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Burnham v Commissioner of Inland Revenue [2019] NZFC 10644

Published 12 December 2023

Application for orders — child support — departure from formula assessment — Child Support Act 1991, ss 15, 103B, 105 & 106 — Property (Relationships) Act 1976, s 21 — EJV v AJCB [2013] NZCA 100 — Upshon v Windleborn (2004) 23 FRNZ 526 — Johnson v Commissioner of Inland Revenue [2002] 2 NZLR 816 — Shaw v Sutherland [2002] NZFLR 145; (2001) 22 FRNZ 500 — GPF v CKW FC Hamilton FAM-2009-019-1242, 17 June 2010 — Fleet v Fleet (1999) 18 FRNZ 665. After separation the parties had entered into a voluntary agreement providing for the day-to-day care of their children to be with the mother, with the father providing child support payments calculated pursuant to the Child Support Act. This arrangement worked for a time, until the father stopped the payments and claimed that since the mother had placed her house in a family trust and was living in it for free, and that she hadn't returned to the workforce full time, her theoretical income should be taken into consideration thereby reducing his own liability. The father calculated that over the years he had overpaid by $29,000, and sought for either a refund or for his future payments to be offset by this amount. The father also claimed that he had more than 28 per cent care of the children, which further reduced his liability for payments. On the issue of the percentage of care, the Court found that the father should be assessed as meeting the 28 per cent threshold. On the issue of the mother's income, the Court found that the case law regarding underemployment was largely concerned with the non-custodial parent's income, and that the custodial parent's ability to earn would be lowered by childcare obligations. The mother had demonstrated a willingness to work and a desire to upskill and increase her earning potential. She had transitioned from unemployment to part time employment, and had actively been requesting more hours from her employer. It was found that the father's approach was not just and equitable or "otherwise proper", and therefore his appeal was dismissed. Judgment Date: 31 January 2020 * * * Note: names have been changed to comply with legal requirements. * * *