There are several ways that child support can be managed between parents.
Some parents want and can make very flexible, informal arrangements between them.
Others prefer that their arrangements are managed by the Child Support Agency. While other parents prefer to formalise the arrangements using a Private Agreement to establish how each parent will pay for expenses that may not be covered by or sufficient under a Child Support Agency child support assessment.
What is child support in Australian family law?
Child support is the term for payments parents make to their children when they are no longer living together. It’s often referred to as child maintenance.
The child support payments can be applied regardless of whether the parents are:
The child support system helps to ensure that children’s financial needs are met. Both parents are responsible for financial support for their child. However, their obligations will depend on many factors, including income, financial obligations, and the care they provide for their children.
A child support agreement, which is a written agreement between parents and carers of children, outlines the payments that will be made to their children. There are many ways to make child support payments.
Each week, one parent/carer receives a set amount of money directly into their bank account. These payments can be used to offset any child support that you may be required to pay.
A child support agreement, which is a written agreement between parents and carers of children, outlines the payments that will be made to their children. There are many ways to make child support payments.
- Each week, one parent/carer receives a set amount of money directly into their bank account
- Payment to school for fees
- Payment to medical funds for insurance
- Payment to providers of extracurricular activities
There are three types of Child Support Agreements
- Binding
- Limited
- Lump Sum
“Binding” Child Support Agreements
For an agreement to be legally binding, both parties must have received independent legal counsel on the benefits and disadvantages of entering it. Before any agreement can be signed, both parties must receive independent legal advice. Our team at Burra-Robinson Family Lawyers can help support and guide you through this process.
It is not necessary for the Child Support Agency to prepare an assessment of the payer. You can enter into an agreement for less money than what was assessed by Child Support Agency. However, we recommend that you visit the Human Services website in order to get some guidance on the child support payable if you were evaluated by Child Support Agency.
Unless the agreement gets set aside, it will continue to be in effect until the youngest child turns 18 years of age or the child enters a de facto relationship.
Once the agreement has been signed, you should each be given a copy.
A binding child support agreement cannot be cancelled. It is very difficult to do so and can only be set aside if it was obtained fraudulently or if extraordinary circumstances have occurred since the agreement was entered into. If the agreement is not cancelled, a parent/carer may suffer financial hardship. In general, exceptional circumstances can only be met if something unexpected occurs such as a significant increase in the care of the children by one of the parents.
“Limited” Child Support Agreements
While limited child support agreements may be written, they offer more flexibility than binding child support arrangements. They typically involve irregular or non-periodic payments to parents/carers or to third-party providers like schools and medical funds. An existing child support assessment must be in place. The annual amount payable must also be equal or greater than the amount assessed. Before entering into a limited agreement for child support, you are not required to seek legal advice.
Limited child support agreements are easier to set aside and can be done at the election of one party after the expiration period of three years. You can also set aside these agreements if one of the parties has lost more than 15% of their income.
“Lump Sum” Child Support Agreements
In cases where the payer has repeatedly failed or delayed paying child support, it may be possible to have that support paid as a lump sum. The courts may not allow this because the money could be used for immediate purposes and not allocated correctly for long-term benefit.
Need further assistance?
A child support agreement has both advantages and disadvantages, depending on your circumstances and what you hope to achieve.
It is a good idea to seek legal advice before you sign any child support agreements. This will help you understand the difference between binding and limited agreements, and the implications for you.
Burra-Robinson Family Lawyers can help you make financial arrangements for your children or provide advice and guidance with respect to child support agreements.
Contact one of our divorce lawyers to get more information and prompt, effective advice.
Common Child Support Questions?
Do you have to be the child’s parent to receive child support?
No – a carer could include the child’s (or children’s) grandparents, relatives or close friends who care for the child. Burra-Robinson Family Lawyers has represented many grandparents who were entitled to child support over the years.
How does child support get assessed?
The Department of Human Services (Child Support), a government agency, makes an administrative assessment based on several factors.
What factors influence the amount of child support paid by the payer?
Although the amount determined in each case is different, both parents’ incomes will be taken into consideration. The amount of time that the child/children spend with each parent, as well the fact that the payer may have other children who need financial support, are all relevant.
How is child support collected?
After an assessment is completed, the parties have the option of choosing how support is collected and/or paid. They can also make a private arrangement like through bank deposits. This approach is risky if the financial situation of the paying parent changes or if they are not reliable.
You should not agree to private collection arrangements without first consulting with us at Burra-Robinson Family Lawyers for legal advice.