How does Child Support work?

If you find yourself in the challenging role of being a single parent, there a number of options you can consider to seek assistance and receive child support payments.

The first thing to do is to consider your circumstances: consider your income, your financial position, the needs of your child/ren, and your relationship with your child/ren’s other parent.

The next step is to think about which of the following options best suits your circumstances:

1.    Informal agreement between parents

Parents can self-manage their child support by coming to an informal arrangement between themselves regarding:

·       How much to pay;

·       Who receives what;

·       When to pay; and

·       How to pay.

This arrangement works best for parents who can communicate with minimal conflict.

2.    Child Support Assessment

The Child Support Agency regulates child support in Australia when parents have elected not to self-manage child support.

You will need to apply for a child support assessment, and provide details of both parents’ income and financial resources, and the needs of the children.

The Child Support Agency will then calculate each parent’s obligations based on a formula and regulate the amount and consistency of payments required.

Choosing to go through the Child Support Agency takes the decision out of the parties’ hands. This is a good option where parents are in high conflict as payments are managed by the Child Support Agency rather than requiring parents to communicate directly.

3.    Child Support Agreement

Parents can choose to self-manage their child support obligations by entering into a formal written agreement. You and the other parent may agree to:

·       Cash payments;

·       Non-cash assistance such as health insurance or school fees; or

·       A combination of cash payments and non-cash assistance.

Parents can elect to finalise their agreement by way of one of two agreements:

·       A Limited Child Support Agreement, which can be terminated by either party after 3 years; or

·       A Binding Child Support Agreement, which is legally enforceable until the child/ren turn 18.

Both forms of agreement are registrable with the Child Support Agency.

To learn more about your child support options and obligations, please contact our team at Littles Family Lawyers.