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Another step forward in surrogacy reform
This morning, Thursday 6 June, the Law Commission released their consultation paper on surrogacy reform, and their thoughts, proposals and recommendations make up a 498 page report
At the time of writing, I haven’t read the report cover to cover yet despite getting a sneak preview a couple of days ago, however, by way of a summary the Law Commission has covered every aspect of this complex area in law, and I have broadly summarised their proposals as follows:
A new pathway to legal parenthood
This is designed to create the possibility of the intended parents being recognised as the legal parents of a child born through surrogacy from the time of birth. It focuses on the intentions of those involved and won’t require the intended parents to make an application to the Court. There will be safeguards in place, for example, if the surrogate objects to the agreement following the birth but it is designed to ensure there is more legal certainty for all those entering into surrogacy arrangements in the UK.
A continuation of the existing parental order process
The parental order route will remain in circumstances where the new pathway doesn’t apply, and this will largely cover international arrangements. This will remain similar to current Court process, but the Law Commission is proposing some changes to the existing criteria and processes to achieve further clarity for intended parents and to make the process easier overall.
Greater regulation is proposed for surrogacy arrangements
This suggests that surrogacy organisations could be regulated and could then oversee the arrangements which fall inside the new pathway.
A national surrogacy register
A national surrogacy register is suggested which will record the details of the surrogate, the intended parents and any egg/sperm donor involved in the arrangement. This will be accessible to surrogate children, with non-identifying information being available at the age of 16 and identifying information at the age of 18.
Payments
The report identifies the difficulties and contrasting views of those already consulted in relation to surrogacy payment. As a result, they have not yet been able to make any provisional proposals on this. However, they have commented on the different categories of payments which they propose that a surrogate may be able to receive and seek views on whether these payments should be allowed.
These categories of payments are:
- Compensation for pain, inconvenience, medical complications or death of the surrogate
- Loss of earnings from being a surrogate
- Essential costs of a pregnancy
- Additional costs of a pregnancy
- Costs associated with a surrogate pregnancy
- Gifts
- Compensation for loss of welfare entitlement
Nationality/passports
It proposes streamlining and shortening the process to obtain a passport/a visa in international surrogacy cases.
Next steps
Within the report, 118 questions are asked of the public in respect of their proposals, and a formal consultation period will now begin. This culminates on 27 September 2019 and so if you would like your view, now is the time to act.
Here at Stowe Family Law, the surrogacy team will certainly be putting forward their views and comments, and if you have any questions about the report or any of the wider legal issues please do not hesitate to get in touch with me at [email protected]
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Author: Bethan Carr
What a ‘Living Wage’ Actually Means
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Addressing specific property division questions
When’s the last time you had an accurate and up-to-date accounting of all your financial accounts? This could include a 401(k), savings account or other financial assets. It could also mean the status of your liabilities, like credit card accounts or auto loans. If you aren’t able to answer these questions off the top of your head – you’re not alone.
When you’re going through a divorce, it’s important to get a full understanding of these questions or more. In order to fully understand your property division issues in your case, it is important to know the status of all marital property assets and liabilities to understand what a fair and equitable asset division would look like. Even missing or undervaluing one account could shift the entire perception of the process.
At our law firm, we work with our clients to attempt to ensure that there is a full accounting of all financial accounts that are between spouses. Sometimes, a hidden account makes itself known. Maybe you have a specific goal that you want to accomplish with the property division process? It is important to approach that particular initiative and understand what a realistic approach might be to achieve it.
A divorce case can be complicated. The dissolution of a marriage is exactly what it sounds like – the dissolution of what was built between a couple. Whether you’ve been married two years or 20, there can be many questions associated with the divorce and, specifically, with property division. Ensure that you are achieving everything you want with a tailored approach to your divorce and property division.
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Author: On behalf of Katie L. Lewis of Katie L. Lewis, P.C. Family Law
Father required to pay more child support after breakdown of contact
If a non-resident parent (‘NRP’) enjoys shared care of a child (i.e. an average of at least one overnight stay a week) then the amount of child support maintenance that they are required to pay will be reduced, with the amount of the reduction depending upon the number of nights per year that the child spends with the NRP. Accordingly, for example, if the child stays with the NRP for between 52 and 103 nights per year then the maintenance is reduced by one-seventh, if the child stays with the NRP for between 104 and 155 nights per year then the maintenance is reduced by two-sevenths, and so on.
