When parents are going through divorce and separation - what happens to the child benefit? A child can often divide his or her time between two households over the course of a week. This can be an ideal arrangement, allowing the child to maintain a close relationship with both mum and dad. There can however be unforeseen financial implications if either or both parent receives benefits.

Shared care does not mean shared benefits. This can cause significant practical difficulties where one or both parents rely on benefits as a main source of income.

Child benefit can only be paid to one parent (with 'main responsibility') for one child. Where there are two children, parents can elect to each receive the benefit for one child. Child benefit for one child cannot be divided between two parents.

The law dealing with benefits is unhelpful stating: where parents do not choose who is to receive child benefit, the Secretary of State will use his discretion to decide. This usually means that the decision is taken by HM Revenue and Customs, who often look at the number of nights a child has in each home.

There can be further difficulties where there is a dispute over child benefit as generally payment is suspended and not made to either parent until it is resolved.

The question of which parent is entitled to the child benefit has implications for receipt of related benefits such as child tax credit and working tax credit. These are generally paid to the main carer - the one who gets the child benefit. It has an even more significant implication if the Child Support Agency is involved. If the CSA cannot see clearly who is the 'parent with care' and who is the 'non-resident parent' it will look simply to the one who receives the child benefit and that parent will become the only 'parent with care' for CSA assessment purposes - entitled then to make a claim against the other parent.

We have unfortunately been involved in cases where a parent feels they must contest a shared care arrangement to preserve the benefits they are receiving.

It is very important to take legal advice regarding the potential impact of a shared care arrangement on receipt of benefits. A carefully worded agreement can resolve any inequities privately between the parents.

If you'd like advice in this area or any other aspect of divorce/separation/residence, get in touch.