What Is Child Support?

Child support is a legal obligation that ensures children receive the financial support they need to thrive. It is designed to prioritise a child’s well-being by covering essential expenses such as housing, education, medical care, and other day-to-day needs.

In Australia, child support obligations are typically determined by the Department of Human Services (Child Support Agency) using a formula that considers factors such as:

• The income of both parents.

• The amount of time the child spends with each parent.

• The child’s age and standard living costs.

While this formula provides a baseline, there are situations where parents may seek a change from the standard calculation. For example, additional expenses such as private school fees, extracurricular activities, or the unique medical or developmental needs of a child may necessitate a more tailored approach. These cases require careful negotiation or legal intervention to ensure the child’s needs are met fairly.

Parents may also choose to create binding or limited child support agreements that go beyond the administrative assessment. These agreements allow for greater flexibility, particularly when addressing non-periodic expenses like education costs, private health insurance, or significant one-off expenses. Having a formalised agreement ensures clarity and enforceability, providing peace of mind for both parties.

Understanding Spousal Maintenance

Spousal maintenance is a financial obligation designed to support a former spouse or partner who is unable to meet their own reasonable living expenses following separation or divorce. It recognises the financial disparity that can arise when one party has been financially dependent on the other party during the relationship, possibly sacrificing career opportunities or earning potential during the relationship to care for children and manage the household.

Purpose of Spousal Maintenance

The primary goal of spousal maintenance is to ensure that each party’s reasonable financial needs continue to be met after the breakdown of a relationship, where it is possible to do so.  It provides a safety net for those who cannot fully support themselves due to factors such as age, health, or limited work experience. Spousal maintenance aims to achieve fairness, allowing both parties to transition into independent lives.

Factors Courts Consider

Australian family law sets out specific criteria that courts examine when determining whether spousal maintenance is appropriate and, if so, the amount and duration of payments. These factors include:

• Financial Capacity of Each Party: Courts assess the income, assets, and financial resources of both parties to determine their ability to provide or require support.

• Needs of Each Party: Courts assess the reasonable living expenses and other financial requirements of each party.

• Earning Capacity: Consideration is given to the applicant's ability to earn an income, taking into account factors like age, education, skills, health, and time spent out of the workforce.

• Care of Children: The responsibilities of caring for children often limit a parent's ability to work full-time, which may warrant spousal maintenance.

• Standard of Living: Courts aim to ensure that neither party suffers significant financial hardship and that a reasonable standard of living post-separation is achieved where possible to do so.

• Length of the Relationship: Longer relationships often lead to more significant financial interdependence, influencing the court’s decision.

Types of Spousal Maintenance

Spousal maintenance can be structured to suit the unique needs of each family, with the most common types being:

• Urgent or Interim Maintenance: Temporary payments made during the early stages of separation to address immediate financial needs. This is particularly relevant in cases where one party faces an immediate financial crisis, such as an inability to pay for essential expenses like rent, utilities, or groceries.

• Periodic Payments: Regular payments (weekly, fortnightly, or monthly) that provide ongoing support for a defined period.

• Lump Sum Maintenance: A one-time payment made instead of ongoing periodic payments, often used to provide a clean financial break or settle complex financial disputes.