child maintenance - paying lump sum in advance

wallofbeans

Hello all,

I'm in the middle of agreeing child maintenance payments with my ex. She is asking if I will pay a lump sum upfront, this would cover all payments for the next 5 years and then our child will be adult. I'm happy to pay what is required every month, but is it a good idea to just pay it all in one go like that?

Would CMS be happy with that way of doing it? And what would I proof that I've paid all upfront? I'm worried that she could take the lump sum and then ask CMS for a monthly amount after that as well. We are on good terms and I don't think she would, but I would feel more comfortable if there is a way we can show CMS that we've done that, so it's logged in their system?

 

Hoenir

What is your ex planning to do? (Asked rhetorically). 

tacpot12

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

As a parent, you need to be convinced that if you pay child maintenance in advance that your ex is going to be able to use if for maintaining your child over the next five years, so you need to understand what her plan is. There is a risk that her circumstances change, and that she might go to the Child Maintenance Service CMS).

When the CMS see your written agreement they should understand that you have prepaid, but they will assess your liaiblity based on your current circumstances, so if they have improved (as seems likely), they will require you to pay some more maintenance. The question asked by Hoenir is important - I wouldn't do agree to this idea without a very good reason, and without your ex signing a written agreement that explains how the amount has been calculated.

wallofbeans

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

I'm not sure what you mean?

wallofbeans

tacpot12 said:

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

As a parent, you need to be convinced that if you pay child maintenance in advance that your ex is going to be able to use if for maintaining your child over the next five years, so you need to understand what her plan is. There is a risk that her circumstances change, and that she might go to the Child Maintenance Service CMS).

When the CMS see your written agreement they should understand that you have prepaid, but they will assess your liaiblity based on your current circumstances, so if they have improved (as seems likely), they will require you to pay some more maintenance. The question asked by Hoenir is important - I wouldn't do agree to this idea without a very good reason, and without your ex signing a written agreement that explains how the amount has been calculated.

Ok - I think she'll just keep it in an ISA. But yes, that's my question really - can we inform CMS that this is what we've done so they know how much I've already paid? I don't mind giving more if required, but don't want to give a lump sum AND her ask for the same amount but monthly after I've done that. 

EDIT: I don't think my financial circumstances will improve in the next 5 years. They are much more likely to either stay the same or get worse!

elsien

If your earnings decrease, you will have overpaid. If your child ups sticks and comes back to live with you, you will have overpaid. 

You will be losing and your ex will be gaining the interest on the lump sum.

How does this arrangement benefit you as well as her? 

wallofbeans

elsien said:

If your earnings decrease, you will have overpaid. If your child ups sticks and comes back to live with you, you will have overpaid. 

You will be losing and your ex will be gaining the interest on the lump sum.

How does this arrangement benefit you as well as her? 

I know... and I'm worried about all that.

But on the plus side, this will keep her happier - so nicer to me (making my life easier) and nicer for our child to be around (making their life easier)...

Hoenir

wallofbeans said:

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

I'm not sure what you mean?

What's going to happen to the money. Will it be used for the purpose it's meant to be. 

elsien

Hoenir said:

wallofbeans said:

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

I'm not sure what you mean?

What's going to happen to the money. Will it be used for the purpose it's meant to be. 

Irrelevant. Once it’s paid, it’s no business of the OP what it’s used for. 

wallofbeans

elsien said:

Hoenir said:

wallofbeans said:

Hoenir said:

What is your ex planning to do? (Asked rhetorically). 

I'm not sure what you mean?

What's going to happen to the money. Will it be used for the purpose it's meant to be. 

Irrelevant. Once it’s paid, it’s no business of the OP what it’s used for. 

Agreed.

The main concern for me - is will paying all at once be acknowledged by CMS and logged on their system somehow? I don't want to pay 5 years worth in one go - and then they come to me later and say I'm not paying every month.

There is also the worry that if what I should pay reduces, can I get some back, but I guess that is about trust between me and my ex - but I risk that I won't get it back if that happens, and I have to be okay with that.

elsien

But why does she want you to do it this way? If things are amicable these are really points you should be discussing with her, including the possible drawbacks for you.
If you lose your job (it happens) then you may well have need of that lump sum yourself. 

If it’s a private arrangement then CMs won’t know anything about it. They won’t have anything logged anywhere until/unless your ex tries to start a claim at some point. At which point they would look at all the evidence and make a decision then.

For me, if you can’t afford to lose the money if your circumstances change then don’t go there.