Understanding Child Support Agreements

Child support is the ongoing legal responsibility of separated parents to provide an appropriate level of financial support for their children to ensure that the child’s needs are met.

If parents are able to agree on the amount, frequency and method of payment, they are able to make a legally enforceable agreement.

There are two types of child support agreements:

  • Limited Child Support Agreements; and
  • Binding Child Support Agreements.


Limited Child Support Agreement

A limited child support agreement allows parents more flexibility to determine their own child support arrangement.

In order to make a limited child support agreement a child support assessment needs to already in place with the Department of Human Services (Child Support). Furthermore, the agreed child support amount must be equal to or more than the formula amount.

Limited child support agreements do not require the parties to have received legal advice before entering into the agreement, however it is highly recommended.

Related Article: Parent’s Guide To Child Support


Binding Child Support Agreement

A binding child support agreement is a written agreement signed by both parents about the amount, frequency and method of child support payments.

The binding child support agreement can only be executed after each parent has received independent legal advice. A Certificate of Independent Legal Advice must be attached to the binding agreement by your lawyer.

Unlike a limited agreement, a binding agreement can be made and accepted even if a child support assessment hasn’t been made. Also, parents are able to agree on any amount of child support, this could be less than, equal to, or more than the child support rate payable under the administrative assessment by the Department of Human Services (Child Support).

Note, both limited and binding child support agreements are legally enforceable financial agreements and should not be entered into lightly. You should always seek legal advice before making a child support agreement.


Note: This is general information advice only and does not constitute specific legal advice. If you would like further information in relation to this matter or other legal matters, please contact us on 03 9620 0088 or email info@resolveconflict.com.au


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