Spotlight
Family Court Practice, The
Order the 2021 edition due out in May
Court of Protection Practice 2021
'Court of Protection Practice goes from strength to strength, having...
Jackson's Matrimonial Finance Tenth Edition
Jackson's Matrimonial Finance is an authoritative specialist text...
Spotlight
Latest articles
Family Law Awards adds a Wellbeing Award - enter now
This past year has been different for everyone, but family law professionals working on the front line of family justice have faced a more challenging, stressful and demanding time than most. To...
Perspectives on civil partnerships and marriages in England and Wales: aspects, attitudes and assessments
IntroductionThis article considers the developments since the turn of the century in the provision of new options for same sex and opposite sex couples to formalise their unions with full legal...
Family Law journal - take the survey and you could win £50 worth of vouchers
Do you subscribe to Family Law journal?Our aim is to provide all subscribers of Family Law with compelling, insightful and helpful content that you enjoy reading and find useful in your...
Commencement date of 6 April 2022 announced for the Divorce, Dissolution and Separation Act 2020
The Ministry of Justice has announced that the Divorce, Dissolution and Separation Act 2020 (DDSA 2020), which received Royal Assent on 25 June 2020, will now have a commencement date of 6 April 2022....
HMCTS blog highlights the use of video hearing due to COVID-19
HM Courts & Tribunals Service has published a blog detailing the impacts of coronavirus (COVID-19) on hearings. Pre-pandemic, HMCTS states that the use of video technology for live participation...
View all articles
Authors

Government to close ‘joint account loophole’ for parents owing child support

Sep 29, 2018, 21:47 PM
Family Law, child maintenance payments, joint account, new powers, Government designed to stop parents avoiding, Child maintenance: deduction orders against joint accounts
The Government has announced new powers designed to stop parents avoiding child maintenance payments.
Slug : government-to-close-joint-account-loophole-for-parents-owing-child-support
Meta Title : Government to close ‘joint account loophole’ for parents owing child support
Meta Keywords :
Canonical URL :
Trending Article : Yes
Prioritise In Trending Articles : Yes
Date : Oct 31, 2017, 03:20 AM
Article ID : 116106

The Government has announced new powers designed to stop parents avoiding child maintenance payments. Currently, if a parent owes child maintenance, deductions can only be made from a bank or building society account held solely by them. This allows a small number of parents to neglect their obligations by putting their money into a joint account with a partner. New laws will be brought in to allow deductions to be made from joint accounts in order to recover child maintenance arrears. Safeguards will be put in place to protect the other holder of the  joint account.

The Government believes closing the joint account loophole could lead to more than £390,000 in additional child maintenance being collected. It has published its response to a public consultation on joint account deductions. This sets out how deduction orders against joint accounts will work and the safeguards that will be in place to protect the other holder of the joint account.

These include:

  • a deduction order only being imposed on a joint account when the paying parent does not have their own account, or there is not enough money in their own account;

  • data on a joint bank account will be collected and bank statements examined to establish which money in the account belongs to the paying parent;

  • both account holders will be given the right to make their case before a deduction order is made; and

  • the maximum deduction rate on regular orders will be set at 40% of the paying parent’s weekly income.

The new power will come into effect in early 2018.

Categories :
  • News
Tags :
money_6
Authors
Provider :
Product Bucket :
Load more comments
Comment by from