Under a Schedule 1 application, the Court is able to make a variety of Orders. These include Orders for;
- Periodical payments
- Secured periodical payments
- Lump sum
- Property transfer
- Settlement of property
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An Order under Schedule 1 can be made against a ‘parent’ on the application of a parent, guardian, special guardian or any person in whose favour a residence order is in force. ‘Parent’ is defined as a biological parent or other persons who are parents by virtue of the law. If successful, a lump sum reward would either be made to the applicant for the benefit of the child, or to the child directly.
Previously thought of as an application only used in ‘big money’ cases, it is now clear that Schedule 1 applications are increasingly being used across a variety of cases.
Schedule 1 applications usually involve a lump sum element, this is discussed further below.
Lump Sum Schedule 1 Applications It is possible to apply to the Court, by virtue of Schedule 1 of the Children Act 1989, for a lump sum Order for the benefit of a child. This application is primarily used by unmarried parents, who are unable to obtain a lump sum Order under the Matrimonial Causes Act 1973, and who need to obtain a lump sum for various expenses in addition to child maintenance received.
The Court will take into account a number of factors set out at Section 4(1) of Schedule 1, when deciding whether to award a lump sum. These are: –
(a) the income, earning capacity, property and other financial resources which each person has or is likely to have in the foreseeable future;
(b) the financial needs, obligations and responsibilities which each person has or is likely to have in the foreseeable future;
(c) the financial needs of the child;
(d) the income, earning capacity (if any), property and other financial resources of the child;
(e) any physical or mental disability of the child;
(f) the manner in which the child was being, or was expected to be, educated or trained.
Lump sum Orders are often ordered in conjunction with a property transfer Order, however, it is possible to obtain a standalone lump sum Order. Common examples of the purpose of lump sums Orders include for furnishing a property, the purchase of transportation or dental/medical fees.
Lump sum Orders can also be applied for in certain limited and exceptional circumstances where the child is over the age of 18, for example where the child has a disability. They can also be sought more than once, you are not barred from making another application when a lump sum Order has already been obtained.
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