Binding child support agreements are official documents that outline what separated or divorced parents should be paying towards the costs involved in raising their child each month. But how is child support calculated in a fair way? While there are many factors that are taken into consideration, there are certainly ways to ensure that child support agreements are fair and reasonable. The Department of Human Services (Child Support) has a formula for calculating periodic child support which may or may not be adopted into a binding child support agreement. These Agreements can make allowances for periodic child support and non-periodic child support such as school fees, extra-curricular activities, private health insurance or medical costs.
As child support lawyers in Australia, our team sheds a bit of light on this often misunderstood matter. In this article, we’ll provide a basic outline of how child support is calculated in Australia.
Determining Income
One of the first things that happen when it comes to calculating child support is determining the income of each parent as well as the joint income of the parents. Parents that make more may end up being expected to pay more in child support, but the percentage of care is also a factor.
Working Out The Percentage Of Care
By the time child support is worked out, the percentage of care and parenting should have already been worked out. The percentage of care, and how much time each child spends with each parent plays a significant role when it comes to calculating child support.
Calculating The Cost Of The Children
The next step in the process is to work out the monthly costs involved with each child. This includes school fees, food, extra-curricular activities, medical insurance and any other monthly expenses. Of course, these costs can fluctuate monthly, but approximations can be made.
Finalising The Child Support Agreement
Once all the information above has been gathered, a fair and reasonable child support agreement can be created based on each parent’s income, the percentage of care, and the costs involved with each child. Both parents may be asked for their thoughts and input before the document is finalised. Both parties are required to receive independent legal advice for the Agreement to be binding with each solicitor completing a certificate that they have advised their clients on the advantages and disadvantages of entering into the Agreement and the impact on their rights at the time of receiving the advice of entering into the Agreement..
Are you looking for trusted and reliable child support lawyers in Australia? Here at Lapointe Family Law, our family lawyers can assist when it comes to issues of child support and other family-related legal matters. Have any questions for our experienced team? Please feel free to get in touch with us!
