A lot of parents may ask themselves ‘how much maintenance should I pay?’ if they are financially supporting their children and/or spouse. The answer to this question depends on what type of maintenance a person is paying for. Maintenance of a child under 18 is referred to as child support. Child support payments are payments that typically fund a child’s:
- School fees
- Housing
- Clothing
- Food
- Transportation
- Medical Fees
- Extracurricular activities in school
- Entertainment
Does a parent need to pay child support if their child is over 18? A child over 18 will require child maintenance if they still need financial support. The same list above applies to what an adult child needs. Adult children typically need child maintenance payments if they have mental or physical disabilities that prevent them from financially supporting themselves. Adult children may also receive child maintenance payments if they are still finishing school.
Another type of maintenance that we’ll discuss is spousal maintenance. After divorce, a lower-earning partner will suffer financial loss, especially if they were financially dependent on their higher-earning spouse. Higher-earning partners have the duty and obligation to financially support their lower-earning partners after a divorce. Read on to know more about “how much maintenance should I pay?”.
Who Will Pay Child Support?
Both parents have the duty and responsibility to handle child support payable for the next years to come. This typically requires both parents to divide the costs of their combined income. This includes biological parents, adoptive parents, and legal guardians. In some cases, a person having the care of a child can apply to provide child support.
Additional Information for Child Maintenance and Child Support
Child support usually ends after a child turns 18. Both parents with children who separate or divorce must provide for their children financially, regardless of where they live or their relationship status. This means that it is often in the parent’s best interests to agree on the future structure of child support payments.
Child maintenance takes a toll on a parent’s financial capabilities, especially if they did not expect to pay child maintenance. They may have thought that their obligation of financial support for their child ends at 18. Sometimes, this is not the case, and parents may wonder what’s the next step.
Child Maintenance Orders
If both parents consent to financially support their adult child, they may go to court and apply for child maintenance orders. This helps them identify the child support payable by both parents. Both parties will also need to notify Services Australia within 14 days of a child maintenance order whether it was obtained through consent or a court hearing. One parent or both parents may apply for a child maintenance order if they are:
- The child’s parents, including any adoptive parents
- The child does not have a registered child support case with Service Australia
- The child’s grandparents
- Any other person who is concerned with the care and welfare of the adult child
“How Much Child Support Should I Pay?”
Services Australia can aid in calculating each parent’s child support income and maintenance assessments for parents who are still financially supporting their children. Similar to child support, child maintenance will depend on the parent’s financial circumstances and this will help answer questions like ‘how much maintenance should I pay?’.
A child support assessment determines the amount of child maintenance a person is required to provide or receive. There are 6 steps to calculate child support for each child. These are:
- Add both parents’ child support incomes together to obtain a combined child support income
- Divide each parent’s individual child support income by the combined child support income to get an income percentage.
- Work out each parent’s care percentage for the child.
- Work out the cost percentage of the child.
- Subtract the cost percentage from the income percentage for each parent.
- Acquire the child support income.
The parent with a negative percentage may receive child support. This is because their share of the costs of children is being more than met by the amount of care they are providing. If it is a positive child support percentage, the parent needs to provide child support.
This is because they are not meeting their entire share of the costs of the child directly through care. If both parent have different care arrangements for various children, they might have different child support percentages for each child.
Those who qualify may request to have their assessment for their children before their children turn 18. However, after the agreement expires, either parent may request a child support assessment. The parent who receives child support can then apply to have the assessment extended until the child turns 18 years old.
Spousal Maintenance
Some spouses tend to also lose financial stability after divorce which will leave them unable to financially help themselves. One reason why some spouses lose financial stability after divorce is that they were financially dependent on their former partner. Another possible reason is the lower-earning spouse used to have a business with his/her spouse but was unable to secure shares.
The question ‘how much maintenance should I pay to my spouse’ is for higher-earning spouses. As mentioned, higher-earning spouses are required to financially aid their lower-earning ex-spouse until they can get back on their feet. The maintenance payments will help low-earning parties secure standard living conditions until they:
- Find work that will help them financially
- Get a better degree which will help them secure better work opportunities
- Marry another person
- Pass away
“How Much Spousal Maintenance Should I Pay?”
Higher earning parties who just came out of a divorce may now ask themselves ‘how much spousal maintenance should I pay?’. Unlike property settlement, which automatically comes right after divorce, one cannot easily obtain spousal maintenance. The courts will consider the following when making spousal maintenance orders:
- The supervision and care of children under the age of 18;
- Both the parties’ ages and physical health;
- The ability of the lower-earning party to find and keep a job
- Each party’s earnings, assets, and financial resources;
- The pledges made by each party to support themselves and other dependents;
- The parties’ eligibility for a pension, stipend, or benefit;
- A reasonable standard of living under all the circumstances;
- Whether the spousal maintenance payments would boost the other party’s ability to earn;
- Any creditors’ (a person whom money is owed) rights;
- Any contribution to the other party’s income, earning potential, assets, or financial resources;
- The duration of the marriage and its effects;
- The nature of sharing a residence with somebody else;
- Any property settlement’s conditions;
- If a person is receiving or giving child support payments;
- If both parents have multiple child support arrangements;
- The conditions of any legal contract including money;
- The conditions of any legal contract including money; and
- Any information that the court deems necessary so they can provide justice to the case.
Knowing How Much Spousal Maintenance Payments Are Needed
What’s next after considering the above factors? After considering these factors, people asking ‘how much spousal maintenance should I pay’ should consider the following. The following steps can aid higher-earning spouses to figure out how much spousal maintenance payments are needed. Spouses may:
- Find out how much their taxable income is with their spouse
- Calculate their child support obligations if there are any
- Consult with an accountant to confirm their income tax
- Add up reasonable expenses
- Create a thorough budget that details their income and spending for the upcoming six to twelve months.
- Consult with a family lawyer if disputes arise between them and their other spouse.
JB Solicitors’ Family Lawyers
Money matters like child support, child maintenance, and spousal maintenance are one of many sources of disputes in family law matters. This is the case especially if some parties refuse to pay maintenance to children or their spouses. Our family lawyers at JB Solicitors are here to aid clients who have difficulty handling child support, child maintenance, and spousal maintenance matters.
We also have mediation and arbitration services that can help parties reach a legally binding decision about how much payments are needed for spousal maintenance and child maintenance. Let us help calculate the proper maintenance payments so disputed parties are able to sort out all financial matters following their divorce or separation.
Contact us today if you have more questions regarding child support, child maintenance, and spousal maintenance.
