How bonuses affect child maintenance for high earners
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Bonus season is upon us once again, a source of agony or ecstasy as the case may be! This raises a question many high-earning separated parents haven't considered: how does a bonus affect child maintenance? The answer depends on your income, your family structure, and whether the Child Maintenance Service has reached its limits.
When CMS reaches its limit
Many people pale at the thought of engaging the Child Maintenance Service (CMS). However, in relation to high earners, its role may be limited to making a CMS maximum assessment: income above that does not count for CMS purposes.
The current maximum assessment under the CMS legislation requires a gross income of £156,000 per year (figure correct as of May 2026).
Many in the city will receive higher bonus sums, and therefore, the CMS is of limited importance.
What is a top-up order?
This means, however, that the courts retain a role in assessing a child maintenance top-up order — additional maintenance paid by one parent to the other.
Note: this applies to married or unmarried families, the only requirements being parentage and separation.
If a maximum CMS assessment has been made, the party with care of the children can apply to court for additional maintenance.
How courts approach top-up orders
The court's approach is less clear because it is based on case law, and this is generally fact-dependent. Indeed, judges have been at pains to point out that there is no one-size-fits-all approach and have, in fact, rejected applying the CMS formula to higher incomes.
The current position is slightly unclear. High earners will pay a maximum CMS assessment, and then, potentially, also a discretionary additional sum depending on the exact circumstances.
Married vs unmarried parents: why it matters
If the parties are married, the position may be different. The court has emphasised that child maintenance claims in divorce cases cannot be abstracted from the whole. This means that it will generally not be appropriate to apply the percentage deduction to the whole gross salary and make an order in those terms, especially with very high incomes. Other factors come into play, for example, the standard of living, the needs of the parties, etc. This tends to reduce rather than increase the value of a claim for children of married parties on divorce.
However, in cases of unmarried families, claims are made under Schedule 1 of the Children Act 1989, and the maintenance claim may be very much at the forefront. In divorce cases, it is unlikely that budgets will be closely scrutinised, and a broader brush is generally taken. This is not so in unmarried cases, where parties can expect to produce and analyse respective budgets for children.
It is currently unclear exactly how this will play out in the future, given the differing approaches set out in the various cases. While judges have attempted to set out guidelines, for example, the concept of a household expenditure award. This award essentially looks to support a child by considering the reality of their circumstances within a separated home, but whether this is followed in the future has yet to be tested.
Getting the right advice on child maintenance
Clearly, to get the right balance, legal advice is required. If you have recently separated and are unsure what you should be paying, or if this is impacting your relationship with your ex and therefore perhaps the arrangements for seeing your children, we can assist in clarifying the approach to be taken, as part of a broader financial analysis. A child maintenance court order may be appropriate in your circumstances, so rather than worry or argue, please contact us to have a chat and discuss this further.
Family Law in the City
Tel: 020 4579 5360
Frequently asked questions about child maintenance
What is the CMS income cap and what happens when a parent earns above it?
The Child Maintenance Service applies a maximum assessment based on a gross annual income of £156,000. Where a paying parent earns above this threshold, the CMS calculation does not increase further, and income above that level is disregarded for CMS purposes. In these circumstances, the parent with care of the children may apply to court for an additional "top-up" maintenance order to reflect the higher income.
How do courts in England and Wales approach child maintenance for high earners?
Where a maximum CMS assessment has already been made, courts have discretion to award additional child maintenance based on the specific facts of the case. There is no fixed formula — judges have expressly rejected applying the CMS percentage calculation to higher incomes — and the outcome will depend on factors such as the child's needs, standard of living, and the financial circumstances of both parents. Legal advice is essential to understand how a court is likely to approach any particular situation.
Does a bonus count as income for child maintenance purposes?
Bonuses can be relevant to child maintenance, but the position is fact-dependent. For CMS purposes, gross income up to £156,000 is assessed, and bonuses may be included in that calculation if they form part of verified annual income. Where income — including bonuses — exceeds the CMS cap, the courts retain jurisdiction to make a top-up order, and a discretionary bonus may be a factor the court takes into account when assessing the appropriate level of additional maintenance.
Is the child maintenance position different for married and unmarried parents?
Yes, there is an important distinction. In divorce proceedings, child maintenance is considered alongside the overall financial settlement rather than in isolation, and courts are unlikely to scrutinise individual budgets closely for higher-income couples. In cases involving unmarried parents, by contrast, maintenance claims under Schedule 1 of the Children Act 1989 are assessed more independently, and both parties can expect to produce and examine detailed budgets for the child's expenses. This means the maintenance figure in an unmarried case may be higher, or at least more precisely calculated, than in a comparable divorce case.
