When parents separate, they both continue to have financial
responsibility for their children. Child support is money
paid by one parent to the other, to contribute towards the
financial support of the children. The amount to be paid can
be negotiated between the parents and can be calculated by
the Child Support Agency.
Generally, a parent only needs to provide child support
until a child turns 18 years of age. However there are
exceptions to this rule.
Separated parents have a number of options to work out
arrangements - they can:
(a) agree on how much child support will be paid and then:
- make the payments directly from one parent to the other
(an informal arrangement);
- enter into a legal agreement to formalise the payments (a
private child support agreement).
(b) register with the Child Support Agency to assess how
much child support should be paid (this is calculated
through a legislative formula) and then:
- make the payments directly from one parent to the other;
- have the CSA collect the money from one parent and
distribute that money to the other.
The potential benefits of having a private arrangement are
that:
- neither parent has to deal with the Child Support Agency
(normally parents have to be in contact with the CSA on a
frequent basis);
- the amount to be paid is fixed (normally the amount to be
paid changes each year, and sometimes more often);
- parents can agree to make payments in lump sums (normally
you have to pay weekly or monthly);
- parents can agree to “in kind” payments, for example
payment of school fees.
The potential disadvantages of having the CSA assess the
amount of child support are:
- both parents will usually have to deal with the Child
Support Agency on a frequent basis;
- the amount to be paid varies from year to year or whenever
there is a change in a parent’s income;
- parents have to make payments each month (rather than lump
sums);
- sometimes only a basic amount of child support is required
to be paid, as the formula looks at income not assets.
If one parent believes that the amount that has been
assessed is not fair because it does not accurately reflect
their circumstances or the child’s circumstances, then they
are able to apply for a ‘change of assessment’. There are
specific rules prescribing when the amount can be charged.
Child support can be complicated.
Murdochs can provide advice based on your individual case,
taking into account all of your financial circumstances.
WHERE TO NOW?
If you would like to speak with an expert to discuss your
family law issue, please call us on (07) 3007 9898 or send
us an email at
enquiry@murdochs.com.au