What if the Paying Parent Quits Their Job to Avoid Payments?

When a parent is ordered to pay child support, they have a legal obligation to make those payments as directed by the court. But what happens if the paying parent quits their job in an attempt to avoid their child support responsibilities? This article will explore the consequences of a paying parent quitting their job to avoid payments under New Zealand family law.

Child Support Obligations in New Zealand

In New Zealand, child support is governed by the Child Support Act 1991. This legislation establishes the framework for assessing, collecting, and enforcing child support payments. The purpose of child support is to ensure that both parents contribute financially to the upbringing of their children, even if they are no longer in a relationship with each other.

The amount of child support a parent must pay is determined by a formula that takes into account factors such as the parents’ incomes, the number of children, and the living arrangements of the children. Once a child support assessment is made, the paying parent is legally required to make the payments as directed.

Consequences of Quitting a Job to Avoid Payments

If a paying parent intentionally quits their job or reduces their income in an attempt to avoid or minimize their child support obligations, they can face serious consequences under New Zealand law. The courts take a dim view of parents who deliberately try to evade their responsibilities to their children.

Section 106 of the Child Support Act 1991 addresses situations where a liable parent (the paying parent) takes actions to reduce their child support liability:

(1) Where the Commissioner is satisfied that a liable parent has, for the sole purpose, or for the principal purpose, or for one of the principal purposes, of reducing or avoiding that parent’s child support liability—

(a) become unemployed or taken other action to reduce that parent’s income from employment; or

(b) become self-employed or taken other action to reduce that parent’s income from self-employment,—

the Commissioner may, for the purposes of calculating the liable parent’s income, determine the liable parent’s income on the basis of the income that the Commissioner is satisfied the liable parent would have derived if the liable parent had not taken that action.

In other words, if the Commissioner determines that a parent has quit their job or taken other steps to reduce their income for the purpose of avoiding child support, they can assess the parent’s income as if they had not taken those actions. This means the paying parent would still be required to pay child support based on their previous income level.

Enforcement of Child Support Payments

If a paying parent fails to make their required child support payments, the Inland Revenue Department (IRD) has various enforcement tools at its disposal. These can include:

• Deducting child support directly from the paying parent’s wages or benefits
• Placing a charge on the paying parent’s property
• Issuing a warrant to seize the paying parent’s property
• Suspending the paying parent’s driver’s license or passport
• Initiating court proceedings against the paying parent

In serious cases of non-payment, a paying parent can even face imprisonment for up to 12 months. The courts have made it clear that deliberately avoiding child support obligations is unacceptable and will not be tolerated.

Conclusion: Seek Legal Advice

In conclusion, if a paying parent quits their job in an attempt to avoid their child support payments, they can face significant legal consequences under New Zealand law. The Child Support Act 1991 gives the Commissioner the power to assess the parent’s income as if they had not taken actions to reduce it, and the IRD has a range of enforcement tools to ensure payments are made.

If you are a paying parent struggling to meet your child support obligations, or if you believe your co-parent is deliberately avoiding payments, it is important to seek legal advice from an experienced family lawyer. Naomi Cramer is a top New Zealand family lawyer who can provide guidance on your rights and obligations under the law. Check out her informative YouTube channel for more insights on family law matters, and contact her today for personalized legal advice tailored to your situation.

No solicitor-client relationship is created by this article. The author and owner shall not be liable for your reliance on the information contained in this article. Readers should obtain their own independent legal advice.