1. Analyze your earning and expenditure
Family-based arrangement is an out of court settlement between the divorced parents regarding financial support to their children. The first step here is to analyze the earning and expenditure of both parents by writing down the earning and spending amount of each and what is left out. You could also agree on how and when you are going to support the child.
2. Making payment using a money transfer service
If you are not willing to share your bank details you’re your ex-spouse then you can opt for money transfer services like money gram or Pay Pal.
3. Paying by standing order
After much deliberation and thought, if you’ve agreed to support the child with regular and fixed payments, then you could decide on a standing order. This way you can transfer money from your building society account or your account to another person’s account. Standing order helps you to keep a record of the payments made, it stops building up debts, it helps to easily manage your finances, it helps transfer money through a money transfer service.
4. Flexible mode of payment
You may be able to change your payment method according to your change in conditions like if you lose your job; you can reduce the child maintenance and later on increase it when you find a new job.
5. Direct Debit and deduction from earnings orders
If you opt for the Direct Debit and deduction from earnings orders, the legal child maintenance service collects and passes on payments. The paying parent only has to make the payment by direct debit - where cash is being taken directly out of their building society account or bank by the service running their case through a deduction from earnings order -where child maintenance is taken directly from their earnings. The money is then paid into the receiving parent’s bank or building society account.
6. Direct Pay (Child Maintenance Service) or Maintenance Direct (Child Support Agency)
With Direct Pay or Maintenance Direct, the parent who is paying can make the payment directly to the other parent once the child maintenance amount is calculated. This is fast and flexible. Now that you have decided on the mode of payment, the foremost important thing is to maintain or keep a track of every payment and maintain a record. This will help you to shun any future issues or allegations.