Understanding Binding Child Support Agreements (BCSAs)
When parents separate, ensuring that children are properly supported is a priority. While the Department of Human Services (Child Support) can assess child support using a standard formula, parents also have the option of making their own private arrangements. One way to do this is through a Binding Child Support Agreement (BCSA).
What is a Binding Child Support Agreement?
A Binding Child Support Agreement is a formal, legally enforceable agreement between parents about child support. Unlike informal arrangements, a BCSA provides certainty and flexibility by allowing parents to tailor child support to meet their children’s specific needs. A BCSA sets out exactly how much child support will be paid, how it will be paid, and for how long.
Importantly, a BCSA can:
- Be made with or without a Child Support Assessment already in place.
- Set child support at any amount, even if it is higher or lower than the assessed rate.
- Cover cash payments, direct payments of expenses (such as school fees, medical costs, or extracurricular activities), or a combination of both.
It can cover:
- Regular periodic payments (e.g., weekly or monthly amounts)
- Non-periodic payments (e.g., school fees, medical costs, extracurricular activities)
- A combination of both
Benefits of a Binding Child Support Agreement
- Certainty – Both parents know exactly what financial support is being provided.
- Flexibility – The agreement can be tailored to the children’s unique needs, such as private schooling or health care.
- Finality – Unlike Limited Child Support Agreements, BCSAs do not require periodic reassessment.
- Enforceability – The agreement is legally binding and can be enforced if a parent does not comply.
Requirements for a Valid BCSA
For a BCSA to be legally binding, strict requirements must be met:
- The agreement must be in writing and signed by both parties.
- Each party must receive independent legal advice about the effect of the agreement on the rights of that party, and advantages and disadvantages of the agreement at the time the advice was provided.
- Certificate signed by the Lawyer who provided independent Legal Advice be annexed to the agreement.
- The agreement has not been terminated or set aside by a court.
- Both parties must have a copy of the signed agreement and the lawyer’s statement.
These requirements ensure that parents fully understand their rights and the implications of the agreement.
When to Consider a Binding Child Support Agreement
A BCSA may be suitable when:
- Parents want to avoid ongoing dealings with the Department of Human Services.
- Children have additional expenses (e.g., private schooling, tutoring, medical needs).
- Parents want long-term certainty and stability in financial arrangements.
- Parents wish to resolve child support matters at the same time as property settlement or parenting arrangements.
Can a BCSA be Changed or Ended?
A BCSA generally continues until the child support period ends (usually when a child turns 18). However, it can be ended by:
- Entering into a new Binding Child Support Agreement, or
- A Court order setting it aside in limited circumstances, such as fraud, duress, or significant changes making the agreement impractical.
Summary
A Binding Child Support Agreement gives parents certainty, flexibility, and enforceability when managing their children’s financial needs. Because of its long-term and binding nature, it is crucial that each parent receives independent legal advice before entering into such an agreement. Done properly, a BCSA can provide stability and reduce conflict, helping both parents focus on supporting their children.