When parents separate, one of the most important — and often most contentious — issues is child maintenance. While the Child Maintenance Service provides a formula for most families, the position becomes more complex where one parent is a high earner. In these cases, the standard assessment may not properly reflect the child’s needs or the paying parent’s financial circumstances, and the court may be asked to order additional “top-up” maintenance.
Where the paying parent’s gross income exceeds £156,000 per annum, parents often need to use a two-stage approach:
- The Child Maintenance Service carries out a maximum assessment; and
- The court may then order an additional “top-up” amount to reflect the child’s needs and the paying parent’s income.
Recent case law has provided helpful guidance on how courts approach these top-up payments.
James v Seymour [2023]
- In James v Seymour [2023], Mr Justice Mostyn, sitting in the High Court of the Family Division, provided further guidance on how top-up child maintenance should be calculated. The judgment builds on a formula he previously recommended in CB v KB [2019] EWFC 49.
- At paragraph 34 of the judgment, Mr Justice Mostyn confirmed that the James v Seymour formula is a logical starting point when assessing child maintenance in high-income cases.
- The court will still consider an income needs budget, and the judgment includes a useful example at paragraph 49 demonstrating how the court may assess that budget.
- You can read the full judgment here:
Kirsten James v Stephen Seymour – Find Case Law – The National Archives
How is top-up child maintenance calculated?
Mr Justice Mostyn set out the following formula:
E = (G × (1 − Z)) − P − (S / 0.55)
Where:
E = exigible income
G = gross income (per P60/tax return)
Z = reducing factor due to number of children living in the paying party’s household
P = pension payments currently being made
S = school fees and extras currently being paid
Once the exigible income has been calculated, this figure can then be applied to tables set out in the appendix of the judgment to calculate the Child Support Starting Place.
The exigible income is calculated by taking the paying parent’s gross earned income (from their most recent P60 or tax return) and making adjustments for:
- The number of other children living in their household
- Relievable pension contributions (annualised and deducted)
- Grossed-up school fees currently being paid
- Table 2 within the judgment also allows for a reduction where there is a shared care arrangement, for example where the paying parent has overnight contact with the children.
When the formula may not apply
The formula is not intended to be used where:
- The paying party’s gross exigible income exceeds £650,000
- There are four or more children
- The paying party’s income is largely unearned
- The paying party is primarily living on capital
In these situations, the court will instead take a broader discretionary approach.
Specialist advice for high-income child maintenance cases
High-income child maintenance claims can be complex, particularly where school fees, shared care arrangements, bonuses, pensions or non-earned income are involved. Obtaining early legal advice can help ensure that the correct approach is taken and that the child’s needs are properly reflected.
Our Family Law team regularly advises clients on:
- High-income child maintenance disputes
- Court top-up applications
- Negotiated settlements
- Variation applications
- Shared care arrangements
If you would like advice on child maintenance or any family law matter, please contact our team.
Call: 01245 228 106
Email: familyenq@gepp.co.uk
Website: www.geppsolicitors.co.uk
