What is a child support agreement and how do I set one up…

Child support is a payment of money from a parent who doesn’t live with their children or shares care of their children with the other parent. In situations where couples separate, there is often an imbalance of care duties between the parents. Child support payments seek to provide financial support to the parent who is primarily responsible for the care of the child.

In New Zealand the Inland Revenue Department is the governing body in respect of child support arrangements. 

Usually, the IRD oversee managing the payments, to ensure that they are being made regularly, as well as chasing up any debts arising as a result of failed payments. They also set payments upon applications for formula assessments. 

There are three different ways to set up a child support arrangement in New Zealand.

Formula Assessment

The first way of setting up child support payments is to get a formula assessment from the IRD. This involves an application to the IRD containing information regarding both parents’ incomes and the care arrangement for the child. The IRD will assess this information and decide on what it thinks is a fair sum of child support to be paid. They will then arrange for  child support to be paid based on this decision.

This option can be helpful if you and your ex-partner are unable to come to agreement on the amount of child support to be paid.

Voluntary Agreement

The second option for setting up child support payments is through a voluntary agreement. This means that you and the other parent agree on an amount of child support, then register the agreement with the IRD. This allows you to have control over the amount of the payments, but gives IRD the responsibility of ensuring that payments are made on time and in the correct amount.

This is a useful option as it formalises the agreement but allows parents to decide on a figure that they agree to be fair.

Private Agreement

The third and final option is a private agreement between the parents. This involves the parents agreeing on an amount of child support that they think is reasonable and managing these payments completely by themselves. 

This is a good option if the parents are on good terms but can lead to difficulty if the relationship sours. In this situation, if the other parent of your child fails to meet payments or stops paying child support altogether, it will be up to you personally to chase this debt up. This can prove to be expensive, as you may have to seek remedies through Court proceedings. 

If you want clarity as to child support payments, or you’re not sure which option is best for you, it pays to seek advice from a professional with experience in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Shaun Cousins and Matthew Binnie

Please note that Rainey Collins is not contracted to provide Legal Aid, other than in the Treaty of Waitangi area.  We therefore are unable to take on any Civil or Family Legal Aid work. If you require Legal Aid in those areas, you can search the list of Legal Aid lawyers on the Ministry of Justice website.