Two types of child support agreements

There are two types of Child Support Agreements:

1. Limited Child Support Agreements
2. Binding Child Support Agreements.

Our experienced family lawyers will advise you on the benefits and risks associated with these agreements, and help you make the best choices for your family.

Limited child support agreements

Limited child support agreements must be in writing, and signed by both parents. A Child Support Assessment (conducted by the Child Support Agency through the Department of Human Services) must be in place before you can enter into a limited child support agreement.

You don’t need legal advice to enter into a limited child support agreement, but you do need to ensure that the annual rate of child support payable in the agreement is equal to or greater than the rate given in the Child Support Assessment.

Limited child support agreements must be registered by the Registrar of the Child Support Agency.

You can end a limited child support agreement in the following circumstances:

• when a new child support agreement is entered into in relation to the same children, subject to the original agreement
• with a Court Order
• with a Termination Agreement, in writing and signed by the parties

In certain circumstances where a party has requested a new notional assessment of child support, and the new notional assessment changes by more than 15%, that party can give notice (within 60 days) to terminate the agreement. It's important to seek legal advice to determine whether this is the case.

Binding child support agreements

Binding child support agreements provide parents with the flexibility to make different arrangements regarding child support.

This is why both parties must obtain independent legal advice in relation to that agreement, prior to entering into the agreement. The agreement must be in writing, signed by both parents, and include a certificate of each party’s legal practitioner to show that both parties have received advice covering:

• the effect of the agreement on the rights of the party
• the advantages and disadvantages, at the time that the advice was provided, of making the agreement.

As part of the process, both parties must disclose to the other party their financial circumstances.

The amount of child support payable in the agreement does not have to be equal to or greater than the rate given in the Child Support Assessment (unlike in limited child support agreements).When entering into an agreement, it is important to have a complete understanding of the expenses relating to the children, which may include school fees, uniforms, smart devices, phone bills and medical expenses.

Parents can agree to the payment of child support through regular payments, lump-sum payments, or payments towards expenses.

The terms of a binding child support agreement can only be changed by a termination agreement, an order of the court, or by entering a new Binding Child Support Agreement. Typically, these may be required when you or your former partner’s financial position changes. An expert family lawyer will help you ensure that the binding child support agreement properly reflect your best interests in these scenarios.

To enter into a termination agreement, or a new binding child support agreement, both parties must again receive independent legal advice from a family lawyer.