terminating a child support agreement

Child support agreements must be approached with caution as it is extremely difficult to vary or terminate an agreement already in place. There are limited ways to terminate a child support agreement, and this will depend on how the agreement has been drafted and what provisions are included. A child support agreement is generally terminated by a new agreement that replaces it, or by a termination agreement. In summary, a binding child support agreement may be terminated by:

1. Both parties creating a new binding agreement which includes a provision that the previous agreement is terminated;
2. Both parties entering into a termination agreement which has the effect of terminating the previous child support agreement;
3. A Court Order setting aside the child support agreement under Section 136 of the Child Support (Assessment) Act 1989 which includes the following circumstances:
   • The party’s agreement was obtained by fraud, undue influence, duress or unconscionable conduct;
   • Exceptional circumstances arising after the agreement is made, which would cause hardship to the child or a party to the agreement if the agreement was not side aside.
4. Notifying the Registrar that the parent receiving the child support ceases to be an eligible carer. 

The notion and definition of ‘exceptional circumstances’ raised above are often focused upon when these matters are brought before the Family Courts. The matter of Keane & Keane and Ors [2013] FamCA332 defined exceptional to be the whole circumstances needing to be taken into account.