There are two types of child support agreements: Binding Child-Support Agreements, and Limited Child Support Agreements.
Binding Child Support Agreement
A binding child support agreement takes the form of a binding financial agreement, about child support. As the agreement is to be binding, it is required that the parties obtain legal advice in drafting and terminating an agreement. In order to terminate or vary a binding child support agreement, a termination agreement must be agreed to by all parties.
Any agreements made prior to the changes in the law in place as of 1st July 2008 are transitional agreements, and are considered as binding financial agreements, however, containing minor differences.
Limited Child Support Agreement
A limited child support agreement is usually reached outside of court, between the two parents of the child for whom child support will be paid. Legal advice is not necessary. Such agreements are generally not used if the agreement is intended to be long term.
Firstly, an administrative assessment into the circumstances of the parties is required, to ensure that the situation and all assets of the parties are taken into account when determining a child support amount.
Limited child support agreements provide more flexibility to the parents. A feature of this is the fact that this type of agreement is easier to terminate than binding child support agreements. Termination can occur upon the making of a new agreement or a written agreement to end the existing agreement. It is also possible to terminate an agreement if there is a significant change in the circumstances of either or both of the parties.
How can Prime Lawyers help you?
If you are interested in entering into a child support agreement but are unsure of what type is most suitable to your needs, the family lawyers at Prime Lawyers are able to advise you of your options and assist you in deciding which agreement is best for you. Our family lawyers will then prepare the relevant child support agreement for you.