How does child support work after divorce in Australia?
It’s a question we’ve heard more than once as experience and trusted family lawyers in Perth.
Under Australian Family Law, both parents are responsible to provide for their children, but in the aftermath of a divorce or separation, parents can sometimes experience a period of financial hardship and could even find themselves being unable to support their children.
In many cases one parent will be required to make regular payments to the other parent, contributing to their children’s living costs.
While it’s always best for parents to reach an amicable child support agreement, sometimes that is not possible. When parents cannot agree on the amount or on any other term of the child support, an application for a child support assessment can be submitted to Services Australia.
But how does one go about applying for child support, who is entitled to apply, and how does it actually work?
Knowing the complexities of divorce law and how complicated applying for child support online can be for many people, we’ve put together a short guide to answer the question of how does child support work after divorce in Australia.
What is Child Support?
Child support is the continued financial assistance provided by one parent to another for the care and upbringing of a child or children after a divorce or separation. It is intended to cover the costs of living essentials, such as housing, clothing, food, education, medical care and other basic needs of the children.
The terms of the child support can be agreed upon by both parties, as part of the overall divorce or separation settlement, or handed down by a Court.
Is Child Support the Same as Spousal Maintenance?
No. While child support is solely intended to cover children’s expenses, spousal maintenance is the financial support provided by one spouse to another following a break up in the marriage or relationship.
Many people may not be aware that under Australian Family Law, divorcing or separating partners may be legally obliged to support each other if one partner is unable to support themselves.
Child Support Assessment vs Self-Managed Child Support
There are two basic options of arranging child support.
- Self-Managed Child Support
This is suitable for couples who reach an amicable agreement on their own and decide how, when and how much one partner will pay to the other.
- Child Support Assessment
This option is for couples who cannot reach an amicable agreement on their own. After and application is made, Services Australia will decide who is to pay and how much that will be. They can arrange to collect and transfer the payments to the receiving parent and can also collect overdue payments if the paying parent falls behind.
Once an assessment is obtained, parents can also enter into a binding child support agreement, which then becomes legally binding and enforceable. Binding child support agreements can be complex and must meet certain requirements. Legal advice is required for this process.
How is Child Support Calculated after Divorce in Australia?
As each case has its own unique circumstances and challenges, there is no one set rule that applies to all. Child support is calculated taking several factors into account. These include:
- Both parent’s incomes or ability to earn
- Age, health, needs and costs of the children
- The time each parent spends with the children. This is called “care percentage”.
Is Child Support a Set Percentage of Your Income?
Child support payments are not based on just a fixed percentage of income. It’s more complicated than that.
Instead, they are determined using a formula that takes into account various factors, including the costs of raising children and the financial circumstances of both parents.
Although it does not cover every individual’s situation, an estimate can be obtained using the Child Support Estimator by Services Australia.
At What Age Does Child Support Stop in Australia?
In most cases, child support is paid until a child turns 18 years of age, or becomes self-supported, but parents can set their own terms to suit their specific circumstances. For instance, if a child continues to study or may have a disability that requires funding for a longer period or even indefinitely.
Can Child Support Be Backdated?
Although rare, in certain circumstances child support can be backdated to the date of separation or the date when the child support application was lodged. This depends on individual circumstances and should be discussed with a family lawyer.
If Circumstances Change, Will Child Support Payments Change Too?
Yes, child support payments can be adjusted if there is a significant change in the circumstances of either parent, such as changes in income, care arrangements, or the needs of the children.
If you’re self-managing your child support, you will have to discuss it with your ex first. If you can’t reach agreement, you will have to apply to the Court for any changes to your child support.
Is Child Support Payable if You Share Equal Custody of the Children?
Yes, it can be. Even if parents share equal care of the children, one parent may still be required to pay child support, if there is a significant difference in their respective incomes or if one parent has more care responsibilities than the other.
Will Getting Remarried Affect Child Support Payments?
Remarriage generally does not affect child support payments directly. However, changes in financial circumstances due to remarriage may be considered if child support arrangements need to be reviewed.
Navigating child support after a divorce or separation can be complex, but understanding your rights and responsibilities is essential for the well-being of your children.
At Hickman Family Lawyers, we are here to provide expert guidance and support tailored to your individual circumstances. Contact us today to discuss your child support concerns and learn how we can assist you in securing the best possible outcomes for your family.
Remember, ensuring your children are properly supported financially is not just a legal obligation but a fundamental way to provide for their future.
