Sponsored By 
Child support lump sum payments are attractive to the payee and might improve the relationship between parents. Despite all this, they are not that common.
Child Support Lump Sum Payments
What if the father just had enough and just wants to get out of this constant bickering with the mother about money? Just pay once, pay a lump sum, and then you are done. Should you?
In this episode, Simon Bacon of Manby & Scott in Melbourne will discuss child support lump sum payments with you. How easy is it to put an end to all this child support drama by paying a lump sum? And hen does this make sense?
Here are some notes we took during the interview but Simon Bacon goes into a lot more detail. So please listen in since there are some really helpful insights to be had.
To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.
Child Support Lump Sum Payments
Lump sum payments are not as widely used as you might think since it is often hard for the payer to find the money for a lump sum. But they often improve the relationship between the parents.
With normal child support assessments, the less contact the father has with his child, the more child support he has to pay. That gives the mother a financial incentive to reduce contact hours. This incentive goes away with a lump sum payment.
Child Maintenance Trusts
At the end of the interview, will briefly go back to child maintenance trusts and discuss whether and how a CMT changes the payee’s entitlement to Family Tax Benefits A and B. We raised this question at the end of one of the previous four episodes. And the answer is different from what we thought or previously suggested.
This is the last episode in our six-part mini-series about child support. Please listen in since we haven’t covered any of the content here.
MORE
TR 98/4 Child Maintenance Trust Arrangements
Child Support Non Agency Payments
Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.
Last Updated on 19 June 2023
Tax Talks spoke to Simon Bacon - Partner at Manby & Scott - for more details.
