numba | 7 Arguments FOR Child Support AGREEMENTS

March 3, 2025| July Solomon

7 Arguments FOR Child Support AGREEMENTS

Whether you are better off with an agreement or an assessment depends on your circumstances including the amount of income and wealth at stake. But it also depends on whether you pay child support or receive it.

Here are 7 arguments FOR an AGREEMENT, assuming you are the payer – read this the other way around if you receive child support.

1 – Extras

You can agree on one parent paying specific expenses, for example, private school fees and health insurance.

So if you are the payer, rather than paying money to the other parent and God knows what they spend it on, you pay directly for things that are important to you.

And if you are the payee, you have certainty that these extras are covered for good and don’t get caught up in other disagreements and tugs-of-war.

Assessments try to mimic this flexibility by allowing Non-Agency Payments, but these NAPs are a minefield for misunderstandings. So if you want to lock in extras, an agreement does that.

2 – Time with your Children

In an assessment, the receiving parent has a financial incentive to limit your care percentage. The less you see your kids, the higher the child support they receive.

With an agreement, that financial incentive is gone. So the other parent is usually more open to expanding your contact hours.

3 – Certainty

Better the devil you know than the one you don’t. With an agreement you know exactly what you will pay and you can plan accordingly.

You no longer fear letters from Services Australia increasing your child support yet again.

4 – Future Free

Your child support is not linked to your income. So as your career progresses or your business grows, your child support stays the same. Future gains are all yours. So it doesn’t stifle your motivation in a way an assessment might do.

5 – No Services Australia

Once all is signed and dusted, you can farewell your lawyers and hopefully will never hear from Services Australia again.

6 – Got your Back

Services Australia is usually not on your side. But your lawyer negotiating the agreement for you is.

7 – Child Maintenance Trust

Your agreement can include a Child Maintenance Trust (‘CMT’). You transfer capital out of before-tax income into the trust and then distribute it to your children at adult tax rates.

So these are some of the advantages an agreement has. But make sure you also consider: 6 Arguments AGAINST Child Support AGREEMENTS