
Child Support payments usually end when a child turns 18 years old.
Many parents are accommodating, feeding, and otherwise financially providing for dependent young adult children, without support from the other parent. Most in this situation will attest that in today's society, where more young adults are remaining at home and financially dependent, a lack of child support past the age of 18 is wholly inappropriate.
Private Adult Maintenance Agreements
Some parents opt for a private agreement on Adult Child Maintenance, often with the parents including their adult children in negotiations and paying costs directly on the child's behalf or giving an allowance to the child, the lower-earning parent or both. Some parents elect to formalise their agreements as a Binding Child Support Agreement (“BCSA”). Parents choosing this option will each require separate and independent legal advice.
A Child Support Assessment is not necessary before entering into a BCSA. However, often, the basis of calculating the assessable Child Support estimate is used as a starting point to negotiations. Your agreement can include payment of cash or non-cash items, such as school fees and health insurance.
It is generally complicated to have the conditions of a BCSA set aside or to vary a sealed Binding agreement.
Another form of private parenting agreement is a Limited Child Support Agreement ("LCSA").
The main differences between a BCSA and LCSA are:
-
parents are required to have a Child Support Assessment in place for an LCSA;
-
independent legal advice is not necessary for an LCSA; and
-
an LCSA requires the Human Services Child Support Agency to issue “nominal assessments” each year, and if the amount payable under the nominal assessment is more than 15% different to the agreed amount payable, either parent can give notice they wish to terminate the LCSA.
Usually, a lower threshold needs to be met to satisfy the Court to have an LCSA set aside or varied due to a change in a parent's financial circumstances, or when the terms of the agreement are no longer considered proper or adequate.
Read More: Child Support Agreements
Adult Child Maintenance Ordered by the Court is the exception rather than the rule
An order for a parent to pay for an adult child is more of an exception to the rule. The Act provides that, an Adult Child Maintenance Order in relation to a child 18 years old or over must not be made unless the Court is satisfied that the provision of the financial support is necessary…”
In determining the necessity of the provision of the maintenance for an adult child the Court might consider the necessity for either of the following reasons:
-
to enable the child to complete their education or training; or
-
because of a mental or physical disability of the child.
Is Adult Child Maintenance necessary?
Often in separated families, there is a dispute between parents as to whether the financial demands of a child, or an opposing parent, on the other parent to contribute financially towards the desired education path or extracurricular activities of a child are necessary.
Disagreement can be exacerbated when, before separation, the expectations of the future educational path of the child were higher than finances allow after separation. Take for example an adult child who is studying at university and wishes to take an exchange opportunity to another country for a semester that involves travel, accommodation and tuition fees over and above what they would incur were they to remain local. While the exchange experience may be beneficial, and it may assist the child in furthering their future career and networking opportunities, it is debatable whether it is necessary.
Matters are less contentious when there is a child with a significant disability or health issues.
What does the Court consider in Ordering Adult Child Maintenance
The Court might consider the following in deciding if an order should be made:
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Necessary expenses to meet the child's proper needs;
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The contribution the child is making, or their capacity for them to make a financial contribution (including the availability of scholarships and bursaries). There is an expectation that, where possible, adult children will contribute to their own support by working part-time. If the child is not able to work due to their illness or disabilities, this should be evidenced by a medical certificate;
-
The likelihood that the child will succeed in their endeavours, and whether they appear to be qualified to pursue and subsequently profit from their studies or training;
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Whether or not the child would encounter hardship as a result of having to give up on their education and training through lack of means;
-
Each parent's capacity to provide financial support; the Court includes a consideration of each parent’s income, expenses, financial resources, and potential earning capacity. If the earning capacity of a parent is impacted by their role as a carer for their adult child, this is factored into consideration.
Necessary expenses include:
-
The adult child’s share of general living expenses; food, groceries and cleaning supplies, utilities, housing and transport (even if a parent pays this);
-
Costs associated with their education and/or training, such as textbooks and stationery, internet costs and computer equipment, enrolment, tuition and TAFE fees, excluding HECS and other government student loans. For adult children with special needs, expenses associated with their disabilities or illness are considered; and
-
Medical needs including doctors’ visits, prescriptions, optical, dental, specialist support services and other medical costs.
Adult Child Maintenance may also pay for necessary expenses such as clothing, toiletries, and personal grooming, transport and phone costs.
Entertainment and other discretionary expenses are generally not included.
When does Adult Child Maintenance Stop
The Court may stipulate that the Court order stops when:
-
The adult child finishes their education or training, for example, completes their degree or attains their qualification. So, the Court may not make an order for a second degree or qualification if the adult child chooses not to pursue a career in the initially chosen field and elects to continue studying; or
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A particular time has elapsed, for example, a period of three years assigned to allow the adult child to finish their education. There may be conditions in the order, for instance, that a child maintains regular attendance and achieve satisfactory results. If the adult child fails several subjects, the order may stop;
-
If the adult child is no longer afflicted by the illness or disability
-
; or
-
After a particular time; for example, a period of three years, to allow for a review of the child’s illness or disability.
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VIDEO: The role of an Independent Children's Lawyer: A guide for parents
Published by, Christine Weston
Founding Director and Creator of Divorce Resource
Australian Nationally Accredited Mediator and Divorce Coach
Connect with us:
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This article contains general information only. For advice regarding your own personal circumstances, always seek individual advice from a qualified professional. Read the full Divorce Resource.com.au Disclaimer here
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