Separated parents and school fees VAT: Who will bear the brunt?

After a divorce or separation, parents may have to pay private school fees under a court order. But what if the school fees are no longer affordable (or are claimed not to be)?

From January 2025, many parents will face a significant rise in school fees for their children. On average, day school fees are expected to increase by £2,130 per year, while boarding school fees could rise by £7,100 annually. And of course those with several children will have to pay multiples of these increases.

This situation could pose challenges for separated parents who are required to pay school fees under a court order. If one parent is struggling to afford the higher costs, the other may need to increase their contribution, or they might even have to consider changing the child’s school. Consequently, it may be necessary for parents to renegotiate how school fees are divided, decide on alternative schooling arrangements, or enforce the payment of fees.

Mediation

The first step for many parents facing these changes is mediation, which is often the most cost-effective way to renegotiate terms while minimising conflict. Negotiations between solicitors can also be effective, and roundtable meetings with both parents and their legal advisors can facilitate constructive discussions.

To reach an understanding of what each parent can afford, it’s usually necessary to disclose financial information. If mediation or negotiations succeed, an amended order can be submitted to the court for approval, making it legally binding.

However, if this is not an option given the circumstances, or if negotiations are not going well, it may be necessary for a third party to decide the matter.

Court Options

If negotiations are unsuccessful, parents can apply to the family court for a judge to make a decision. They can ask the court to change the current order, enforce school fee payments, or approve a new school for the child. However, court decisions can take a long time, which isn’t ideal when urgent action is needed.

Non-Court Dispute Resolution

Alternative dispute resolution (ADR) can be a faster way to handle disputes about school fees. Options include:

• Private Financial Dispute Resolution (PFDR) where a privately-appointed judge gives non-binding guidance, helping parties to reach an agreement.
• Private Arbitration: where a privately-appointed judge makes a binding decision.

Both of these options are usually faster than going through the court system, they can be more cost effective, and like the court system will usually require full disclosure of the parents’ income.

If you’re facing this situation and want to talk about it, please get in touch —we’d be happy to help.