Werden and Jerome (Child support)

This matter concerned an appeal to the Federal Circuit Court of Australia regarding a child support departure determination. The appeal was brought by the liable parent, Mr Werden, against a decision of the Child Support Registrar. The dispute centred on whether the Registrar had correctly assessed Mr Werden's income and financial resources, and consequently, whether a departure from the standard child support assessment was warranted to meet the special needs of the child, specifically orthodontic treatment.

The primary legal issues before the Court were whether the Registrar erred in her assessment of Mr Werden's income and financial resources, particularly in relation to benefits derived from his business and income from a family trust. The Court was also required to determine whether, based on the correct assessment of Mr Werden's financial position, a departure from the standard child support assessment was justified to meet the child's special needs for orthodontic treatment.

The Court reviewed the evidence presented regarding Mr Werden's business activities and his entitlements from the family trust. It was found that the Registrar had not adequately considered the full extent of the benefits Mr Werden derived from these sources. The Court applied the principles of the *Child Support (Registration and Collection) Act 1988*, focusing on the need to consider all relevant income, property, and financial resources of the liable parent when determining child support obligations, especially in cases involving special needs. The Court concluded that the Registrar's assessment was flawed due to an insufficient consideration of Mr Werden's financial capacity.

Consequently, the Court set aside the decision under review and substituted its own determination. The Court ordered a departure from the standard assessment, reflecting a revised calculation of Mr Werden's income and financial resources, to ensure adequate provision for the child's orthodontic treatment.