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What is a Binding Child Support Agreement?

A Binding Child Support Agreement (“BCSA”) is a private agreement between parents that outlines the payment of child support and other child related expenses, such as school fees or medical expenses by both parties.

 

A BCSA allows parties to:

  1. Negotiate child support payments that may be more or less than the support payable under a child support assessment by the Child Support Agency;
  2. Reach an agreement that suits their circumstances and specific child related expenses; or
  3. make a lump sum payment rather than ongoing regular payments.

 

For a BCSA to be binding and enforceable, both parties are required to receive independent legal advice about the advantages and disadvantages of the BCSA pursuant to section 90G or 90UJ of the Family Law Act 1975 (Cth).

The Child Support Agency can collect ‘periodic child support payments’, to be made pursuant to a BCSA if it is registered with the Child Support Agency. It is, however, important to be aware that the Child Support Agency will not collect ‘non-periodic payments’ required to be made pursuant to a BCSA.

It is important to note that a BCSA will remain in effect regardless of any changes in care arrangements for the children, unless otherwise agreed between the parties. Parties can only terminate or amend a BCSA by either entering into a new BCSA, a Court Order, or by written agreement by the parties to terminate the original BCSA.

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