Polly Atkins discusses child maintenance in high net worth cases in ThoughtLeaders4 HNW Divorce magazine

Polly’s article was published in ThoughtLeaders4 HNW Divorce, Issue 13 (June 2023), and can be seen here.

Polly Atkins, Associate in our Family & Relationships department, explores the evolving landscape of child maintenance in high-net-worth (HNW) cases, particularly through the lens of Mr Justice Mostyn’s recent judgments.

The introduction of the Household Expenditure Child Support Award (HECSA) in Collardeau-Fuchs v Fuchs marked a significant shift, allowing courts to consider the broader household expenses of the primary carer, typically the mother, when determining child maintenance. This approach diverges from the traditional CMS formula, especially in cases where there is no concurrent spousal maintenance claim.

The HECSA was reaffirmed in Re Z (No 4), where Cobb J applied it in a Schedule 1 claim, emphasising that child maintenance should alleviate financial anxiety for the carer and reflect a realistic assessment of household needs.

Further clarification came in James v Seymour, where Mostyn J introduced three new acronyms: Child Support Maintenance (CSM), the Adjusted Formula Methodology (AFM), and the Child Support Starting Point (CSSP). These tools aim to provide a structured yet flexible framework for determining maintenance when the payer’s income exceeds £156,000.

The AFM adjusts gross income for factors like pension contributions and school fees, offering a “loose” starting point for awards. However, Mostyn J emphasised that discretion remains key, particularly in complex or atypical cases.

While this dual approach offers clarity, its broader adoption by the judiciary remains uncertain, leaving practitioners to navigate both established formulas and evolving judicial guidance.

Read the full article on the ThoughtLeaders4 HNW Divorce website [external link].