What Is a Limited vs a Binding Child Support Agreement?

Limited Child Support Agreements

This is a written agreement that sets out the agreement reached between the parties about the payment of child support. Your agreement can include payment of cash or non-cash items, such as school fees and health insurance. The agreement needs to be in writing and signed by both parents. There is no requirement for either party to seek legal advice before entering into a Limited Child Support Agreement but at Burbank & Brown we recommend you do so.

Before the Child Support Agency will accept this type of agreement there must be a Child Support Assessment in place. A Limited Child Support Agreement is limited by the amount payable under the agreement. The amount payable under a Limited Agreement must be equal to, or more than, the Child Support Assessment.

Binding Child Support Agreement

Like a Limited Agreement is a written agreement that sets out the agreement reached between the parties about the payment of child support however there is no limit on the amount payable under a Binding Agreement.

A binding agreement can be made whether you already have a child support assessment or not. The binding agreement can be made for any amount that you and the other parent agree to, including reducing a paying parents’ administrative assessment to zero. Your agreement may include payment of cash or non-cash items. Examples of non-cash items are school fees and health insurance and both parties to the agreement must obtain independent legal advice before making or ending a binding agreement.