Hi
For some time now I have heard complaints from friends male & female regarding the payment of child support.
Its a subject that I know very little about other than my own solicitor believes its an “administrative” calculation that does not take into consideration the full circumstances of the parties.
I am wondering what experiences others have in these matters.
Issues that have been conveyed to me include
Extraordinary large portion of income is paid that puts the person in a position of not being able to afford to rebuild & set up their own future.
Not being able to afford to buy a home because child support payments and their current rent total a huge expense.
The party with the children lives a comfortable life having retained the family home while they are on the skin of their bones. ( real or perceived I cant say !!)
Some have quit their salaried jobs and become self
employed and thru company structure able to minimise payments.
They accept responsibility to pay a contributed but believe the amounts are ridiculous)One person actually told me they have declined promotional opportunities because they believe it would just “all go in child support”.
I totally agree that parents should bear the responsiblity for the children that are brought into this world.
I also in part agree that children should be disrupted minimally in terms of lifestyle, eg.roof over head in a breakdown of a relationship. There is already enough emotional pain on all when things in the “adult” world breakdown.However I cant help but querie whether the system is a fair one. It seems so regressive.
Is there any legal move to review the system that anyone knows of.. or any good support websites for those caught up in this ??
Particulalry any ideas on how one can get on with rebuilding their future that is legal but does not penalise them. ??
Any thoughts appreciated.Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
I agree that people should not be penalised and forgoe opportunities only because they have to pay it all in child support.
My idea would be to look at setting up a family trust (therein providing a structure to build wealth for the children) while I am not sure how child support agency can assess someones income, when it is now owned by an entity.[^]I am so glad I found your message. I am the 2nd wife of my partner and we have a beautiful 20 month old daughter. My partner also has a 6 year old daughter and pays child support to his 1st wife. I dont want anyone out there to think I’m complaining or that my husband wouldnt support either of his 2 children but there should be a better system for all.
The child support payment is 18% of the gross salary. Now my husband is in the high income bracket and pays 47.5% in tax. He basically has to work 2 days to get 1 days pay. The more you earn the more you pay in child support. I have also heard that my salary can be counted as income towards child support. Is this true?
Do we invest in PCFP and pay more in child support or should we invest to negative gear?
Any advice or suggestions would be greatly appreciated.
tuppence
Tuppence
It’s my belief that – gearing will not help you, as the child support is based on ‘gross earnings’, however , remember, + gearing, in your partners name will *increase* his gross income..[V]
I also ‘don’t’ believe that your income can be counted towards his financial commitments to Child support.
makes it hard, when you have a child yourself, and have to take time off work and you still have to pay the support doesn’t it..There was another thread about this some weeks back, if your husband and his EX get along ok, maybe they can strike an ammicable ‘agreement’ re child support, as i believe you can have such an agreement without going through the Childrens Support system
Other than that, maybe a family trust structure or such is the way to go regarding investments, as income can be defered to you, especially if your doing the books etc etc and not working full time
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Hi tuppence
Agree with redwing. Your income i don’t believe is counted. If you are to buy CF+ investments, I would seriously think about a trust structure, as this gives you flexibility in who to pay the income to. You could also spend money ‘pre tax’ if done in the right way.
Cheers
MelThanks REDWING and Mel,
You’ve certainly given me something more to think about and to keep going with property investing.
tuppence
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