Limited Child Support Agreement
A limited child support agreement is a formal parental arrangement regarding child support payments.
It is designed to give parents some flexibility while ensuring that child support obligations are met.
This type of agreement is legally enforceable but differs from other types because it requires the involvement of the Department of Human Services (DHS) and must meet specific criteria set by the government.
Limited child support agreements are particularly useful when parents want an arrangement that reflects their financial circumstances but still needs oversight from DHS.
What is a Limited Child Support Agreement?
A limited child support agreement is a written contract between parents regarding the financial support of their children.
Unlike binding child support agreements, a limited agreement must be based on an administrative assessment by the DHS.
The agreement allows parents to formalise their arrangement for child support, but it can be more easily altered or terminated if necessary.
These agreements must reflect at least the amount calculated by DHS, but parents can agree to pay more if they wish.
However, they cannot agree to an amount lower than the DHS assessment.
Key takeaway: A limited child support agreement is flexible but requires a DHS assessment to be valid, ensuring it meets a minimum support threshold.
When Can You Use a Limited Child Support Agreement?
Parents can enter into a limited child support agreement if they have received an administrative assessment from the DHS.
The assessment provides a baseline for how much child support should be paid.
Once this is in place, parents can create an agreement that matches or exceeds the assessed amount.
A limited agreement is appropriate when both parents agree on the amount to be paid but still want the option to update the agreement if their circumstances change.
Unlike binding agreements, which require independent legal advice, limited agreements can be modified or terminated without legal counsel, provided certain conditions are met.
Key takeaway: A limited agreement provides flexibility for parents who want to adjust the arrangement as their financial or personal situations evolve.
Key Features of a Limited Child Support Agreement
A limited child support agreement includes several important features that differentiate it from other types of child support arrangements:
- DHS Administrative Assessment: The agreement must align with a child support assessment from DHS.
- No Legal Advice Requirement: Unlike binding agreements, parents do not need to seek independent legal advice before entering into a limited agreement.
- Modifiable: Either parent can request a change to the agreement after three years or earlier if circumstances significantly change, such as a new child support assessment that is at least 15% different from the original assessment.
- Termination: A limited agreement can be terminated if both parents agree in writing or if a court sets it aside due to exceptional circumstances.
Key takeaway: A limited child support agreement offers flexibility, does not require legal advice to establish, and can be adjusted or terminated if necessary.
Need a Lawyer?
How to Make a Limited Child Support Agreement
To make a limited child support agreement, the following steps are generally involved:
- DHS Assessment: First, parents must obtain a child support assessment from the DHS to determine the base amount of support.
- Agreement Drafting: Both parents agree on the terms of the child support arrangement, which can match or exceed the DHS-assessed amount.
- Submission: The agreement is then submitted to DHS for approval. Once accepted, it becomes legally enforceable.
Parents may agree on payments that are either monetary or non-monetary (e.g., school fees or health insurance). Unless modified or terminated, the agreement remains in place for up to three years.
Key takeaway: A limited agreement must be based on a DHS assessment and can cover both monetary and non-monetary child support contributions.
Changing or Terminating a Limited Child Support Agreement
A limited child support agreement can be altered or ended under certain conditions:
- After Three Years: Either parent can request a review of the agreement after three years, regardless of whether their financial circumstances have changed.
- Significant Change in Assessment: If the DHS assessment significantly changes (15% or more), the agreement can be reviewed and potentially modified earlier than three years.
- Mutual Agreement: If both parents agree in writing, the agreement can be ended at any time.
- Court Intervention: In rare cases, a court may set aside the agreement if it finds exceptional circumstances that make it unjust to enforce.
Key takeaway: Limited child support agreements are flexible, allowing parents to modify or end them as circumstances change, either through mutual consent or significant changes in financial assessments.
Difference Between Limited and Binding Child Support Agreements
While both limited and binding child support agreements provide legally enforceable arrangements, they differ in key aspects:
- Legal Advice: Binding agreements require both parents to obtain independent legal advice before signing, while limited agreements do not.
- Flexibility: Limited agreements can be altered or terminated more easily, especially after three years or significant changes in circumstances. Binding agreements, on the other hand, are much harder to change without mutual consent or a court order.
- Support Amount: Limited agreements must align with DHS assessments, while binding agreements can deviate from these assessments, provided both parties agree and seek legal counsel.
Key takeaway: Limited agreements offer more flexibility and are easier to modify than binding agreements, which require legal advice and are more difficult to change.
A limited child support agreement provides a structured yet flexible way for parents to manage child support.
By requiring an administrative assessment from DHS and allowing for modifications over time, this type of agreement balances the needs of both parents and children.
While it does not require legal advice and offers flexibility for changes, it still provides a legally enforceable framework to ensure child support payments are made.
