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ARTICLE · 05 OCTOBER 2020

COVID-19 impacts on binding child support agreements

The Court accepted that the father was genuinely under financial pressure due to the impact of COVID-19 on his business.

AustraliaFamily and Matrimonial

In a recent decision of the Family Court, a father succeeded in obtaining orders to set aside a Binding Child Support Agreement (BCSA) on the basis that his financial circumstances had been significantly impacted due to COVID-19. However, the father was unsuccessful in having his outstanding child support arrears extinguished.

By way of background, the parties had entered into the BCSA in 2012, which provided that the father pay the mother the sum of $1,350.00 per month with a yearly increase of 2%. At that time, the father was earning in excess of $140,000.00 per year. After losing his job, the father started a business in 2015. By 2016, the father's business had financial difficulties and he applied to the Court (for the first time) seeking orders to set aside the BCSA. On that occasion, the judge did not set aside the BCSA, but ordered that it be stayed (put on hold), and that the father pay the mother a reduced amount of $580.00 a month until further order –

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