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Can I do Lump Sum Child Support Payments

Making a Lump Sum Child Support Payment 

It is possible through a Child Support Agreement for one parent to make a lump sum payment to the other parent.

By making a Lump Sum Payment, they can credit or offset their liability under the Child Support Agreement.

A Lump Sum Payment can include the transfer of property (e.g. a house or unit).

Lump sum payments provisions have certain conditions which include:

 



 

  • It may only be applied though a Binding Child Support Agreement;
  • An administrative Child Support Agency assessment must be in force;
  • The value of the lump sum must be specified in the Binding Child Support Agreement;
  • The value of the lump sum must be equal to or higher than the annual rate of child support as assessed by Child Support Agency.

The lump sum payment is treated as a credit towards Child Support payments.

Child Support payments will resume and be payable as normal once the credit has reduced to zero.

More you should know about Child Support

Read about when payment of Child Support will stop.

There is a difference between Child Support and Child Maintenance. If you don’t know what the difference is, you can read more in our information sheet What is Child Support and Child Maintenance.

If you need to know who must pay Child Support, you can read more in our information sheet Who is liable to pay Child Support.

We also have a separate information sheet answering the question Does Child Support have to be paid.

Whether you arrange to have child support paid privately or collected through the Child Support Agency, you will need to know what to do to arrange for Child Support payments to start. This is explained in our information sheet What is the procedure & steps involved for Child Support payments.

How much Child Support should be paid is commonly an issue between parents. There is a method the Child Support Agency use to assess Child Support which is explained in our information sheet How is Child Support Calculated.

If you do not agree with the decision made by the Child Support Agency when they assessed the amount of Child Support to be paid then you should read the information sheet What if I disagree with a Child Support Agency Decision.

Some parents reach agreement about how much child support should be paid. there are different types of private agreements you can enter into. Read more in the following information sheets:

 

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