This is Money quotes Sarah Jane Boon on the addition of VAT to private school fees and the potential impact on divorcing couples
min readAs reported by This is Money, family lawyers are increasingly observing that the increase in VAT on private school fees (starting in January) is introducing a new area of contention for divorcing couples.
The 20 per cent increase in fees - which typically range from £6,000 to £13,000 a term - is affecting negotiations of 'school fees orders' while some existing orders are now potentially unaffordable.
It may be the case that, as a result, some parents will struggle to make payments on school fees and others may not be able to reach an agreement about fees so will have to make an application to court.
Sarah Jane Boon, Family Partner, says:
An application to vary or discharge the order will only succeed if the applicant can establish that the fees are no longer affordable, by giving up to date disclosure of their income and outgoings.
"Even if the other parent has not been paying any of the school fees, they will also need to provide disclosure of their financial position, so that the court can decide if they should now make a contribution to the increased school fees.
"Consideration may also be given to any savings which either parent could put towards the school fees.
Read the full piece in This is Money here.