But what if a court has ordered that the child should spend a sufficient number of nights with the NRP to warrant a reduction in the child maintenance, but the order is not being complied with – what is the effect of this upon the amount of child maintenance that the NRP is required to pay? This was the question facing the Upper Tribunal in the recent case EA v Secretary of State for Work and Pensions and SA.
The relevant facts of the case may be stated quite simply (in fact, I am going to simplify them even further, for the sake of clarity). The mother and the NRP (I shall call him that, rather than ‘the father’, for the sake of consistency) had two children, one of whom is grown up, and the younger of whom is now aged 13. The parents divorced in 2013, and on the 31st of May 2013 the court made an order providing for the father to have overnight contact with the younger child, including alternate weekends from Thursday to Mondays, and additional holiday dates. However, by at least October 2015 the contact arrangements had broken down, as a result of which the NRP was not enjoying the overnight contact set out in the order. This was against the NRP’s wishes, the mother claiming that contact stopped because the child didn’t want it, and had run away one weekend to avoid contact.
Meanwhile, in August 2016 the Child Maintenance Service (‘CMS’) made a decision about the level of child support maintenance that the NRP was liable to pay with effect from the 24th of July 2016. The amount included a reduction for shared care, based upon the terms of the contact order. The mother requested that the decision be reconsidered, and as a result the decision was revised on the 1st of November 2017. The effect of the revision was to increase the payments by the NRP, because the deduction for shared care was removed, in the light of the fact that the overnight contact was not actually taking place.
The NRP appealed. The First-tier Tribunal rejected the appeal, and the NRP appealed again, to the Upper Tribunal.
The Upper Tribunal also refused the appeal. Whilst the regulations state that, when considering the issue of shared care, the CMS must consider the terms of any court order providing for contact between the NRP and the child, there is no obligation to determine shared care solely on the basis of the provisions in that court order. The weight to be attached to the court order is for the CMS to decide. They are also entitled to take into account evidence that the provisions of the order do not accurately reflect the number of nights for which the NRP is expected to have overnight care of the child during the relevant 12 month period. It is not the intention of the child support legislation that the contact arrangements set out in the court order must take precedence over the actual overnight contact, no matter how old the court order was or how long it had been ineffective. The deduction for shared care is to reflect the respective costs of caring for the qualifying child borne by the parent with care and the NRP, and to do otherwise would not be in the interests of the child, or in accordance with the policy intention of the deduction for shared care.
Here, the First-tier Tribunal had concluded that “there was likely to be no or limited overnight care in the 12 months from the effective date”, and that determined the matter. The Upper Tribunal judge concluded with the following:
“I can understand [the NRP’s] frustration. He wishes to see his son, and would like [the mother] to facilitate that. He considers it is in the best interests of his son to have contact with him, and feels it is unfair that he pays additional child maintenance, having lost credit for shared care because contact ordered by a court is not happening. However, if [the NRP] is not content with the present level of contact, he has avenues of recourse in the courts available to him.”
You can read the full report of the case here.
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Author: John Bolch
Homemade Turkish Salad Recipe — Frugal, Paleo, Vegan, and Delicious
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Why an Inflatable Hot Tub is Worth the Cost
A soft hot tub or inflatable hot tub
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Is your surname different from your children? Then you need to read this before you travel abroad…
It’s fast approaching peak holiday season for UK families as the schools get ready to close for the six-week break. Travelling with kids can be tricky at the best of times but for those parents who do not have the same surname, it is a lot more complicated.
Emma Newman, the Managing Partner at the Stowe Family Law office in Esher explains what a parent can do about it.
“I first wrote on this subject four years ago and since then have received an inordinate number of questions on this subject. More and more women seem to be affected by this issue as more of us have a different surname to our child. Some, like me, may be divorced from their child’s father and have remarried taking on a new name. Other women are married but have chosen not to take their husband’s surname whilst their children do and of course, there are more and more unmarried couples who have children.
Many of us are now looking forward to enjoying some time away in the sunshine as the summer holiday approaches but if you have a different surname to that of your child you need to take note and take action to avoid unnecessary stress.
The checks that are in place at ports, airports and international railway stations to prevent children from being kidnapped are all very understandable but they have caused a huge amount of stress, upset and even missed flights for many women and their children. This can easily be avoided by ensuring you carry the right documents.
