It is now just as likely for an unmarried couple to have a child as it is for a married couple, but public awareness of the difference in legal status of married vs unmarried parents leaves a lot to be desired. There are two key differences, in relation to: 1. financial provision for children after separation and 2. Parental Responsibility. In this blog, I will deal with the differences in relation to financial provision for children.
Every parent is legally obliged to provide financially for their children, this is governed by the Child Maintenance Service (CMS) who can calculate and enforce the payment of child maintenance. The amount of child maintenance payable varies depending on a number of factors, including number of children and salary, so the child maintenance calculator on the CMS website is a useful tool as a starting point. The payment of maintenance ensures some provision for the child after the breakdown of the relationship but does very little for a parent with insufficient funds to house their children post separation.
For married parents, the Matrimonial Causes Act is there to help but there is no such luck for unmarried parents who are left to make claims under Schedule 1 of the Children Act. These claims allow the parent with care of the child to claim against the other for financial support for the benefit of the child. This is not as helpful as it seems. Claims under Schedule 1 only take into consideration the needs of the child with the needs of the parent largely ignored – in contrast to a claim made by a married parent.
However, all is not lost; under Schedule 1 the ‘parent with care’ can, in an appropriate case, claim for funds or property to be transferred to them in order to provide a family home for themselves and the child. Funds for education or other expenses such as family cars can also be transferred. But, as with all silver linings, there’s a catch! Under Schedule 1, the Court rarely orders that funds or property are transferred permanently, preferring to order transfer only until the child reaches adulthood, at which point the ‘parent with care’ has to return the funds or property. This undoubtedly provides for the child during their childhood but ultimately puts the ‘parent with care’ back in the uneasy financial position they found themselves when they made the claim.
Schedule 1 claims are few and far between and can be very costly, so if you find yourself in this position it is worth seeking legal advice and, if possible, talking to your ex-partner about how your children’s future will be financed.