How to Enforce Child Support on Offshore Income

Child support (also known as child maintenance) cases can become more difficult when the non-resident parent lives or works abroad. How offshore income is taken into account when calculating child maintenance is often a concern. As is whether enforcement of payment is possible.

It is common for a parent to struggle with ensuring that offshore earnings are fairly assessed and that payments are then actually received. In this article we look at how child support on offshore income can be enforced.

The ability to enforce child support payments from a parent living abroad will mainly depend on the country in which they live. In the UK, child maintenance is normally dealt with by the Child Maintenance Service (CMS). The CMS has limited jurisdiction when the non-resident parent lives overseas, although in some cases, it can enforce payments if the paying parent works for a UK-based employer and is paid via PAYE, or the parent is employed by the UK government, armed forces, or a UK-registered company.

If the parent lives in a country that has a Reciprocal Enforcement of Maintenance Order (REMO) agreement with the UK (such as EU countries, the US, Canada, and Australia), there may also be legal ways to enforce maintenance payment. If they live in a country without a REMO agreement, enforcement becomes more difficult.

It is possible to claim backdated child support payments if they have been unpaid for a period of time. However, recovering unpaid maintenance can be challenging when the case involved offshore income and may require legal action in the country where they live.

If you are thinking about taking legal action, it is important to gather evidence of the parent’s financial situation, including offshore income, and the history of non-payment.

Offshore income, such as earnings from foreign employment, investments, or businesses registered outside the UK, can present unique challenges in child maintenance cases. The CMS does not automatically include offshore income in its assessments, but there are legal options for enforcement.

1. Applying for a Variation in CMS Calculations. If the paying parent has offshore income, the receiving parent can request a variation of the CMS assessment. This applies in cases where the paying parent receives dividends or salary from a company registered offshore; has significant assets or investments held abroad; and/ or is using offshore accounts to hide their actual income.

The CMS can request evidence of offshore earnings and, if necessary, adjust the maintenance calculation. However, if the paying parent does not cooperate, legal enforcement may be required.

2. Using the Courts for Enforcement. If the CMS is unable to enforce offshore income, parents may need to seek a court order for maintenance. UK courts have jurisdiction in some international cases, particularly if the paying parent has UK-based assets that can be seized; the parent maintains significant ties to the UK (e.g., owns property or has business interests); the parent has dual residency or frequently returns to the UK. A freezing order may be applied to prevent the transfer of funds offshore while the case is ongoing.

3. Enforcing Maintenance Through International Legal Agreements. If the non-resident parent is living in a country with a REMO agreement (see below), enforcement can be sought through international legal mechanisms.

A Reciprocal Enforcement of Maintenance Order (REMO) is a legal agreement between the UK and certain other countries that allows for the enforcement of child maintenance payments across borders.

If the receiving parent applies for child support enforcement through REMO the court will send the maintenance order to the relevant country’s authorities. The foreign court will then recognise and enforce the order under its own legal system.

The paying parent will be required to make payments as per the order, and enforcement actions (such as wage deductions or asset seizure) may be taken if they fail to comply.

REMO agreements exist with a wide range of countries, including EU member states, United States, Canada, Australia, and many Commonwealth nations. However, if the paying parent lives in a country without a REMO agreement, enforcement becomes more difficult, and private legal action in that country may be necessary.

Enforcing child support when offshore income is involved can be legally complex, but options are available. While the CMS has limitations in assessing offshore income, variations can be requested to ensure fair calculations. Legal action, including court orders and REMO agreements, can help enforce maintenance in international cases.

If you are struggling to secure child support from a parent with offshore income, seeking expert legal advice is essential.

Our team of family law solicitors in Milton Keynes can guide you through the process, ensuring your child receives the financial support they are entitled to. We also have offices in Watford, Bicester and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.