What financial claims do unmarried parents have?
Unmarried couples who separate have no automatic right to make a claim for financial support for themselves, unlike separating married couples who are protected by the Matrimonial Causes Act 1973. This disparity can leave an unmarried parent worried about the financial security they can provide for their child or children. However, Schedule 1 to the Children Act 1989 gives the court powers to make financial provision for children upon application by the parent with whom the child lives (resident parent).
This financial claim is available to financially support the child’s education and upbringing, housing needs and expenses, and any other specific needs the child may have. If you would like advice on whether you may be entitled to make this type of application, get in touch today to arrange a free 30-minute telephone consultation with one of our family lawyers.
Who can apply for a Schedule 1 Order?
A parent, step-parent, guardian or person named in a child arrangements order as a person with whom the child is to live may apply for the range of orders under Schedule 1.
In some circumstances, a child over the age of 18 may apply for periodical payments, normally for financial support for further education or vocational training, or if there are special circumstances.
What are the range of Schedule 1 Orders can the Court make?
- a lump sum payment (at once or in instalments) by one parent to the other, for the benefit of the child. For example: expenses connected with the child’s birth; the purchase of a family car; furnishing a property; or to pay school fees. There is no limit on the number of lump sum applications that can be made.
- a property to be transferred (or held in trust) for the benefit of a child until a certain ‘trigger’ event occurs, for example, the child reaching the age of 18 or completing their full-time education at which point the property will either be transferred back to the payer or sold and the proceeds given back to the paying parent.
- periodical payments – regular payments of child maintenance to the resident parent where:
- the non-resident parent’s income is higher than the limit where the Child Maintenance Service deals with maintenance (£156,000 gross per annum); or
- in respect of educational expenses; or
- for expenses connected with a child’s disability.
What about a child over 18?
The court can make the following orders for a child over 18 years of age. However, it will be the child making the application and not the resident parent:
- periodical payments
- lump sum
Are Schedule 1 Applications only for high asset/income rich cases?
These types of applications have previously had a reputation for only being suitable when the non-resident parent is extremely wealthy and therefore has the money to spare, but this is not necessarily true. The court will focus upon the needs of the child and will ensure that the child is protected financially. In low to medium asset cases, the court will establish the following:
- the proper housing needs of the child and the resident parent;
- whether a further lump sum is required to, for example refurbish the house or fund costs of moving; with reference to a checklist of items required to make the house habitable;
- whether any further items of capital expenditure may be claimed;
- whether there are any capital costs which have been incurred in meeting the costs of child in birth or in maintaining the child, or which have been incurred before the making of an order.
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