Child Support Agreements

Child Support Agreements

Parents often pay and/or receive Child Support payments in accordance with an assessment by the Child Support Agency that is based upon the Child Support formula. Either parent may find that entering into a Child Support Agreement best suits them or their children.

A Child Support Agreement allows parents to make their own private arrangements for the provision of financial support for their children under the age of 18 years (or children over the age of 18 years who are completing their secondary education).

There are two kinds of Child Support Agreements:

a.  Limited Child Support Agreements; and

b.  Binding Child Support Agreements.

Limited Child Support Agreements

In the case of Limited Child Support Agreements:

1. The Agreement can be made without the parents obtaining independent legal advice.
2. The Agreement must be in writing and signed by both parents.
3. There must be a Child Support Assessment in place.
4. The annual rate of Child Support payable under the Agreement must be equal to or greater than the annual rate of Child Support under the Assessment
5. The Agreement will take effect once it is registered by the Registrar of the Child Support Agency.
6. After 3 years from the date of entering the Agreement either parent may unilaterally terminate it.
7. The Agreement cannot be varied but can be terminated by the parties in the following manner:
   a.  If they enter into a new Child Support Agreement;
   b.  If they enter into a written Agreement stating that the Child Support Agreement is terminated;
   c.  If a party or parties obtain a Court Order setting aside the Agreement;
   d.  If a party requests a notional Assessment and the notional Assessment varies by greater than 15%, either party can terminate the Agreement.

Binding Child Support Agreements

In the case of Binding Child Support Agreements:

1. Each party must have received independent legal advice and the Agreement must contain a certificate under Section 80C of the Child Support (Assessment) Act 1989 signed by each parent’s legal practitioner stating that the parent has been provided with independent legal advice as to:
   a.  The effect of the Agreement on the rights of the party; and
   b. The advantages and disadvantages, at the time that the advice was provided, to the party of making the Agreement.
2. The Agreement must be in writing and signed by both parents.
3. The amount payable can be higher or lower than the amount payable under the Child Support Assessment.
4. The Agreement can provide for the payment of lump sum and/ or periodic Child Support.
5. Both parents must disclose their financial circumstances before entering the Agreement.
6. The Agreement can only be set aside by a Termination Agreement, a new Binding Child Support Agreement or by an Order of the Court.

Our team of experienced family lawyers are available to discuss Child Support Agreements with you and to advise whether a Limited or Binding Child Support Agreement might best suit your particular circumstances. Please contact us today to find out which option is right for you.