In Australia, parents – married, separated, or divorced – have a duty to maintain their children. This includes the financial obligations. Child support is designed to fairly divide the reasonable living expenses of the child/ren, ensuring their financial requirements are met and their wellbeing is prioritised.
Child support agreements are an often-stressful issue when separating. The questions of how much financial support is necessary, and how the amount will be paid, can add additional pressure to the parental relationship.
While the negotiation of child support agreements can be complex and contentious, our family law team is here to ensure that you understand your rights and your obligations. We advise you and protect your interests and work with you to establish an equitable Child Support Agreement.
If you have just separated, what should you do?
For some couples, separation can be a well-thought out and even amicable process, whilst for others it can happen suddenly or be difficult. Getting informed about child support and financial matters is important. It will help to reduce the disruption of a separation on you and your children.
Getting advice is key. Family law matters are all individual and child support needs to be tailored to your family dynamic as well.
- Get an understanding of what is involved in the family law process.
- Decide on the initial childcare arrangements
- Get legal advice on how you get an early and satisfactory agreement.
- Decide on your child support agreement form.
- Get the child support agreement drafted and finalised to suit your needs.
When does Child Support end?
Before you enter into any agreement, you should know how long you will be bound by the agreement. Parents paying child support may find themselves asking, at what age does child support stop? You are responsible to provide financial support for your children until they reach the age of 18.
Any agreements surrounding child support endure for a long period of time and you should protect yourself and ensure you get legal advice and clarity about what's involved.
If you have any queries about financially supporting your child over the age of 18, please contact one of our family lawyers.
How does Child Support work?
Child support obligations are established through either an assessment made by the Child Support Agency (CSA); or as private agreement made between the parties.
Child Support Assessments are undergone when an application is made by either parent. The Child Support Agency will calculate the amount payable, placing an obligation upon the paying parent to supply the determined amount to the payee parent.
Alternatively, child support agreements generally allow more flexibility as the parents to reach a decision privately. The agreements allow parents to include additional items including private school fees or extra-curricular activities, for example.
Our solicitors can provide streamlined advice about the most appropriate avenue to obtain a child support agreement, given the particulars of your situation.
What does Child Support Cover?
- Food
- Clothing
- Housing/ accommodation
- Medical expenses (not private health – usually)
- Childcare often no private schooling
- Travel expenses
- Other expenses
How much Child Support Should I Pay?
Child support is determined by a parent's capacity to provide financially. Therefore, the amount of child support owed is situational and generally derived from the following factors:
- the number of children the payer and payee both have;
- how old the children are;
- the taxable income of each of the parents; and
- the amount of time each parent cares for the children
Here is a calculator to estimate the amount of child support you may be owed, or you may be liable to pay HERE.
Please note, this amount is only an estimate. Legal advice should be sought for a more comprehensive estimate.
Advice from a lawyer will help to ensure that all the costs associated with child support are considered. Family lawyers routinely help clients resolve the known issues to them and also have a deep understanding of the issues that are likely to arise in the future. Legal agreements are binding, and we ensure that the parties are protected both now, meeting you immediate needs, and in the future.
Can you have a private Child Support agreement?
Yes, private child support agreements are available and are either in the form of binding agreements or more temporary limited child support agreements. Family lawyers will draft the agreement for you and ensure that all the circumstances for your family are carefully considered and taken into account.
Binding child support agreements are made privately between both parents and detail a child support payment plan. For this agreement to be recognised by the CSA, this agreement must be reviewed by independent lawyers on behalf of each parent. Independent legal advice ensures that the parties understand their obligations and that the agreement is equitable.
The amount of Child Support agreed upon may be more or less than the amount payable, as determined by the child support assessment. To be eligible for child support under a binding agreement, the payee parent must care for the child for at least 35% of the time.
If both parents agree you can renew the binding agreement or if there is not agreement you will need to go to court. A court will consider the grounds for changing the agreement and has the power to terminate the agreement. For this reason, it is important not to enter a child support agreement without proper advice from an expert child support lawyer. They are costly and difficult to renegotiate and terminate.
Limited child support agreements must follow a child support assessment. The amount of child support given as per this agreement must meet or exceed the amount owed in the assessment.
While a lawyer's approval is not necessary when signing a limited child support agreement, it is highly recommended that legal advice is sought to ensure the most favourable outcome. A limited agreement can last for at least 3 years – quite a long period of time if the agreement disadvantages you in any way. A lawyer will advise you quickly if an agreement is inequitable and if there are any terms that may negatively impact you.
Limited agreements may also end if:
- Both parents agree in writing to end the agreement
- It has been 3 or more years since the agreement was made
- A parties income changes by more than 15% from the original child support assessment
- Parents enter a new limited or binding agreement
- A court order sets aside the agreement
How can child support be paid?
While child support is generally paid directly by the payor parent, to the payee parent. However, the Child Support Agency may also collect payments directly from the payor parent's salary or wages if there is concern over payment.
Child Support liability may also be reduced if the payor parent incurs prescribed expenses or makes agency payments.
The child support obligation of the payee parent may be credited by up to 30% if they make payments towards the following 'prescribed expenses' for the child.
'Prescribed expenses' include:
- School Uniforms and textbooks
- Childcare payments
- Medical and dental expenses
- School fees
- Housing expenses (including rent, bond, mortgage)
- Motor vehicle costs
Non-agency payments are non-monetary transactions – paid from the payor parent to the payee parent. They may take the form of a service provision or a transfer of property holdings.
For non-agency payments to be credited towards payable child support, it must be agreed by both parties that the payment was made towards child support liability.
Does Child Support Cover School fees?
If you have a child at Private School, you do not have to contribute to the cost of a private education unless you have consented to do so. However, the payment of private school fees may be detailed within a child support agreement.
While privately formed Child Support Agreements allow parents to include additional, expenses including Private School fees, such agreements may not always be appropriate. In cases where financial obligations have been established by the CSA, the question of Private School fees is complex.
When the CSA determines the amount payable, the costs of education considered is the costs of state school attendance. Therefore, an amount determined by the CSA will generally not be sufficient to pay for the cost of an independent school.
However, if a payor parent wishes to pay for private schooling, when a payee parent does not agree for this cost to be included in the Child Support Assessment, the payment of private school fees may be partially credited as a non-agency payment. Parents may also apply to the CSA have their Child Support agreement re-assessed to consider the cost of Private School fees – if they drastically shift the cost of child maintenance.
For more information about the payment of Private School fees following separation read our article here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
