Child maintenance

[FROSTY:Me]

The bit I just cannot get my head around is how the costs to raise a child are asessed. Its easy when for example a couple breaks up and theres one child staying with one parent.(child A) But if the non custodial parent has another child (child B) then it all goes out the window. Somehow their formula calculates that child A costs $200 a week to feed/clothe etc yet child B) costs $25 a week --How on earth can they get that number

[Winston001]

The bit I just cannot get my head around is how the costs to raise a child are asessed. Its easy when for example a couple breaks up and theres one child staying with one parent.(child A) But if the non custodial parent has another child (child B) then it all goes out the window. Somehow their formula calculates that child A costs $200 a week to feed/clothe etc yet child B) costs $25 a week --How on earth can they get that number

The answer is that the Child Support formula is a rough and ready calculation designed to fit all. From memory it was drawn from the British model which had an 80% collection rate in the 1990s.

A liable parent on $50k would pay $124.50/wk for one child and $166.00/wk for two children. That is an extra $41 for the second child.

The reason the second child isn't a lot more is because the basic costs of having a household do not change with one or two extra children. The rent is the same, as is the phone, insurance etc etc. So the additional cost of an extra child is relatively small.

Bear in mind that the LPC formula is just a system set up for simplicity. It isn't fair in every situation but there is a right to ask the Court to adjust the payment. For example if a father has given the whole house to his wife so she has a home for the children, his liability can be reduced. I've seen this happen.

[Winston001]

The example of my mate (who is definately not in arrears or paying penalties) who pays IRD $600 per month while his ex receives $380...........

Who's pocketing the other $220 per month?

When I first split up with my ex I paid more per week, than she got in total. And I mean total. It's fuckin wrong

My mate John was in this position. When they separated, he had to pay a huge amount to Winz, as he is a big earner, which was far more than she was paid by them.

Ok. I am at a complete loss to explain the above. I have never heard of or met a man who pays more Liable Parent Contribution to IRD than his wife/partner receives. I have always understood that if the payment exceeds the DPB the extra money gets passed on to the mother.

The exception is where there are penalties which I think are kept by IRD to partly compensate the taxpayer. Happy to be proved wrong - can anyone point to IRD policy or something?

[Lissa]

I think the perception of who should be the main care giver should NOW change. When I was young my Dad was the breadwinner, working long hours and generally doing blokey things, and not really having alot to do with me (just his generation) My mum stayed at home and looked after four kids, baked biscuits and did the housework. If they had broken up then of course I would have gone with my mum and dad would have to have paid child support.

Its totally different now, hardly anyone should be on the DPB - I see nothing wrong with solo mums going to work once the child is five AS LONG as they can get child care for free.... or the father of the children has the exact responsibility to find or pay for Childcare so she can go out to work and can stand on her own two feet. (and visa versa if the father has custody) It takes two to make a child and it is the responsibility of BOTH parents to raise that child.

[FROSTY:Me]

It takes two to make a child and it is the responsibility of BOTH parents to raise that child.

Now that is a whole other discussion.

[Winston001]

It takes two to make a child and it is the responsibility of BOTH parents to raise that child.

Nope nope nope - it takes a village to raise a child - I read it on the net so it must be true!! So if you live in a city, bad luck. Move to Ekatahuna.

[Forest]

My mates refer to child maintenance payments as STDs.

Sexually Transmitted Debt.

[PrincessBandit]

My mates refer to child maintenance payments as STDs.

Sexually Transmitted Debt.

Charming. Does he refer to his own kids as such? (if he has any). Tbh, all kids basically put us in debt - even the ones still in a house where mum and dad are in a stable relationship.

[Bald Eagle]

Not quite on the same wavelength, methinks.

The example of my mate (who is definately not in arrears or paying penalties) who pays IRD $600 per month while his ex receives $380...........

Who's pocketing the other $220 per month?

The extra $220 per month is the state penalty for separation. Financial equity is overruled by social engineering.

[Mudfart]

lol STD's! so, if i move to Oz and work my ass off, I wont get stung unless i try to get back into NZ? why would i try crawl back up the arsehole?

[St_Gabriel]

Sorry to tell you mudfart, Aussie and NZ have reciprocal agreements, they will ask you for the money then if you choose not to pay, they politely ask the ATO (Australian tax office) to garnishee your wages. Or at least thats how it works in reverse.

[Mudfart]

how about UK? I have a Brit passport, and can I live and work in Canada with it?

[Winston001]

Ok. I am at a complete loss to explain the above. I have never heard of or met a man who pays more Liable Parent Contribution to IRD than his wife/partner receives. I have always understood that if the payment exceeds the DPB the extra money gets passed on to the mother.

The exception is where there are penalties which I think are kept by IRD to partly compensate the taxpayer. Happy to be proved wrong - can anyone point to IRD policy or something?

In the absence of any reply to the above I contacted Child Support today. They confirmed that where there is an overpayment, the extra money goes to the custodial parent. So people who say they pay more than their ex-partners benefit but the money disappears, need to look for another explanation.

I'm not suggesting anyone is making up stories, child support can get complicated for the payer particularly if a payment is missed.

The nub of the matter is IRD do not keep any extra money (leaving aside penalties), nor do they charge admin fees.

[kit]

In the absence of any reply to the above I contacted Child Support today. They confirmed that where there is an overpayment, the extra money goes to the custodial parent. So people who say they pay more than their ex-partners benefit but the money disappears, need to look for another explanation.

I'm not suggesting anyone is making up stories, child support can get complicated for the payer particularly if a payment is missed.

The nub of the matter is IRD do not keep any extra money (leaving aside penalties), nor do they charge admin fees.

If that is true then that would mean the that extra money is taken into account as earning's over and above the DPB which must result in it affecting that persons benefit. As a working mother, when it comes to the end of the yr, i have to take into account (apparently) my extra earnings (child support) the minimum amount that i get (If I get any), because as far as they are concerned it is classed as part of my earnings. But on the other side of it IRD also tell you not to take it into account and rely on it as I may not recieve it! Yet they want you to estimate it for your family assistance entitlement.

Coming to an agreement outside of IRD is the way to go, if both parties can come to agreement that way they know exactly where they stand.