee

How refreshing to hear parents being amicble!
The only way....I believe the IVA company could split payments as such....would be for you do do a individual IVA yourself...I know this could be difficult if debts are in joint names....might be worth talking to them to see what they say....I did an IVA a few years ago which failed and I ended up having to go bankrupt.....the debts were in my name.....which was just as well....because like you my H job is barred from bankruptcy.
As for the child benefit and Tax Credits...that is entirely up to you.....you are entitled to both as main carer....but if you feel you are financially better off than your H etc., maybe you could agree he pays alittle less maintenance to balance this out......do remember though not to leave your children with less than their entitled to and agree with H that the payments are reviewed every 12mths maybe???
I hope you can continue to be as amicable as you both are..it is so much better for everyone involved.

fannyanna

I have to agree that it's refreshing coming across someone as civil as you.

Not sure about the IVA etc but you did ask one question and that's whether to just base things on your salary or your salary and your benefits. You're "income" would be your salary and your benefits so if you wanted to be fair I would suggest basing calculations on your benefits too.

Marisco

Would the easiest way to do it not be for you to take less maintenance and for him to pay all the IVA? Say for example your IVA was 200 a month, and your agreed maintenance was 250 then you take 150 and he pays the IVA? I'm assuming of course that the IVA is for joint debts, if not, then it might be best for you to have one each, you pay yours and he pays his and the maintenance.

kst101

Thank you to all who have replied - and thank you those saying it's nice to see someone being civil - I don't feel that way all the time but there is little point in getting too worked up I suppose!

Thinking it over, my issue is really that H said that he would make the full IVA payment and pay the maintenance that he is and now he has realised that he has less money (and doesn't have me organising what used to be "our" money) that he wants to pay less. Before we split I did point out that there was a limit I felt to the rent he could pay and that I was worried I would lose out and it seems I was right as he went gor a higher rent and now realises he can't afford it.

The IVA mostly had debts in my name (credit cards) but things bought on them were for the family so would be hard to truely apportion them. I need to look properly at the finances and work out what I actually need and as far as I can tell what he can afford and we can come to some arrangement. Due to irregular working patterns due to seasonal work I am working and earning a large amount of my yearly salary at the moment and so appear to be better off than I am I think.

I really don't want to just say "OK" to him though as maybe I did that too much when we were togetger and tbh if he wants to live apart he needs to realise I won't always be so "nice" to him although I will try and remain civil. Am considering properly working out how many days he has had the children for since we split up (he has had them more recently as I have been working away) and working it all out like that. We are meeting on Monday for lunch so will try and work things out by then.

HRV

I think you're being very fair and it's lovely to hear. MY OHs ex left him with 50K of debt- in his name coz he consolidated her debts for her:mad: coz she couldnt get credit. He ended up declaring himself bankrupt.

With regard to maintenance- when you calculated the payments he would make did you take into account the 'discount' for overnight stays he has the children? If so I think you're being fair and I wouldnt bother with the child benefit. I guess your paying childcare? so that would be fair that you had the tax credits too.

skibadee

kst101,
I hope you managed to meet up on Monday to discuss this situation and have been able to come to an amicable agreement.

chriszzz

It is important that you both can keep it fair, once either one of you over step the mark then it can cause all kinds of problems and what you both dont want is to be battling over money because its usually the children that suffer and if you have a nice arrangement with all of you being involved with your children's happiness, that means more than money and your children will love you both for it.
He also has a financial responsibility to his children and you have to be comfortable with the financial arrangement to help raising your children, don't make the mistake of wanting to take him for everything you can, its not all about money, its about your children and their needs.

Hopefully you both can stay amicable after your meeting.