What is a child support agreement?

Child support agreements allow parents to reach a financial arrangement on the matter of supporting their children. Such agreements are most commonly used after parents separate or divorce. The contents of an agreement can cover a wide range of expenses, including school fees, medical costs, and after-school tutoring fees.

How is it different from a parenting plan?

We have previously mentioned parenting plans on our WeChat official account. What is the fundamental difference between a child support agreement and a parenting plan? A parenting plan is not enforceable, meaning that if one party breaches a term of the parenting plan, the law will not compel enforcement of the plan. A binding child support agreement, on the other hand, has legal effect. The reason for signing a child support agreement is that, with legal effect, many potential future disputes can be better avoided, and if the agreement is breached, there are legal avenues to resolve the matter.

Types of child support agreements

Generally, there are two types of child support agreements:

1. Binding child support agreement

2. Limited child support agreement

Today we will focus on the binding child support agreement.

Binding child support agreement

In order to reach a binding child support agreement, both parties need to agree on the amount of child support to be paid. The amount can be more or less than the amount that would be payable under a child support assessment.

Independent legal advice

Both parents must seek independent legal advice. Your legal adviser must complete a legal certificate confirming that they provided you with legal advice before you signed the agreement. You must submit this together with your agreement. If you do not, your binding agreement will be invalid. However, you can still enter into a limited child support agreement with the other parent.

There are, however, some situations where the legal advice will be considered non-independent:

– For example, if M and A are the parents of the child, and a lawyer provides legal advice to both M and A, then in this situation it cannot be regarded as having received independent legal advice.

Formal requirements of the agreement

A binding child support agreement must:

1. Be in writing and signed by both parents, or by a parent and an eligible non-parent carer;

2. Include a statement that each party received independent legal advice before signing the agreement and was aware of their advantages and disadvantages under the agreement; and

3. Include an annexure, signed by the person who provided the legal advice to each party to the agreement, certifying that the advice has been provided.

How much support needs to be paid?

It can be any amount, but both parties must agree.

Lump-sum payment

Before a binding agreement for a lump-sum payment can be accepted, there must first be a child support assessment. The support paid must equal or exceed the annual child support rate payable under the child support assessment.

About child support assessments

When it comes to child support assessments, there can be quite a number of criteria and conditions involved. There are rules about the residency requirements of the parents, who is eligible to apply for an assessment, and more. For related enquiries, please consult our professional lawyers.

Can a binding child support agreement be amended?

To change a current binding child support agreement, you must make a new binding agreement that replaces or terminates the current one.

If the parents cannot agree on amending the agreement, one party can apply to the court to set aside the current agreement. This means that the agreement will no longer apply from the date of the court’s decision.

Terminating a child support agreement

A child support agreement remains in force until the end date specified in the agreement, unless it is terminated earlier under other circumstances. The end date can be express or implied. If no end date is specified and no terminating event occurs, the provisions of the child support agreement will continue until the child to whom the agreement relates turns 18. If the child is still in school after their 18th birthday, the agreement may be extended with the consent of both parents.

Final thoughts

Why do parents need to enter into a child support agreement after separation or divorce? A binding child support agreement has legal effect. Compared with a parenting plan, which is more flexible and convenient to draw up, a binding child support order allows both parties to resolve any future dispute over child support through legal means.