26 Aug How does child support work? Getting the best results for your family
As any parent knows, raising children costs a significant amount of money. It’s not just the food and clothes, but the extra-curricular activities, the medical appointments and the school excursions. Never mind the latest squishy or Nintendo game they just have to have.
Of course, it should fall under the responsibility of both parents to help cover the costs of raising their children. Whether the parents are together or not is irrelevant. You may not be living under the same roof, but you are their parent for life.
Most of us have a vague understanding of child support. But if you’re going through a separation – or considering one – you’ll want to know exactly how child support works.
This article will cover everything you need to know, including who pays child support, how much and how it’s paid? By the end, you’ll have a deeper understanding of how child support works in Australia.
How does child support work?
To understand how child support works, we need to look at several parts of this sometimes-complicated process. First of all, what exactly is child support?
[H3]What is child support?
Child support is the money paid by a separated parent to help cover the cost of raising their children. It’s typically paid by one parent to the other. But in some cases, it can be paid by both parents. Child support can also cover non-biological children in the cases of adoption or surrogacy, for example.
Generally a parent will be required to pay child support until the child reaches the age of 18. Exceptions to this can include if the child is adopted by someone else or becomes self-sufficient and living independently from either parent. Child support can also be extended beyond 18, in cases such as if the dependent will finish schooling after 18.
Who pays child support?
Typically, if your percentage of care is less than your share of the combined income, then you’ll be the parent to pay child support. In other words, if you have the children less time, you’ll be more likely to pay child support to cover the cost of the time the children are with the other parent.
This is not set in stone of course. Many factors play into how this will be decided.
Who decides how much child support is paid?
First, if both parties can agree on the amount, method and frequency of payments, they can make their own legally enforceable agreement, known as a binding child support agreement. This is a great option because it’s generally quicker and can be registered with the Child Support Agency.
However, the majority of child support cases in Australia are dealt with by Services Australia – Child Support (Services Australia) under the Child Support (Assessment) Act 1989 (Cth) (Child Support Act). In this situation you can apply to Services Australia for a child support assessment.
They will use a formula to calculate the amount of child support to pay. Certain factors will be considered, such as the number and ages of children, each parent’s income, the percentage of care provided by each parent and more.
There are some situations where the Child Support Act doesn’t apply. In those situations you’ll need to apply for a child maintenance order under the Family Law Act 1975 (Cth) (Family Law Act).
How is child support calculated?
Services Australia uses this basic formula to calculate child support for parents with an assessment. They take into account factors when applying the formula, including:
- the number of children
- the children’s ages
- how much money you need to support yourself
- both parents’ incomes
- the percentage of care each parent provides for the children.
If you’re wondering how much child support you could potentially receive, potentially pay or that might be appropriate generally, you can also use this child support estimator for a rough guide.
What is the payment process?
An important part of understanding how child support works is navigating the payment process. The parent receiving the payment can choose between three different options:
- Self-management: When both parties can agree on the amount, when and how to pay, they can manage the entire process themselves.
- Private collect: This is when the amount of child support is decided by an agreement, child support assessment or court order. The separated parentwill then work out when and how to pay.
- Child support collect: This is a good option for separated parents who don’t want to have anything to do with each other. In this case, the amount of child support is again decided by an agreement, child support assessment or court order. Services Australia will also tell the parent when and how to pay. They’ll collect the child support payments from one parent and transfer it to the other.
What if a child support payment is missed?
Child support payments aren’t optional. They’re your obligation. If you don’t pay on time, you may have to pay a late penalty.
Of course, sometimes missed payments can’t be helped. If you can’t make a payment in full, call the Child Support Enquiry Line as soon as possible.
Do I need a lawyer?
Lawyers guide you to put your best case forward for the greatest possible outcome. They can also ensure you understand everything throughout the child support process. This is particularly important when entering into a legally enforceable agreement. If your situation changes at a later date, you may wish to engage a lawyer to help you request a change to the child support amount.
If you have more questions about how child support works, check out our free resources page. If you’d like a member of the Toomey Family Law team to support you through the child support process, please get in touch today. We have the skills and experience to help you achieve the best outcome for your family.