Child support payments and redundancy

Posted on Jan 31, 2018 by Samantha Miller   |   Categories: Family Law

One question a lot of people ask when faced with redundancy or the option of voluntary redundancy, is how will it affect child support payments.

In a nutshell the answer is – if it’s considered taxable income then you will need to pay child support. Most redundancy packages are calculated based on a number of weeks salary and hence the calculations for child support are relatively simple.

Calculations are usually based on the most recent years tax return. If you are the payee (receiver of child support) and the payer is made redundant you should continue to receive child support at the same rate for a period. If the payer informs the Child Support Agency (CSA) that they are no longer earning an income and fails to disclose the redundancy payment then you should make the CSA aware. Ultimately if this is the case then it will catch up with the payer at the end of the financial year when the next tax return is available to the CSA. The payer will then be found to be in arrears and payment will need to be made to you.

Obviously if the payer has spent all the money by then it may be some time before the arrears are cleared. You are therefore much better advised to ensure that the CSA investigates the redundancy package as soon as possible.