Binding Child Support Agreements
A Binding Child Support Agreement allows Parents to make an agreement about child support payments after the breakdown of a relationship.You must get legal advice from a registered legal professional before you make a Binding Child Support Agreement. This is so you know what you’re responsible for in the agreement before it is made. Butlers Lawyers can help you negotiate an agreement with the other parent. We then provide a legal certificate which is attached to the agreement and will lodge this in draft form so that the Department of Human Services can be satisfied that it enforces the legal requirements, meets the needs of both parents and most importantly, can administer any clauses if the parents’ circumstances change.
The Department of Human Services won’t accept your agreement without a valid legal certificate.
If you want a lump sum agreement, you must get a child support assessment; You don’t need a child support assessment to make any other type of binding agreement.
Lump sum payments.
Lump sum payment can be:
the value of a transferred asset
The amount must be equal to or greater than the annual child support rate. This is then credited against your child support rate each year until the credit runs out. Once the lump sum has been used up, the paying parent will need to pay their regular child support payments in line with the child support assessment or agreement.
For assistance in preparing a Binding Financial Agreement, please contact our Legal Team.