Binding Child Support Agreement or Limited Child Support Agreement?
When parents reach an agreement in relation to child support, there are two options available to formalise that agreement.
Those two options are:
- A Binding Child Support Agreement; and
- A Limited Child Support Agreement.
What is the Binding Child Support Agreement?
A Binding Child Support Agreement is a contract between the parents which sets out the terms of the agreement they have reached in relation to the amount of child support for their child/children and how that child support will be paid.
The main aim of a Binding Child Support Agreement is to formalise the future child support payable (usually until the children are all 18 years old or until they complete their final year of grade 12) and for the parents to have certainty in this respect.
Before entering into Binding Child Support Agreements, both parents must obtain independent legal advice from a solicitor before entering into a Binding Child Support Agreement.
What is a Limited Child Support Agreement?
A Limited Child Support Agreement is a less formal written agreement that can be entered into between parents in relation to formalising future child support. It is in the same format as a Binding Financial Agreement, but does not require independent legal advice and has some different rules that apply.
For a Limited Child Support Agreement, there must be a child support administrative assessment in place and the amount payable in child support must be equal to or more than the current child support assessment.
Limited Child Support Agreements can be set aside or varied in the following circumstances:
- Automatically after three years (unless the parties agree to continue with the Agreement);
- If the parties circumstances change by more than 15%; or
- Whenever either parent asks for a new notional assessment.
To decide what child support agreement best suits you and your circumstances, contact the team at James Noble Law today and book a FREE 20-minute initial consultation.
If you are considering changing your child’s name in QLD (Queensland), then contact the team at James Noble Law today for a free, no-obligation 20-minute consultation today to schedule an appointment with one of our Qualified and experienced Family lawyers Brisbane.
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You may also like to know more information about the
- Difference Between Limited & Binding Child Support Agreements
- Binding Financial Agreements & Provisions of Family Law Act
- Are binding financial agreements help to improve Relations between two Parties in Australia?
- How To create Airtight Binding Financial Agreements? How Tight Is An Airtight BFA?
- Binding Financial Agreements: Are they worth the paper they are written on?
- Binding Financial Agreement & Provisions of Family Law Act.