Private School Fees and Divorce

Divorce and Separation can impact children in a number of ways and often a big concern for parents with children at a fee paying school is how those fees can and will be continued to be paid.  

Managing school fees during divorce or separation

Divorce or separation is a challenging time for everyone in the family, and when children are involved, it brings additional concerns, especially for parents with children in fee-paying schools. One of the most pressing issues parents face is how to continue paying for their child’s education. In this article, we’ll explain how school fees are handled during divorce, the impact of recent VAT changes, and what steps you can take to manage this financial burden effectively.

Understanding school fees and child maintenance

One of the first things to know is that school fees are not covered by standard child maintenance payments. The Child Maintenance Service (CMS) typically only covers basic living expenses, such as food and clothing, not additional costs like private school fees. However, the court can order one parent to pay for the school fees on top of any maintenance obligations.

In cases where a child has been enrolled in a private school, the court may consider it unreasonable to disrupt their education, especially if private schooling had already been agreed upon before the separation. In the case of T v T (Financial Provision: Private Education), the judge made it clear that pulling a child from private school could be “not just unfair” but “damaging” to their well-being.

The impact of VAT on school fees

An important change parents should be aware of is the introduction of 20% VAT on private school fees. This increase significantly raises the cost of private education, making it even more challenging to manage. It is an additional expense for parents to consider when planning finances during divorce or separation.

It’s now crucial to factor this new cost into your calculations when assessing whether private education remains affordable or sustainable in the long term.

What to do if one parent refuses to pay fees

If one parent refuses to pay their share of the school fees, the school may seek to recover the costs from the other parent, depending on its terms and conditions. If school fees are due and you're unsure how to cover them, your first step should be to speak directly with the school. Many independent schools have bursaries or other financial support systems in place that can help parents through difficult times while they get their finances in order.

Is private education still affordable after separation?

After a divorce or separation, it’s common for household incomes to be split between two households, which can make school fees unaffordable. If good state school options are available, parents might agree to transition their children out of private school. In such cases, the courts may view private schooling as a “luxury” rather than a necessity, especially if there are affordable state alternatives.

Another important factor to consider is that school fees generally increase as children grow older. Fees for older children are typically higher, and long-established schools may charge more than newer ones. This means that the cost of private education could continue to rise as your child advances through their schooling years.

Finding financial solutions: options for parents

If both parents agree that private education should continue, but the costs are becoming difficult to manage, there are a few options to consider:

1. Increasing Income: If one parent is working part-time or not at all, it may be necessary to find ways to boost the family income. This could involve one parent seeking full-time employment or other adjustments to income-generating arrangements.
2. Ring-Fencing Matrimonial Capital: In some situations, parents may agree to ring-fence part of their matrimonial capital to cover school fees. While this could ensure the child’s education continues uninterrupted, it also means that the money set aside for fees may not be available for other essential expenses, like housing or savings.
3. Paying Fees Upfront: Some schools offer a small discount if fees are paid upfront for the entire term or year. While this can help reduce costs in the short term, parents should be cautious as paying upfront means tying up a significant amount of money with the school. Additionally, if the school’s financial situation is uncertain, the security of the upfront payment may be at risk.

What should a school fees order cover?

If a court orders one parent to pay school fees, it’s important to clarify exactly what’s included in that order. Does it cover just tuition, or will it also include additional costs such as:

• School trips
• Uniforms
• Sports equipment
• Music lessons
• Boarding or flexi-boarding fees

These costs can add up quickly, so it’s important to ensure the court order clearly defines what is and isn’t covered.

Get early legal advice

With the added complexity of VAT on school fees and the many financial challenges that come with divorce, seeking early legal advice is essential. By understanding your options early on, you can take steps to minimise disruption to your child’s education while protecting your financial interests.

If you're navigating this difficult issue, our team has extensive experience helping parents through the complexities of school fees and financial arrangements in the wake of divorce or separation. Our offices in Milton Keynes, Harpenden, and Luton are here to help guide you through the process and find the best solution for your family.

Managing school fees during a divorce or separation can feel overwhelming, but with the right support and planning, you can ensure your child’s education remains uninterrupted. Take the time to fully understand your options, consider the impact of the new VAT regime, and work with a legal professional to help make this challenging situation easier to navigate.

We offer an initial Fixed Fee meeting which gives you an hour with a specialist family lawyer.
Call 0330 0945 500, email family@nevesllp.co.uk  or complete our Contact Form and we'll get back to you.