Redundancy and Child Maintenance

Hi
My partner has been offered voluntary redundancy. He has 26 years service and has been made a great offer (providing he can get a new job!!). When he left his wife he gave her the house and car, paid 1/3 of his salary etc, so this is our once in a lifetime chance to get back in to a better financial position.

So, my question!! He has a Clean Break order granted on 5th Jan 2011 along with his Decree Nisi. Within that, on 23rd May every year, the amount he pays her for child maintenance is reviewed and calculated on 15% of his net salary. He pays no spousal maintenance. His redundancy will be with effect from 20th May, with 3 months on full pay as gardening leave, then thats it. How does he calculate what he needs to pay his ex wife for the next 12 months? Or will it have to be set at 15% of his gardening leave money, then reviewed by CSA in Jan next year if he has not got new employment?

Your partner and his ex?-wife can agree between them what they like and a solicitor can document the agreement in the form of a deed. Although it isn't legally binding it would be given weight in court should there be problems later on. The alternative of applying to court for a variation within a year of the date of the order is expensive and usually not worthwhile.

One year after the date of the order either party can apply to the CSA and the court order ceases to have any effect. Under CSA rules statutory redundancy pay isn't considered income for assessment purposes although redundancy pay over and above the statutory amount is. That would be a good starting point to negotiatie a decrease in the amount of CM paid.

Thanks Fiona. How do we know the statutory amount and the amount above this?

I'm not sure if this is correct. The CSA website indicates that contractual redundancy pay is treated as earnings when applying a DEO
www.csa.gov.uk/en/employers/earnings.asp

I think many people mis-read this page and think that it is treated as earnings rather than what earnings a DEO can be taken from.

I haven't been able to find anything in the CSA regs that says how they would take contratual redundancy in as earnings. There is reference to capital over £65,000 and a notional/assumed earnings if someone can be found to have deliberately taken redundancy in order to avoid CSA.

I have rang CSA about this matter and although you often are given incorrect advice I was advised exactly as I understand it above.

I believe the information was correct a the time it was given and the CSA have recently altered their website. There are changes to child support on a regular basis and the rules may have altered or perhaps the CSA changed the information because the situation is complicated and people were confused.

My understanding is child support is calculated as a percentage of taxable pay and contractual redundancy payments are taxable. The exceptions are if the payment is less than £30,000 but more than the statutory amount when, depending on the circumstances, tax may not be due and payments given when someone is made redundant that aren't treated as redundancy pay.