Often when parties attend mediation for parenting matters it is also important to discuss and reach agreement, where possible, as what financial arrangements will be put in place to ensure the ongoing child support for the children. Kathleen can help parties to negotiate a private agreement for the payment of child support by way of a Limited Child Support Agreement or a Binding Child Support Agreement.
In Australia, parents share financial responsibility for their children. This responsibility applies regardless of the parent’s marital status, past or present relationship, or involvement in the child’s life. Generally, the financial responsibility for a child continues until they turn 18 or complete secondary school.
What is child support?
Child support is the payment of regular or periodic contributions by one parent of a child to the other parent or carer, for the child’s ongoing welfare and maintenance. Child support generally comes into play after couples separate and they sort out the division of their property and future parenting arrangements.
The child support scheme in Australia is regulated through various laws and administered by Services Australia. The amount of child support paid may be determined on application by a parent/carer for an administrative assessment through Services Australia. A complex formula is used to calculate the amount of support to be paid.
Alternatively, parents can make a private child support agreement regarding child support.
What is a private child support agreement?
A private child support agreement is a legally binding arrangement made between parents regarding the financial support of their children after separation. Private agreements can give parents greater control over the amount, frequency, and method of child support payments, allowing them to consider unique factors not always captured by the standard assessment process used by Services Australia.
Types of private child support agreements
Binding child support agreements
Binding child support agreements are typically long-term and cannot easily be altered. The agreement usually contains a terminating event such as when a child reaches 18 years or finishes secondary school. To be legally binding, the agreement must be in writing and signed by both parents after each parent receives independent legal advice. A certificate from each lawyer confirming this advice must be attached to the agreement. Binding child support agreements can provide certainty and long-term stability. Before settling the agreement, parties should consider unforeseen events (health issues, loss of job, etc.) that could impact the ability to meet the obligations outlined in the agreement.
Limited child support agreements
Limited child support agreements are based on a child support assessment and are generally for a shorter period. They are easier to change than binding agreements and, therefore, offer a less permanent option. Like binding agreements, limited agreements must also be in writing and signed by both parents. While legal advice is not mandatory, it is strongly recommended. A limited child support agreement might be preferred when parents want the flexibility to renegotiate arrangements in a shorter period.
Why opt for a child support agreement?
Private child support agreements can offer parents a flexible way to manage child support arrangements outside the formal assessment process through Services Australia. These agreements allow parents to tailor arrangements to their specific circumstances, often leading to more amicable and cooperative co-parenting.
No matter which option you choose, it is important that the agreement is carefully drafted to consider a range of contingencies and that each party to the agreement understands their respective rights and obligations.
This is particularly important where agreement is reached regarding who is to be responsible for payment of private school fees, extra-curricular activities or medical expenses.
If you need assistance to mediate an agreement regarding the payment of child support you can email [email protected] or call 0421 828036.