How does the court calculate child maintenance?

The starting point for calculating child maintenance payments will always be the CMS formula. This formula applies on gross annual income up to £156,000. Where an individual earns over £156,000 and is married the Family Court can, on a divorce, award ‘top-up’ Child maintenance as well as making School Fees Orders.

Changes to child maintenance in high income cases (over £156,000)

In the recent case of James v Seymour [2023] EWHC 844 (Fam), Mostyn J readjusted his own formula setting what should be taken into account when establishing child maintenance payments for individuals earning over £156,000 per annum.

The new formula is called the Adjusted Formula Methodology. The court starts with the gross income of the individual and make deductions for any children living with the paying parent (up to 3 children and these children do not need to be biologically related), any pension contributions and school fees/extras (grossed up to reflect tax paid) being paid. This figure will then be used to determine the amount of child maintenance payable.

The CMS formula will be applied to the first £156,000 and anything over that will be subject to the tariff as set out in Mostyn J’s judgement dependant on the number of children (up to 3 children). This figure may be further subject to a reduction as determined by whether the childcare is shared and on how many days the paying parent provides such care.

When will the top-up formula not apply?

This new ‘top-up’ formula will not apply where the paying parent has more than 4 children, where they are earning over £650,000 or where their income comes purely from savings.

Is the change good or bad?

The change to the top-up formula makes it fairer for those who are paying children’s school fees as these will now be taken into account, however this is not equal with the CMS formula which does not take into account children’s school fees being paid. Therefore, an individual earning just less than £156,000 per annum and who is paying school fees may end up paying more in child maintenance than someone who earns just over £156,000 who is paying the same amount of school fees.

Solicitors for Child Maintenance Matters

Gordons Partnership has an experienced team of family law solicitors, well-versed in supporting clients of all backgrounds, including high-net worth individuals.

If you want to know more about our services pertaining to child maintenance matters, contact us by calling 01483 451900 (Guildford office) or 020 7421 9421 (London office). Alternatively, you can email sols@gordonsols.co.uk.

About the Author

Poppy Jackson

Trainee Solicitor