Understanding Child Maintenance Arrears: Child Support Arrears Help
Child support arrears can often cause confusion and anxiety for those new to the Child Maintenance Service (CMS). In a divorce, its common for the receiving parents solicitors will keep raising the issue of child maintenance arrears, and divorce solicitors, will often try to portray the paying parent as a bad parent when child suport payments are recorded as in arrears.
But its all bluff. Dont be intimidated because your ex partner is divorcing you, using top divorce lawyers from the top divorce law firms. They are able to intimidate you, because you dont know what they know. Which is "Why you Shouldnt Pay CMS Arrears"
So lets explain why you should not pay child support arrears, by delving into the terminology surrounding arrears, explain the calculations that lead to their accumulation, and provide practical advice on how to manage them effectively.
But its all bluff. Dont be intimidated because your ex partner is divorcing you, using top divorce lawyers from the top divorce law firms. They are able to intimidate you, because you dont know what they know. Which is "Why you Shouldnt Pay CMS Arrears"
So lets explain why you should not pay child support arrears, by delving into the terminology surrounding arrears, explain the calculations that lead to their accumulation, and provide practical advice on how to manage them effectively.
Defining Arrears and Debunking Misconceptions:
Arrears, in the context of child maintenance, refer to child support the payments that have not been made according to the repayment schedule set by the Child Maintenance Service, CMS, or due to a change to the repayment schedule meaning that matters are backdated, but payment is taken in the future. So although these are not arrears, as in they havent been paid, they are included in arrears figure.
That makes it extremely confusing. Because the arrears are not due, and they are arrears due to the payments for the past, not being paid, because they are due in the future!
It's important to understand that even a minor unpaid amount can be labeled as arrears. For example, when a CMS case is set up, the CMS is calculated on a daily basis, and the CMS dont send a calculation until 14 days have passed, so there will always be arrears at the start of a case. This designation can lead to significant confusion, especially if not properly explained. Let's take a closer look at a few examples to illustrate this point.
That makes it extremely confusing. Because the arrears are not due, and they are arrears due to the payments for the past, not being paid, because they are due in the future!
It's important to understand that even a minor unpaid amount can be labeled as arrears. For example, when a CMS case is set up, the CMS is calculated on a daily basis, and the CMS dont send a calculation until 14 days have passed, so there will always be arrears at the start of a case. This designation can lead to significant confusion, especially if not properly explained. Let's take a closer look at a few examples to illustrate this point.
Imagine your monthly child maintenance payment is £300, and you make payments consistently every month except for one. In this scenario, CMS will classify that missed payment as arrears. If you miss 3 payments, CMS may start the enforcement process. This means that the paying parent will be put onto Collect and Pay, which incurs fees, however they can actually start enforcement once the first payment is missed.
Understanding CMS Payment Cycles and Recalculations:
To comprehend how arrears build up, it's crucial to understand how the CMS calculates child support payments and when arrears are triggered. For instance, if your CMS case was opened on January 1st and you make payments on the 1st of each month, your first payment would be due on February 1st. Payments continue monthly until the next January, when CMS recalculates your child support payments based on the previous 12 months.
So in this case, you would be paying in arrrears, and you will therefore owe a month of money on the day you are due to pay it. The payment will reduce the balance, and then a month later the cycle starts again.
CMS is worked out as a daily figure. Once a month the accrued daily figures are posted to CMS accounts. Parents may notice that once a month the arrears balance goes up. It then reduces on payment day. This means the arrears balance could be three different figures as it sarts at one level, goes up when arrears are posted, and then goes down again when payment is made.
To complicate matters, a month has a different number of days, so whilst 1/12th is paid each month, it may mean the figures differ slightly month to month.
So in this case, you would be paying in arrrears, and you will therefore owe a month of money on the day you are due to pay it. The payment will reduce the balance, and then a month later the cycle starts again.
Posting Day
CMS is worked out as a daily figure. Once a month the accrued daily figures are posted to CMS accounts. Parents may notice that once a month the arrears balance goes up. It then reduces on payment day. This means the arrears balance could be three different figures as it sarts at one level, goes up when arrears are posted, and then goes down again when payment is made.
To complicate matters, a month has a different number of days, so whilst 1/12th is paid each month, it may mean the figures differ slightly month to month.
Missed Payments
Here's where the confusion often arises. During this 12-month period, if you miss a single payment, CMS will add that missed payment to your new calculation for the next 12 months. This can lead to higher monthly payments, and the letter notifying you about being in child support arrears might cause undue panic. However, here's the key: the recalculated figure already accounts for the missed payment, so there's no need to make a lump sum payment to cover the arrears amount separately. Some people do make the mistake of paying a lump sum. Please dont!
