Parents have an obligation to financially support their children.
The amount of child support payable is based on a formula applied by the Department of Human Services – Child Support and is based on the ages of the children, the number of nights the children spend with each parent and the respective incomes of each parent. There is an online calculator on the Department of Human Services – Child Support website which will give you a guide as to the amount of child support you will receive/have to pay.
Often, parents agree to enter into a limited or binding child support agreement. Child Support Agreements are registered with the Department of Human Services – Child Support Agency. Agreements can make provision for the payment of less or more child support than what you have to pay pursuant to any assessment and can also make provision for payments to third parties such as schools, private health insurers and so on.
What’s the difference between a limited and binding child support agreement?
A limited child support agreement can be terminated by either party unilaterally once it has been in place for 3 years. A binding child support agreement stays in place until the last of your children turns 18 or finishes secondary school, subject to various other terminating events.
You require independent legal advice to enter into a child support agreement.