Section 24: Orders preventing avoidance
207.Section 24 inserts new section 32L into the Child Support Act 1991. Subsection (1) of section 32L enables the Commission to apply to a court to prevent a non-resident parent who has failed to pay maintenance from disposing of or transferring property, if it is being done to avoid paying child support maintenance.
208.Subsection (2) allows the Commission to apply to a court where a non-resident parent has failed to pay maintenance, for an order to set aside a disposition, if that disposition was undertaken with the intention of avoiding child support maintenance payments.
209.Subsection (3) gives the court the ability to make either order if it is satisfied of the grounds.
210.Subsection (4) provides that the court which makes an order under these provisions may make such consequential provision by order or directions as it thinks fit for giving effect to the order, including provision to require the making of any payments or the disposal of any property.
211.Subsection (5) sets out that, for the purposes of an order to set aside a disposition, any disposition can be reviewed unless it was made for valuable (or, in Scotland, adequate) consideration (other than marriage) to a person who acted in good faith and was not aware of the non-resident parent’s intention to avoid child support maintenance payments.
212.Subsections (6) and (7) clarify that, when an application is made for an order either to freeze assets, or to set aside a disposition, if the court is satisfied that either the disposition or other dealing would result in making the recovery of child support maintenance ineffective, it is to be assumed that the action was done or planned with the intention of avoiding child support maintenance payments.
213.Subsection (8) defines that for the purposes of this section, “disposition” does not include any provision contained in a will or codicil, but does include any conveyance, assurance or gift of property of any description.
214.Subsection (9) clarifies that this provision does not apply to a disposition made before the provision comes into force.
215.Subsection (10) defines that, for the purposes of this section, “the court” means the High Court in England and Wales, and the Court of Session or the sheriff in Scotland.
216.Subsection (11) sets out that an order made in a Scottish court to either freeze assets or set aside those already disposed of is effective for such period (including an indefinite period) as the order specifies, and may on application to the court be varied or recalled.
