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Child Support Act 1991

Jurisdiction of courts in relation to child support and domestic maintenance - Orders for provision of child support in form of lump sum

111: Effect of lump sum orders on formula assessment of child support

You could also call this:

"How a big one-time child support payment affects regular payments"

When the Family Court decides that a parent needs to pay child support as a lump sum, they can say that this payment should count towards the regular child support payments the parent has to make. Here's how it works:

The court will tell the Commissioner (the person in charge of child support) about their decision. The Commissioner will then change the amount of regular child support the parent has to pay to reflect the lump sum payment.

When working out future child support payments, the Commissioner will:

  1. First, figure out how much child support the parent would normally have to pay.
  2. Then, lower this amount by the amount or percentage the court said to use.
  3. Use this new, lower amount to work out the parent's child support payments.

This means that if you're ordered to pay a lump sum for child support, it can reduce the regular payments you have to make in the future.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM255367.

Topics:
Family and relationships > Children and parenting
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"How lump sum payments affect regular child support payments"

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Part 7Jurisdiction of courts in relation to child support and domestic maintenance
Orders for provision of child support in form of lump sum

111Effect of lump sum orders on formula assessment of child support

  1. If the Family Court makes an order under section 109 that includes a statement that the child support ordered to be provided by the liable parent is to be credited against the liable parent's liability under any relevant formula assessment, when the decision of the court making the order becomes final, the Commissioner shall, as soon as practicable, take such action as is necessary to give effect to the order in relation to any relevant formula assessment that has been made (whether by amending the assessment or otherwise).

  2. In subsequently making a relevant formula assessment, the Commissioner shall—

  3. calculate what would, apart from the application of the order, be the annual rate of child support payable by the liable parent to the receiving carer entitled to child support; and
    1. reduce that annual rate by the amount or percentage specified in the statement included in the order under section 110(3); and
      1. make the assessment on the basis of that reduced annual rate.

        Compare
        • Child Support (Assessment) Act 1989 s 127 (Aust)
        Notes
        • Section 111(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
        • Section 111(2)(a): amended, on , by section 34 of the Child Support Amendment Act 2013 (2013 No 12).