Balanced Expected Spending
Principles
This identifies household cash flows which attempt to achieve the following:
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1st family children and 2nd family children see an
equivalent contribution from their common parent (the 1st family NRP),
so they are seen to be equally important - a principle which must
not be compromised; |
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children see the same proportional contribution from
each parent, so there is no bias towards PWC, NRP, or NRP's new partner,
or by gender. |
It is unlikely that this scenario will be achieved exactly in any particular
case. It depends on the whims of the parents, and legislation can't ensure
this. Any or all of the parents may be miserly or generous towards their
children. Nothing except open-book family accounting, or eliminating human
variability, will prevent this.
The key is whether the child support formula performs a redistribution
which enables the various parents to achieve this fair balance
if they choose to, without unbalanced hardship. That is probably the most
that can be expected from a redistribution formula.
The cash flow across the two households
The starting point for this situation is the 15/20/25% which the NRP
is expected to contribute towards the 1/2/3 1st family children. If this
is reasonable, it is assumed reasonable for this person's contribution
to the 2nd family children also to be 15/20/25% (according to how
many there are). Given that all parents (not just the NRP) should contribute
to their children, it is further expected that the other parents should
also contribute 15/20/25% of their income to their children. This is an
idealised cash flow for the two households which has equality of responsibility
and importance explicitly designed into it. (This paper assumes no sharing
of care). So:
1st family NRP spends 15/20/25% of own net income on 1st family
children (via the PWC), 15/20/25% on 2nd family children, and so has
50% to 70% for everything else.
1st family PWC spends 15/20/25% of own net income on 1st family
children, and has 85/80/75% for everything else. (Also spends the money
from the NRP on the 1st family children).
2nd family other parent spends 15/20/25% of own net income on
2nd family children, and has 85/80/75% for everything else.
1st family children receive money, goods & services to the
combined value of 15/20/25% of the net income of each of their parents.
2nd family children receive money, goods & services to the
combined value of 15/20/25% of the net income of each of their parents.
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