£1 million payout, how will it affect CMS payment

CRAFTYC_2 · 15 January 2019 at 10:35PM

Hi.
First time posting. I left my ex 3 years ago & am almost at the end of our divorce. We have 4 kids who reside with me & spend 2 nights with him a month (their choice). A week after we separated he had an accident & hasn't worked since.
He receives disability benefit so only pays £30 a month as CMS dictates.
Just been informed by solicitors he has been offered a million as his settlement for injury.
My question is will he cease to get benefits because of this large payout & therefore could stop paying child maintenance altogether? Or would it partly be used to calculate future payments as supporting his kids was part of the reason he has been offered such a large amount?
I havent pursued any money myself in the divorce but was shocked when someone told me if his benefuts stop because of the payout he may be able to pay nothing. Is this right?
Any help? I understand this is a very unusual case. Thanks.

Comms69 · 16 January 2019 at 10:46AM

CRAFTYC wrote: »

Hi.
First time posting. I left my ex 3 years ago & am almost at the end of our divorce. We have 4 kids who reside with me & spend 2 nights with him a month (their choice). A week after we separated he had an accident & hasn't worked since.
He receives disability benefit so only pays £30 a month as CMS dictates.
Just been informed by solicitors he has been offered a million as his settlement for injury.
My question is will he cease to get benefits because of this large payout & therefore could stop paying child maintenance altogether? Or would it partly be used to calculate future payments as supporting his kids was part of the reason he has been offered such a large amount?
I havent pursued any money myself in the divorce but was shocked when someone told me if his benefuts stop because of the payout he may be able to pay nothing. Is this right?
Any help? I understand this is a very unusual case. Thanks.

Lump sums can be used to calculate CMS payments. But if he is disabled - which seems likely - the calculation has to take that into account.

Obviously if he has no income, he cant pay anything on going.

Just as an aside, if he is sensible with the money, he would have income from interest and investments, which would count.

HoneyNutLoop · 16 January 2019 at 5:49PM

An assets variation has now been introduced to the scheme administered by CMS, but compensation for personal injury is specifically excluded from being taken into consideration.

That means that if his benefit is stopped because of the payment (not all benefits would stop because of it - only means tested ones) then your calculation would reduce to nil.

In the future, you could apply for an unearned income variation to take account of the internet received on the capital as income for the maintenance calculation, but there would be no point now as it is calculated on complete tax years. You would therefore need to wait until after April, as a minimum before applying for this tax year to be complete.

In your shoes, I would talk to your solicitor to see if there is any avenue via the courts that is available to you.

ilovechristmas1 · 4 February 2019 at 10:00PM

op that sounds unfair.hope there is a solution

jonesMUFCforever · 11 February 2019 at 12:54AM

I would think that the compensation would be put into a trust - IMO making it outside of any claim from CMS or indeed the benefits agency.

£1 million payout, how will it affect CMS payment

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