What is a Child Support Private Agreement?
A child support private agreement is a written document between two parents that outlines how child support payments will be made. This includes the amount, frequency, and method of payment.
Unlike government-assessed child support, private agreements let parents set their own terms based on their financial situation and the child’s needs.
In Australia, there are two main types of private agreements: binding child support agreements and limited child support agreements. Each offers different levels of flexibility and enforceability.
Key Tip: A private agreement lets parents decide how child support is paid while meeting legal standards.
Types of Private Child Support Agreements
Binding Child Support Agreement
- A legally enforceable document.
- Both parents need to get independent legal advice before signing.
- The terms are fixed and do not change automatically, even if circumstances change.
- Can include cash payment or non-cash support like school fees.
- Can only be ended by mutual agreement or court order.
Key Tip: Binding agreements offer long-term stability but need legal advice and are harder to change.
Limited Child Support Agreement
- More flexible than binding agreements.
- Parents can agree on an amount equal to or more than the amount assessed by Services Australia.
- No need for legal advice to start.
- Either parent can end the agreement if circumstances change significantly.
- Can be updated if the child support assessment changes by more than 15%.
Key Tip: Limited agreements are easier to change but offer less certainty.
Benefits of a Private Child Support Agreement
- Tailored Payment Arrangements: Parents can negotiate an agreement that suits their financial situation and child’s needs.
- Avoid Government Intervention: Keeps payments and processes private between the parents.
- Customised Payment Methods: Can include non-cash items like education fees.
- Flexibility for Changes: Limited agreements allow adjustments if circumstances change.
Key Tip: Private agreements offer personalised solutions for both the parents and child’s needs.
Need a Lawyer?
Steps to Create a Child Support Private Agreement
- Discuss and Agree on Terms: Talk about the amount, method and duration of support.
- Choose the Type of Agreement: Decide on a limited or binding agreement based on flexibility needs.
- Seek Legal Advice (if Binding Agreement): Both parents must get independent legal advice for binding agreements.
- Document the Agreement: Clearly write the terms and have both parents’ sign.
- Register the Agreement with Services Australia: Not mandatory but ensures enforceability if one parent does not comply.
Key Tip: Proper discussions, documentation, and legal advice ensure a smooth and enforceable agreement.
When is a Child Support Private Agreement Suitable?
A private agreement is best for parents who can cooperate and negotiate amicably.
It’s also an option for those who prefer privacy and want to tailor support to meet family needs.
It may not be suitable if there is a history of conflict or concerns about consistent payments.
Key Tip: Private agreements work best with cooperative parents who trust each other.
What Happens if the Agreement is Breached?
If one parent fails to comply, the other can seek court enforcement. If the agreement is registered with Services Australia, they can help collect payments.
Courts may also intervene for binding agreements in exceptional cases.
Key Tip: Registering with Services Australia adds enforcement if payment issues arise.
Summary
A child support private agreement offers a practical, flexible way to manage child support without government intervention.
Whether binding or limited, these agreements allow for customized solutions that align with family needs.
They promote autonomy but require careful planning and, sometimes, legal advice to ensure enforceability.
