Parents going through a separation may be required to pay child support. This may involve a payment being made by one or both parents to the other to help with the cost of looking after the children.
The child support assessment process is administered by the Australian Government, Department of Human Services (“DHS”). A parent may make an application to DHS for a child support assessment. DHS would take into account a number of factors including the income of each parent and the percentage care of the child or children. A change to the circumstances of each parent or of the child can change the calculation of child support. This can be a significant source of conflict.
In order to provide certainty and stability, parents may agree to make a legally enforceable agreement about the amount or frequency of child support that is to be paid, as well as how these payments are calculated. Parents may also reach an agreement relating to additional expenses for a child including school fees, clothing or payments for extra-curricular activities. A Binding Child Support Agreement is a written agreement signed by both parents that allows parents to agree on these issues. This may be for an amount that is less than or more than the Child Support assessment that would otherwise apply.