Schedule 1 to the Children Act 1989 (Schedule 1) was intended to make financial provision for the children of unmarried parents when they separated. Under this schedule the Court can make financial orders for child maintenance, a capital lump sum or a transfer or settlement of property for the purpose of providing for the children. The Court can also make orders for maintenance and lump sum for children over the age of 18 in full time education or where special circumstances, such as disability, exist.
In making a decision in relation to an application for provision under Schedule 1, the Court has regard to ‘all the circumstances of the case’ including the following factors:
- The parents’ earning capacity, property and other financial resources
- The parents’ needs, obligations and responsibilities
- The financial needs of the child
- The income, earning capacity, property and other financial resources of the child
- Any physical or mental disability of the child
- The manner in which the child is being, or is expected to be educated
Traditionally, many of the applications heard under this Schedule are ‘big money cases’ however, there are now examples where the Court has considered applications where the parent does not have enough assets to meet both their own needs and those of the child. In such cases, there have been examples of the Court prioritising the needs of the child over the parent. Therefore, it seems that Schedule 1 applications are no longer just for the wealthy, and that lump sums and settlements of property can be made where assets are limited and do not exceed needs. Recent cases show that the court will take into account the parents’ resources and standard of living in determining the size of the award and that in cases of limited finances, orders can still be made however, the size of the award will reflect the limited resources that are available.
Recent data produced by the Office for National Statistics shows that the fastest growing family type in the UK is cohabiting couples both with and without dependant children. Considering recent social trends and recent cases, it seems that Schedule 1 has a far wider reach than first anticipated. It is envisaged that many unmarried parents will be able make an application under Schedule 1 to meet the needs of their children, not just the rich and famous.
Our specialist team can advise on applications about financial provision for your children. Consulting our specialist lawyers in our Altrincham or Manchester offices is a great first step. Please contact us on 0161 927 3118 for a free 20 minute consultation.