We are familiar with horror stories. It is known that when a payment is partially made, but reported as not paid, the system adds the full payment due from the balance.
Example: £100 is due, someone pays under by £5. It is reported as a missed payment. CMS computer records a £100 not paid, not £5, therefore inflating the arrears by a £100, and not £5
It has been found that often when reported payments are checked and found to be not missed, the CMS should reapply the entire paid amount to the balance. CMS frequently do not. This means that depite the payment being made, the system carries the balance until the case is closed, and the paying parent ends up paying again.
So if a payment is missed, it is essential to make sure CMS credit the whole amount paid.
Adjustments causing arrears:
If the CMS do a back calculation, and establish that you have to pay an extra £1 per day from 100 days ago, you are automatically put into £100 of arrears. However the payment is not actually due. CMS take the payment over the future repayment schedule. If there were 10 months to the next annual review, they would take an extra £10 per month.
So this causes confusion. The money is labelled as arrears, but is not due to be taken for 10 months.
We are familiar with horror stories. It is known that when a payment is partially made, but reported as not paid, the system adds the full payment due from the balance.
Example: £100 is due, someone pays under by £5. It is reported as a missed payment. CMS computer records a £100 not paid, not £5, therefore inflating the arrears by a £100, and not £5
It has been found that often when reported payments are checked and found to be not missed, the CMS should reapply the entire paid amount to the balance. CMS frequently do not. This means that depite the payment being made, the system carries the balance until the case is closed, and the paying parent ends up paying again.
So if a payment is missed, it is essential to make sure CMS credit the whole amount paid.
Adjustments causing arrears:
If the CMS do a back calculation, and establish that you have to pay an extra £1 per day from 100 days ago, you are automatically put into £100 of arrears. However the payment is not actually due. CMS take the payment over the future repayment schedule. If there were 10 months to the next annual review, they would take an extra £10 per month.
So this causes confusion. The money is labelled as arrears, but is not due to be taken for 10 months.
Practical Steps to Manage Arrears
If you find yourself with arrears, it's important to remain calm and follow a simple plan to manage them effectively, and fortunatly you can do this by simply making the payments that the CMS tell you to each month (or week).
You do not have to pay any lunp sums. In fact you should never pay a lump sum, as the arrears are included in the payment plan. Lump sums are often made when the first CMS payment letter comes, and it imnform sof arrears. Many make the mistake of paying the child support arrears recorded at that point, and then duplicating the payment, when the first child support payment is actually due.
Stick to the Child maintenance Repayment Schedule: Always pay the amount specified in your repayment schedule on the due date. This includes the recalculated figure that might appear higher due to the inclusion of the missed payment.
Do Not Pay Arrears Separately: Avoid the temptation to pay the arrears amount as a lump sum. The CMS already factors this into your new repayment calculation.
Communicate with CMS: If your arrears repayments along with regular payments are causing financial strain, reach out to CMS. They often offer options to spread arrears repayments over a longer period to make them more manageable. CMS have a policy called debt steer. This policy allows paying parents to spread arrears over two years. This just needs to be asked for. Dont be afraid to ask. Some people are paying arrears at the rate of £1 per week, on thousends of pounds of arrears. The key is that CMS will accept plans if you ask for them.
Avoid Unnecessary Loans: Refrain from taking out loans or borrowing money from friends to pay off arrears. The repayment schedule is designed to handle arrears over time. A loan will cost interest. You dont pay interest on CMS payments.
Conclusion:
Child maintenance arrears can be challenging, and confusing due to the terminology and calculations involved. A receiving parent is likely to insist on payment, but the NRP should not pay a lump sum, because the arrears are built into the calculations going forward.
Do not be coerced into paying child support payments that you do not legally have to make.
Remember, the key is to stay informed, communicate with CMS if needed to set up a plan, and maintain consistency in your payments.
Common Questions
Q. Can child maintenance arrears be written off?
A. The CMS can speak to the receiving parent and agree to write off arrears.
Q. Should I pay child support arrears?
A. You should only pay the scheduled payments, as the arrears repayment is built into the payments
Common Questions
Q. Can child maintenance arrears be written off?
A. The CMS can speak to the receiving parent and agree to write off arrears.
Q. Should I pay child support arrears?
A. You should only pay the scheduled payments, as the arrears repayment is built into the payments
Further Child Support Resources:
Here's Why You Shouldn't Be Afraid of Child Maintenance Arrears
CMS Arrears and the DEO
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