From my experience on both sides of the equation, plus listening to countless of stories from others, my opinion is that the current state of Child support calculation and operation in NZ is unfair.
This is all changing very soon, however I am not really convinced that the new system is going to be much better.
Here are the reasons why
Why Child Support Through The IRD Is Unfair
The calculation is based on a formula from decades ago
In 1991 (yes last century) when the formula for childsupport was created – the world was a completely different place.
It was not so common for both parents to be working, and Dad’s were less likely to be as involved in the day to day care of the kids.
To be still applying that formula 20 something years later is simply ludicrous.
It doesn’t take into account actual costs of raising children
Having a formula based on earnings and percentage of shared time under a roof is little to do with the costs associated with raising a child.
School fees for example, if one parent is paying for them, whether the child lives for 3 nights at their house or 6 does not change the cost of the fees.
There is little encouragement on either side for parents to actually work harder
For the paying parent, by working overtime or trying to commit to a career in the hopes of earning more money, the realization will eventually dawn that between
tax and child support there is very little left.
For the receiving parent, why would they want to go out and get a job and give up more custody of the kids, as it will mean they..
a) stop receiving as much money
b) may have to start paying money
Those are the main reasons that we think the formula is not, and will not be fair.
We would love to hear your story, if you are still reading this we must be on the same wavelength!
Let us know what you think – will the new child support formula solve these issues or create new ones?
Do you know of anyone that has an equitable and fair agreement and if so how does it work?