If you and your former spouse agree that you want to make a formal private child support agreement (instead of being subject to an assessment through the Child Support Agency), there are two types of private child support agreements that you can enter into – A Limited Child Support Agreement and a Binding Child Support Agreement. Here are some of the differences:-
Limited Child Support Agreement
- You must have a child support assessment in place from the Child Support Agency.
- The amount of child support paid must be equal to, or more than, the annual amount of child support under the assessment.
- You are not required to obtain independent legal advice. However, we recommend that you obtain independent legal advice.
- A Limited Child Support Agreement can only be in place for a maximum of three years.
Binding Child Support Agreement
- You are not required to have a child support assessment in place to finalise a Binding Child Support Agreement.
- The value of child support paid under the Binding Child Support Agreement can be for any amount the parties agree to.
- Each party to the Agreement must receive independent legal advice, and the Family Law Solicitor must attach a certificate confirming the relevant advice;
- A binding agreement can only be terminated before the end date if you enter into a new agreement and terminate the last agreement or by a Court Order.
The benefit of having a Binding Child Support Agreement in place is that it provides certainty over the amount of child support paid and can include additional payments for expenses for the children, such as school fees which may not necessarily be considered in an assessment for child support purposes.
It is important to remember that a binding agreement is precisely that. Negotiating the Binding Child Support Agreement's terms and considering your circumstances before entering a binding Agreement is important.
If you would like to speak to an experienced Collaborative Family Lawyer about your child support obligations or options regarding private agreements for child support, please reach out to us for a free, no-obligation 15 -minutes clarity call to discuss how you can start your family law journey.
We are based in Greenslopes, Queensland; however, we can service Australia-wide by way of a Zoom or a telephone consultation. Call us today on 1300 414 855.