Although there is no “setlist” of what a child support agreement includes, the biggest disagreement between the parties commonly arises over whether this financial support should include mobile phones, other inessential technology, costs of transportation, and extra-curricular activities.
A major concern amongst parents who have children under their care is the payment and costs associated with extra-curricular activities. As sport, music, dance, and other similar activities are popular with children of all ages, the costs associated with these can be quite significant over a long period of time.
Unlike child support payments which are determined upon set criteria and formula, non-periodic payments associated with extra-curricular activities do not have a ‘one size fits all’ answer for which party pays and in what proportions.
As is the case with many families, the child’s involvement in extra-curricular activities often brings great joy, accomplishment, and pride to both the parents and children.
Therefore, when determining how these activities are to be paid for between the parties, it is essential to keep the best interests of the child in mind, and whether an equitable solution can be reached. This approach often priorities the children’s continued emotional wellbeing and development rather than something the parents can hold over each other and fight about.
Payment of school fees and extra-curricular activities of the children post-separation can often feel burdensome on one party, especially in situations where the other party is refusing to contribute.
If you remain at an impasse with the other party about financial arrangements for these categories, mediation is the best course of action. This process often results in the parties reaching a compromise on issues such as extra-curricular activities, payment of insurance and medical bills, cost of school items (uniforms, books, equipment, etc.), and school fees.
If a parent does not agree with the amount of child support being paid either by them or to them, mediation and negotiation is the first point of order between the parties.
If an agreement is unable to be reached, the Child Support Agency has a review/amendment process which can be sought to determine whether the amount paid is appropriate. If the mediation process fails, a party may apply to the Child Support Agency who has the authority to determine which party is responsible for the payment of private school fees and how this payment is to be shared. If a party disagrees with the ruling made by this Agency, a review process is available.
There has generally been a disposition in society’s understanding of child support that the Court will always award the mother with primary custody which entitles her to receive financial support from the father.
This is simply incorrect. Each case is unique, and, requires careful consideration of the facts to determine the arrangement which is in the best interests of the child.
Australia has numerous existing child support arrangements within the international community. This is referred to as a reciprocating jurisdiction under section 29B of the Child Support (Assessment) Act.
Under this legislation, the Agency is able to make and continue a child support assessment where the party resides overseas in a reciprocating jurisdiction, provided the other parent is resident in Australia. The Agency has further powers in relation to:
1. Registering and enforcing an overseas maintenance assessment;
2. Registering and enforcing an overseas maintenance order;
3. Registering and enforcing an overseas ‘agency reimbursement liability’;
4. Registering and enforcing arrears that have accumulated under any of the above;
5. Transmit an application for review/variation of liability made; and
6. Assist overseas authorities with location and service requests for Australian parties.
Recent amendments to the Child Support (Assessment) Act may have a significant impact on current and future binding child support agreement made between parties.
The recent changes through the implementation of the Family Assistance and Child Support Legislation Amendment (Protecting Children) Bill 2018 will directly affect parties who enter into a binding child support agreement that finalises child support without the adoption of the formula provided for by the Child Support Agency assessment. These changes are retrospective, which means agreements entered into prior to this amendment will still be affected.
Essentially, these changes may result in the binding child support agreement to be suspended or even terminated in circumstances where:
- There is a change in the care arrangements for a child so that the party who previously received child support payment now cares for less than 35% of all overnights with the child;
- The parent who cares for the child ceases to be an eligible carer for more than 28 days; or
- The Child Support Registrar is satisfied that there are special circumstances in relation to the change in the care of the child.
Importantly, if the care arrangements only change for one child to which the binding child support agreement relates, but not other children, the binding child support agreement will be suspended or terminated in the context which relates to that child.
It will continue to operate as intended in relation to other children, provided the parent continues to be an eligible carer of that child/ren. If you have a binding child support agreement that was signed before 01 July 2018, we strongly advise that you contact our office to review this agreement and ensure it remains binding in the future.
This is essential to avoid the agreement being suspended or terminated as a result of the new legislative changes to the Child Support (Assessment) Act.
Alternatively, if you find that an agreement cannot be reached and you need legal advice regarding your options, please do not hesitate to speak with one of our accredited family law specialists today.
At James Noble Law, our first and foremost position is to promote mediation between the parties, to allow for future negotiations and parenting arrangements to be similarly resolved.
Article Source: Child Support Agreement
