Child support

The ins and outs of Child Support

Raising a child is no easy task. While it can be one of life’s most rewarding experiences, children are expensive and the cost of raising them can be difficult for one parent to manage alone.

That’s where child support comes in - the money is paid by the parent not living with the child or sharing their care with the other.

Some people think if they share care equally with the other parent, they do not need to pay child support. This would be an incorrect assumption. If one carer earns a higher income than the other, they may be liable for child support.

Step-parents too can be liable for child support. You may be surprised to know that you can be required to pay child support for your step-child after separating from the child’s parents. A parent can apply to the Family Court to have someone declared a step-parent of the child, and the court will review the circumstances and make a decision based on the situation.

Assessment formula

The Inland Revenue Department (IRD) manages child support in New Zealand and either carer can apply for it. A formula assessment is used to work out who should be paying and how much. The taxable income of both parties is used, and a living allowance deducted from that. Care arrangements are also considered. For example, if one parent has other dependent biological children in their care.

At any time, you and the other carer can reach your own private agreement about child support payments and manage it between yourselves. If you can reach a voluntary agreement about the amount to be paid you can register this agreement with the IRD to manage the payments for you.

What if you think the assessment is not fair?

If you believe the IRD formula assessment is unfair you may be able to apply for a departure order which will be heard before an administrative review.

This is what is considered when making the order

You’re responsible for supporting another child or person.
You have additional costs because you are supporting a child or person who has special needs.
You have commitments that are necessary to support you, another child, or a person who you have a responsibility to maintain.
There are significant costs involved to enable the child to have contact with you or the other parent.
There are additional financial costs because the child is being cared for, educated, or trained in a particular way that’s expected by either you or the other parent.
The formula assessment is unfair because it does not accurately account for the income, earning capacity, property, or financial resources of either you, the other parent or the child.
The formula assessment does not account for money or property that you’ve previously made or transferred to the child, or to the other parent or another person for the child’s benefit.
The other parent has been able to live in the family home after the two of you separated if you own or co-own the home.
In the three years after you separated from the other parent, you earned additional income to meet the costs of re-establishing yourself and any of your dependents.

Child support

The ins and outs of Child Support

This is what is considered when making the order

You’re responsible for supporting another child or person.

You have additional costs because you are supporting a child or person who has special needs.

You have commitments that are necessary to support you, another child, or a person who you have a responsibility to maintain.

There are significant costs involved to enable the child to have contact with you or the other parent.

There are additional financial costs because the child is being cared for, educated, or trained in a particular way that’s expected by either you or the other parent.

The formula assessment is unfair because it does not accurately account for the income, earning capacity, property, or financial resources of either you, the other parent or the child.

The formula assessment does not account for money or property that you’ve previously made or transferred to the child, or to the other parent or another person for the child’s benefit.

The other parent has been able to live in the family home after the two of you separated if you own or co-own the home.

In the three years after you separated from the other parent, you earned additional income to meet the costs of re-establishing yourself and any of your dependents.