The Child Support Departure Direction and Consequential Amendments Regulations 1996

[F1 Debts incurred before the absent parent became an absent parent E+W+S

16.— (1) Subject to paragraphs (2) to (4), repayment of debts incurred—

(a) for the joint benefit of the applicant and the non-applicant parent;

(b) for the benefit of the non-applicant parent where the applicant remains legally liable to repay the whole or part of that debt;

(c) for the benefit of any person who at the time the debt was incurred—

(i) was a child;

(ii) lived with the applicant and non-applicant parent; and

(iii) of whom the applicant or the non-applicant parent is the parent, or both are the parents; or

(d) for the benefit of any child with respect to whom the current assessment was made,

shall constitute expenses for the purposes of paragraph 2(2) of Schedule 4B to the Act where those debts were incurred before the absent parent became an absent parent in relation to a child with respect to whom the current assessment was made and at a time when the applicant and the non-applicant parent were [F2 a couple] who were living together.

(2) Paragraph (1) shall not apply to repayment of—

(a) a debt which would otherwise fall within paragraph (1) where the applicant has retained for his own use and benefit the asset the purchase of which incurred the debt;

(b) a debt incurred for the purposes of any trade or business;

(c) a gambling debt;

(d) a fine imposed on the applicant;

[F3 (e) unpaid legal costs in respect of—

(i) separation or divorce from the non-applicant parent;

(ii) separation from the non-applicant parent or the dissolution of a civil partnership that had been formed with the non-applicant parent;]

(f) amounts due after use of a credit card;

(g) a debt incurred by the applicant to pay any of the items listed in sub-paragraphs (c) to (f) and (j);

(h) amounts payable by the applicant under a mortgage or loan taken out on the security of any property except where that mortgage or loan was taken out to facilitate the purchase of, or to pay for repairs or improvements to, any property which is the home of the parent with care and any child in respect of whom the current assessment was made;

(i) amounts payable by the applicant in respect of a policy of insurance of a kind referred to in paragraph 3(4) or (5) of Schedule 3 to the Maintenance Assessments and Special Cases Regulations M1 (eligible housing costs) except where that policy of insurance was obtained or retained to discharge a mortgage or charge taken out to facilitate the purchase of, or to pay for repairs or improvements to, any property which is the home of the parent with care and any child in respect of whom the current assessment was made;

(j) a bank overdraft except where the overdraft was, at the time it was taken out, agreed to be for a specified amount repayable over a specified period;

(k) a loan obtained by the applicant, other than a loan obtained from a qualifying lender or the applicant’s current or former employer;

(l) a debt in respect of which a departure direction has already been given and which has not been repaid during the period for which that direction was in force except where the maintenance assessment in respect of which that direction was given was cancelled or ceased to have effect and, during the period for which that direction was in force, a further maintenance assessment was made in respect of the same applicant, non-applicant and qualifying child with respect to whom the earlier assessment was made; or

(m) any other debt which the Secretary of State is satisfied it is reasonable to exclude.

(3) Except where the repayment is of an amount which is payable under a mortgage or loan, or in respect of a policy of insurance, which falls within the exception set out in sub-paragraph (h) or (i) of paragraph (2), repayment of a debt shall not constitute expenses for the purposes of paragraph (1) where the Secretary of State is satisfied that the applicant has taken responsibility for repayment of that debt, as, or as part of, a financial settlement with the non-applicant parent or by virtue of a court order.

(4) Where an applicant has incurred a debt partly to repay a debt or debts repayment of which would have fallen within paragraph (1), the repayment of that part of the debt incurred which is referable to the debts repayment of which would have fallen within that paragraph shall constitute expenses for the purposes of paragraph 2(2) of Schedule 4B to the Act.

(5) For the purposes of this regulation—

(a) “[F4 couple]" has the meaning set out in regulation 1 of the Maintenance Assessments and Special Cases Regulations;

(b) “non-applicant parent" means—

(i) where the applicant is the person with care, the absent parent;

(ii) where the applicant is the absent parent, the partner of that absent parent at the time the debt in respect of which the application is made was entered into;

(c) “qualifying lender" has the meaning given to it in section 376(4) of the Income and Corporation Taxes Act 1988 M2 ;

(d) “repairs and improvements" means major repairs necessary to maintain the fabric of the home and any of the measures set out in sub-paragraphs (a) to (j) of paragraph 2 of Schedule 3 to the Maintenance Assessments and Special Cases Regulations (eligible housing costs) and other improvements which the Secretary of State considers reasonable in the circumstances where those measures or other improvements are undertaken with a view to improving fitness for occupation of the home.]

Textual Amendments

F1 Instrument Regulations revoked (coming into force in accordance with reg. 1(4) of the amending S.I.) by The Child Support (Meaning of Child and New Calculation Rules) (Consequential and Miscellaneous Amendment) Regulations 2012 (S.I. 2012/2785), reg. 10(d)

F2 Words in reg. 16(1) substituted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 4 para. 6(2)(a) (with art. 3)

F3 Reg. 16(2)(e) substituted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 4 para. 6(2)(b) (with art. 3)

F4 Word in reg. 16(5)(a) substituted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 4 para. 6(2)(c) (with art. 3)

Marginal Citations

M1 Paragraph 3(4) was amended by S.I. 1995/1045 and paragraph 3(5) by S.I. 1994/227.

M2 1988 c.1.