Lifestyle Inconsistent With Income Award: How is it Decided?

Q.

I am the parent with care. I won a "lifestyle inconsistent with income" award at a tribunal but my ex-partner has refused to pay maintenance. A liability order has been granted but as she now has no income, a charge is being put on her house. I am frustated about this as it doesn't help our sons financially and she continues to lead an extravagant lifestyle.

My argument against this decision is surely the CSA is contradicting itself as the basis of the award is "lifestyle inconsistent with income". This is the 3rd liability order - the first two debts were collected by bailiffs , the 2nd one, last year, being in excess of £5000! Therefore I believe this should be the initial course of action again. Do you know who/how the course of action is decided? Is there some set down law/policy?

A.

I can understand why you’re asking the question! The CSA has discretion on this one – either they can take action in the county court to enforce a liability order or they can seize goods. I am speculating here, but the CSA may be of the view that the bailiffs would be pushed to seize eligible goods to the value required on this occasion.

Seizure of Goods

Seizing goods belonging to your ex-partner is known as ‘distress’. However, it may be that the CSA has taken the view that your ex-partner does not have sufficient or eligible assets to seize. Not all property can be seized, and items such as furniture, clothing, bedding, money, cheques and other securities for money, household equipment and basic domestic items (e.g. toasters, irons, kettles) are exempt. If your ex-partner works and, for example, needs to use her car for work, this is deemed to be an item ‘necessary for work’ in which case it couldn’t be seized.

The Powers of the CSA

The ‘Operational Improvement Plan’ (launched in February 2006 and designed to improve the performance of the CSA and collection of maintenance) provides that the CSA will use every type of sanction available to it in enforcement of liability orders, including asset seizure (which your ex-partner has already experienced), as well as removing her driving licence and even sending her to prison.

Enforcement of Liability Orders

The CSA has decided on this occasion to take county court action and to treat the unpaid child support as though it were a judgment debt i.e. as though it were an unpaid county court judgment. They must therefore be of the view that there is sufficient equity in her property to warrant this type of enforcement action. Bear in mind, also, that the CSA can now apply to the court for an order of sale, in which case the charge would be paid from the proceeds of the sale after any priority debts have been paid (e.g. a mortgage, second mortgage or ‘homeowner loan.’) In order to grant an order for sale, the court must be satisfied that your ex-partner has alternative living arrangements – in other words, they can’t simply make her homeless.