Family Law Library

Limited Child Support Agreements

A Limited Child Support Agreement is usually reached outside of court, between the two parents of the child for whom child support will be paid. Legal advice is not necessary for the agreement to be binding. Such agreements are generally not used if the agreement is intended to be long term.

Firstly, an administrative assessment into the circumstances of the parties is required, to ensure that the situation and all assets of the parties are taken into account when determining a child support amount.

Limited Child Support Agreements provide more flexibility to parents. For instance the Limited Child Support Agreement is easier to terminate than Binding Child Support Agreements. Termination can occur upon the making of a new agreement or a written agreement to end the existing agreement. It is also possible to terminate an agreement if there is a significant change in the circumstances of either or both of the parties. The agreement can also be terminated by one party without the agreement of the other.

Limited Child Support Agreements can be entered into without legal advice.  Either party to the agreement can terminate the agreement after 3 years or if the amount that would be payable under a Child Support Assessment changes by more than 15%.  The amount of Child Support payable under a Limited Child Support Agreements must be at least the amount that would be payable under the Child Support Agency formula.