A child support agreement is an agreement entered into between parents in which they agree on how much child support one parent will pay to the other. The agreement can deal with periodic payments, non periodic payments or both.
Some parents choose to have an informal agreement about child support, however these are not binding if one party chooses not to abide by the agreement.
There are two types of written formal child support agreement. A limited child support agreement and a binding child support agreement.
Binding Child Support Agreement
A Binding Child Support Agreement provides a more structured and legally enforceable option. It must be signed by both parents, and each party must receive independent legal advice beforehand. Certificates from the advising lawyers must also be attached to the agreement.
This type of agreement allows for more customisation. Parents can agree on an amount that is less than, equal to, or more than the assessed amount, or even enter into an agreement when no assessment exists.
It is much harder to terminate, typically requiring mutual consent or a court order. Unlike limited agreements, it cannot be ended unilaterally after three years.
Best suited for high-conflict situations or more complex arrangements, including lump-sum payments or non-cash support, where legal certainty and enforceability are important.
Limited Child Support Agreement
A Limited Child Support Agreement is a written arrangement signed by both parents and supported by an existing administrative assessment from Services Australia. Importantly, the amount agreed upon must be equal to or greater than the assessed amount. Parents cannot agree to pay less. Unlike other agreements, legal advice is not required prior to signing.
This type of agreement is easier to end, with termination possible by either party after three years, or if a new assessment results in a variation of more than 15 percent in specific components.
Best suited for parents seeking a more flexible, low-conflict arrangement that avoids complex legal processes.
