Child support can be managed between the parties in a number of ways. Some parents prefer to and are able to have very flexible andinformal arrangementsbetween them. Others prefer that their arrangements are managed via theChild Support Agencies– and other parents formalise their arrangements via aPrivate Agreement.
Aprivate Agreementdetermines how the expenses which may not necessarily be covered or considered sufficient under achild support assessment, completed through theChild Support Agency, would be paid by each parent.
Taking the first step
The first step is to determine how you, the parents, want to manage your child’s support. Irrespective of whether theChild Support Agencyis managing the child support or if you have a private agreement in place, as a parent, it is your obligation to ensure that:
- If you are the paying parent, that the full amount is paid on time;
- Within the recommended period of time your tax return is lodge;
- Your income is reposted accurately; and
- If there is any change in your circumstances, you’ll need to inform the government.
The Child Support Agency
TheChildsupport agencyuses a formula which takes into consideration each parents circumstances to determine the amount ofchild supportwhich is to be paid.
This formula takes into consideration the following:
- The amount of time each child spends with each parent;
- The age of each child; and
- Each parent’s income and their combined income.
After anapplicationfor achild support assessmenthas been made, theChild Support Agencywill contact the maker of the application and discuss the options for collection.
It is important to note that the agency’s formula does not take into consideration an allowance for private school fees or health insurance premiums and or any additional payments made under aprivate agreement.
Child Support Private Agreements
TheChild Support (Assessment)Act 1989sets out that there are two types of agreements which are taken into consideration or alter the amount of child support which is to be paid.
The considerations which are taken into account are:
- The payment of private school fees;
- The payment of uniforms, books and extra-curricular-activities;
- The payment of private health insurance; and
- Any additional costs due associate to the child/s with ‘special needs’.
It is important to understand what the act sets out when arranging aprivate agreement.
There are two types ofPrivate Child Support Agreements:
- Limited Child Support Agreementsand
- Binding Child Support Agreements.
What’s the difference betweenLimited Child Support AgreementsandBinding Child Support Agreements?
Both agreements will formalise theirchild support arrangements. Both agreements are required to be signed by the parties and will need to be lodged with theChild Support Agency.
However, as both agreements are different it is important for you to carefully consider whichchild support agreementis right for you.
For more information or to discuss your situation, please contact us on 1800 662 535 for a FREE 20-minute consultation.
Article Source: Child Support Agency – https://jamesnoblelaw.com.au/the-different-types-of-child-support-arrangements/