Raising a child can be very expensive, especially for single mothers and fathers who have to provide everything for their children alone. That is why child support is put in place to ensure that both parents contribute financially to raising their children. There are different types of child support arrangements in Australia, and if you're finding it confusing to understand which one suits you best, what do you need to consider?
Court-Ordered Child Support
When parents cannot come to an agreement about child support, a court will make a ruling and set up the arrangement for them. The court considers factors such as the child's expenses, each parent's financial situation, and the amount of time each parent spends with the child. Once the child support arrangement is established, parents are legally required to comply with the order.
Private Child Support Agreement
A private child support agreement is a mutually agreed-upon arrangement between both parents that does not involve the court. It can include any amount, frequency, and method of payment that both parties agree to. You can use a child support agreement template, but it's best if you consult a lawyer before entering into any private agreement.
Child Support Agency
The Child Support Agency (CSA) is a government body that manages child support payments between parents. If you and your ex-partner cannot come to a mutual agreement, then the CSA can be contacted to make the arrangements for child support on your behalf. The CSA collects payments from one parent and distributes them to the other parent as per the agreed-upon arrangement.
Limited or Binding Child Support Agreement
Limited or binding child support agreements are two types of agreements that you can enter into with your ex-partner. A limited agreement sets out the terms and conditions of the child support arrangement, but it can be reviewed as circumstances change. A binding agreement, on the other hand, is a more formal agreement that is legally binding and cannot be altered in the future.
Lump Sum Payment
Sometimes, parents agree to make a lump-sum payment instead of regular payments to cover the child's expenses. The lump sum can include a specific amount for living expenses, school fees, clothing, medical bills, etc. This type of arrangement can be beneficial for parents who prefer to make an upfront payment or for parents who have irregular income.
What to Do Next
Child support arrangements can be complicated, but with the right information, parents can choose the best arrangement that suits their situation. Whether you opt for a court order, private agreement, or CSA agreement, it's important to have a structure that both parties are comfortable with. Seek legal guidance if you are unsure of which agreement to enter into. Remember, child support exists to help provide for children's financial needs and make co-parenting a little easier for parents.
Contact a local lawyer for more information about family law.
