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Tax credits as a safety net if faced with divorce.

Tax credits as a safety net if faced with divorce.

The announcement by George Osborne in his Autumn statement that the planned abolition of tax credits for the low paid and child tax credits in April will ensure divorcing couples retain a safety net that should limit the need for many harsh divorce finance battles. Michael Brennan, a finances in divorce specialist at Stonehewer Moss in Cheshire believes in Tax credits as a safety net if faced with divorce and  said, ” The tax credit is vital for many people who innocently find themselves in financial turmoil through a divorce because the family finances and been structured in such a way as to make her depend on the flow of income from her spouse that is abruptly turned off. Had Mr Osborne pushed through the planned changes many desperate people would have had to apply for interim maintenance orders at Court in  what is already a stressful time in his or her life. The tax credit is a safety net that such persons can look to in this time of need”.

Interim maintenance may nevertheless be needed if the family budget still is not covered by the income of the divorcing spouse and her tax credits. negotiation should always be attempted but mortgage lenders may not wait and an application will be favourably considered by the Court if there is a genuine need while the Court looks to arrive at a just outcome. Drawing up a budget in the early months of separation may be the first time many have considered the cost of day to day life and excess of expense over income is common. The court will seek to be just between the parties but the needs of children must be considered and child support should be paid using the statutory formula. As the government now encourages parted couples to agree child support, failure to do so gives legitimate grounds for seeking interim maintenance in divorce.

Legal costs can be sought against the paying spouse if the Court grants the application.

For advice, representation and negotiation through divorce contact Michael by telephone on 01606 872200 or e mail Michael.brennan@stonehewermoss.co.uk. visit www.stonehewermoss.co.uk

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Stonehewer Moss Family Solicitors, Citadel House, Solvay Road, Northwich, Cheshire, CW8 4DP

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