Child maintenance and redundancy

[Toomuchchange]

Has anyone got experience of their ex taking voluntary redundancy?
We have been divorced two years and I am clear I have no claim to any lump sum redundancy monies.
But his payout (which is significant as he is both a higher earner and has worked at the company for a long time) includes monies to cover his six month notice period (PILON).
I am expecting our agreed child maintenance (two primary school aged children) to continue to be paid for the six months notice period he has been paid.
Acter which if he has no job then maintenance would stop until he secures a new role.

(We have agreed child maintenance as part of consent order and calculate it based in the gov.uk calculator. It does not go through CMS).

Is this a reasonable expectation? Any advice?

Speak to your ex. No he isn’t obliged to pay anything if he isn’t employed, but if he’s always been reasonable then he may well chose to continue to be so.

I know he is not obliged to pay out of his lump sum.

But I guess I'm asking - is any payment in lieu of notice he receives still considered income? (and therefore CM is still payable)

No. It is not considered income. Redundancy pay is not taxed in the same way as employment income and so doesn’t count for CMS purposes.

www.legislation.gov.uk/uksi/2012/2677/regulation/37/made

www.stowefamilylaw.co.uk/blog/2019/11/20/redundancy-not-child-support/

That’s not completely accurate. PILON, outstanding holiday pay and bonuses ARE taxable therefore should be counted towards CM

Here’s the link
www.moneyhelper.org.uk/en/work/losing-your-job/do-you-have-to-pay-tax-on-your-redundancy-payout

Thanks.

In any event with CMS his income at the time of the claim is what is relevant. So he won’t be compelled to pay for redundancy already received if you’re not already using CMS.

Thank you

So as PILON is taxable, then it a considered income/earnings and not "redundancy". Therefore CM is payable.

That's very helpful.

Thanks

No intention to use CMS. So hopefully this won't be an issue.

Thanks

I think it is a grey area. If he doesn't have an income he doesn't need to pay. You can take him to court to enforce payment but he can then open a case with CMS that will award a nil amount. CMS supersedes the court order after 1 year.

I don’t understand the desire to know CMS
rules if you’re not using CMS?