So, what can you do to ensure your holiday goes smoothly? Much depends on your particular circumstances but the officials need to be satisfied with your relationship with your child so the documents you may need are:
Your child’s Birth Certificate – this document gives the name of your child, their date and place of birth and will match with the details on their passport. It will also give the full names of both parents at the time of their birth. So be careful; if your name has changed since your child was born you will need to take more documents with you.
Proof of your change of name – this could mean travelling with your Marriage Certificate or a Change of Name Deed. On my last trip abroad I also found carrying an expired passport in the name I held at the time of my child’s birth (and therefore as set out in his birth certificate) was very useful as not only did it show what my name was then but it also had a photograph of me and the Border Official was able to marry up the Birth Certificate, Marriage Certificate and the expired and current passports.
You might also want to warn your children that they may be asked questions directly by the immigration officials and they should not be worried and answer clearly and honestly. This is not the time for them to make jokes. When I have been stopped at immigration my son was asked who I was, who my husband was, where he had been and how old he was. It was made very clear that he needed to answer himself and I couldn’t answer for him.
If you are not travelling with your child’s father I would always ensure that you can prove you have the father’s consent to you taking the child abroad.
If there is a Child Arrangements Order in place which states that the child lives with you, technically you only need to obtain the other parent’s consent if you are going to be out of the UK for more than 28 days.
However, in every other case, you should have the permission of every other person with parental responsibility for the child. If you don’t have this consent or a Court order, you are committing child abduction.
I always recommend asking the other parent to sign a consent form before travel or to write a letter setting out their consent. The document should provide the full contact details of the other parent and specific details of the trip including the dates, destination and address. The other parent should sign the form. It is also a wise idea to attach a copy of the other parents’ passport to the consent form.
Travelling abroad with children can be stressful enough. However, you can minimise some of the costs by ensuring you have enough space in your luggage to pack these multitude of documents. Happy holidays!
The post Is your surname different from your children? Then you need to read this before you travel abroad… appeared first on Stowe Family Law.
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Author: Emma Newman
Stowe guests: Tax and divorce by Sofia Thomas Limited
In this instalment of Stowe guests, we catch-up again with Sofia Thomas from Sofia Thomas Limited.
A specialist tax consulting services to law firms, family offices and high net worth individuals, Sofia has worked in financial service for over a decade and has previously consulted for Google.
She joins us on the blog today to share her answers to some of the most common question she receives from clients regarding divorce and tax.
In my last guest blog for Stowe Family Law I shared some top tax tips to consider when getting divorced. In this piece I thought it might be helpful to pull together a list of the most common questions client’s ask me.
Do I need to consider tax on my divorce?
The big money questions! I have pulled together a high-level flow chart for Stowe blog readers to provide some guidance on this question. Clearly, it’s not possible to cover all eventualities, however, I have considered the most common issues. In situations where there may be some tax implications I’ve included some questions which I hope will assist you in raising this with your solicitor or tax advisor.
Will my settlement be taxable in the UK?
No, divorce settlements are not taxable in the UK. This is the same for deferred settlements. If a deferred settlement is paid late and there is interest due on the late payment, the interest only may be taxable. For example if you divorce in 2020 and per the consent order your £200,000 settlement will paid to you by December 2021. There may be a clause in the consent order, that if not received by this date there will be interest due on the late payment at 3%.
Assuming you finally receive the settlement by June 2022 you would received £200,000 plus £3,000 in late payment interest. The £3,000 interest only will be assessed to tax.
What if my settlement is tied to the sale of an investment property we both own?
If you are the joint owner of a property which is going to be sold after the divorce and your settlement proceeds will be funded from this sale then there will be a potential tax liability. You will be taxed on your percentage of the gain. The capital gains tax rates for property in the UK are 18% (if you earn under £46,000) and 28% (if you earn over £46,000 or if the value of the gain would take your income to over £46,000).
Each individual in the UK has a capital gains tax annual allowance of £12,000 (for 2018-19) which reduces any taxable gain.
By way of simplified example if you sold a shared property for £500,000, if you owned 50% of the property you would need to report the portion of the gain which relates to your ownership of the property.
For example, see the simplified capital gains tax calculation below;
Simple Capital Gains Tax Pro Forma | |
50% | |
Sale Price | £250,000 |
Purchase Price | (£125,000) |
Less all costs – selling costs – purchase costs – improvements to the property |
(£5,000) |
Total Gain | £120,000 |
Less Annual Allowance | (£12,000) |
Taxable Gain | £108,000 |
Capital Gains Tax Payable at 28% | £ 30,240 |
This gain must be reported on a tax return and paid to HMRC. If your settlement is funded by the sale of a joint property after the divorce one option available to you, is to seek advice on the potential capital gains tax liability and then request an indemnity against this in the consent order.
