By Molli Clements.

Parental separation or divorce can be emotionally and financially challenging, especially when children are involved. In Australia, Services Australia provides assistance in determining and administering child support payments. Many parents prefer to reach their own agreement to suit their unique circumstances. One option available is entering into a binding child support agreement.

What is a binding child support agreement?

A binding child support agreement is a formal arrangement made between both parents that outlines the financial responsibilities concerning the care of their children, including but not limited to the following:

  1. Regular payments to the other parent, known as periodic payments;
  2. Payment of the children’s school fees;
  3. Extracurricular activities;
  4. Private health insurance;
  5. Gap in all medical, dental, optical, orthodontic health expenses;
  6. Clothing and school uniforms.

Unlike an informal agreement, a binding agreement can be legally enforced, providing certainty for both parties.

Steps for Creating a Binding Child Support Agreement

  1. Establish open communication: Effective communication is crucial when discussing child support. Parents should openly express their concerns, expectations, and financial capabilities to arrive at a fair arrangement.
  2. Seek legal advice: It is advisable for both parents to engage their own legal counsel. Lawyers specialised in family law can provide guidance and ensure that the agreement complies with the relevant legislation.
  3. Determine appropriate child support amount: Consider factors such as the child/children’s needs, educational costs, healthcare, extracurricular activities, and living arrangements. The Services Australia Child Support Estimator can provide a general idea of the expected payments based on income and care-time arrangements.
  4. Formalise the agreement: To ensure the agreement is binding, it must be in writing and signed by both parents. Each person must receive independent legal advice before signing to verify they understand the agreement’s implications and their rights.
  5. Arrange for registration: For the binding child support agreement to become enforceable, it needs to be registered with Services Australia. Once registered, it will replace any existing child support assessment.

Benefits of a Binding Child Support Agreement

  1. Parents have the freedom to negotiate payment amounts and conditions within the confines of legal requirements.
  2. A binding agreement provides stability by offering clear expectations regarding financial support for the child/children.
  3. Parties can tailor the agreement to suit their specific circumstances, including the division of additional costs such as school fees or healthcare expenses.

Please contact Tiyce & Lawyers to speak to one of our lawyers to discuss your family law matter and the preparation of a binding child support agreement. We’re here when you need us.

 

Photo by seabass creatives on Unsplash