We are selling our main home will there be capital gains tax to pay?
In the UK there is a relief called Principal Private Residence relief (PPR), this relief allows you sell your main home without paying tax on the gain if you meet certain conditions. The main conditions are
- You have lived in the property as your main home for the whole time you have owned it
There is an addition to this relief which allows the relief to continue for an additional 18 months after the you have left the home. Note that this 18-month extension may be reduced to 9 months from April 2020.
In simple terms if you have both lived in your house as your main home for the whole time you have owned it then principal private residence relief should be available to exempt the total gain, so that no tax is payable. If one spouse has moved out of the martial home but it is sold within 18 months from the date they moved out, again no tax should be payable.
If you have not lived in the home the whole time you have owned it or have multiple properties you should seek further advise. Additionally, if you have been absent from the home for over 18 months there are some reliefs which may be available to reduce any taxable gain but you should seek advice on this.
You can find out more about Sofia Thomas Limited by visiting the website here.
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Author: Stowe Family Law
Do we need a code for solicitors dealing with children disputes?
The other day I came across a tweet from a well-known and very highly regarded family lawyer. She said that she had just attended a meeting of various groups regarding how resolving child arrangements on separation could be more child-focused, and that one strand of the discussion was the role solicitors can or do play in inflaming conflict. She asked how we could change that, and said: “If there were a Code, what would it include?”
But do we need a code for solicitors dealing with children disputes?
The answer, I think, is that we already have one. Or two, to be precise (not including various other available guides).
The first code in time was created by Resolution, the association of family lawyers. Their Code of Practice specifically tells members of the association that they should “Reduce or manage any conflict and confrontation; for example, by not using inflammatory language”, and “Support and encourage families to put the best interests of any children first.” Those two brief statements seem to say all that is really needed, both to deal with the issue of inflaming conflict, and to make sure that discussions regarding arrangements for children are child-focused. You can read the current version of the Code here.
Of course, the Code only applies to members of the association, and not all family law solicitors are members. However, all are members of the Law Society, which also has a code, albeit that it goes under a different name: the Family Law Protocol.
The Family Law Protocol specifically states that it endorses the Resolution Code of Practice, and says that the Protocol should be read in conjunction with the Code. The main protocol, which you can read here, says that solicitors dealing with children matters should:
- emphasise the need for parents to accept parental responsibility for their children;
- aim to promote the child’s welfare as the paramount consideration;
- encourage separation of addressing the children’s needs from those of the parents;
- encourage the use of mediation and other dispute resolution options;
- provide information about local support/guidance services;
- provide information about parenting apart.
And elsewhere in the Protocol (which comprises a book some 200 pages long) there are two whole chapters, setting out guidelines for solicitors dealing with private and public law children matters. The guidelines enlarge upon the above, and set out the duties of solicitors dealing with such cases.
So it will be seen that we already have two codes dealing with the concern regarding the role solicitors can or do play in inflaming conflict in children disputes, and it is difficult to see what more could be added by another code. All family law solicitors will be bound by one or both of the codes, and it could be argued that the endorsement of the Resolution Code by the Law Society Protocol effectively means that all family law solicitors are bound by both codes. Whatever, if they follow the codes then surely they will not be guilty of inflaming conflict in children disputes?
And therein lies the rub, to misquote Shakespeare. These are just codes, with no real sanction if they are not followed. Now, I haven’t been practising myself for some ten years, but when I was I was aware of many solicitors who did not follow the codes, and I would be very surprised if they have all disappeared in that decade, although I would hope that their numbers have reduced. Yes, I’m sure that there are still some solicitors out there who conduct their cases in an inflammatory way, and no doubt also encourage their clients to pursue cases in an aggressive fashion.
But the same would surely be said about any new, additional, code, assuming it could say anything not already covered by the existing codes. Why would a new code stand any better chance of compliance than what we have already?
In short, we don’t need another code. What we have should cover everything we need. What is required is for solicitors to follow the codes that we’ve already got. I’m not necessarily saying that the codes should be strictly enforced (that raises all sorts of complex issues, such as client confidentiality), but there are steps that can be taken, such as courts registering their disapproval of inflammatory tactics by solicitors, and educating solicitors (and the public generally) as to the damaging effects of such tactics.
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Author: John Bolch