Alimony vs child support: Understanding the key differences

Separation is stressful enough; add money worries and terms like "alimony" and "child support" can blur fast.

In Australia, we don't actually use "alimony", the law calls it spousal maintenance under the Family Law Act 1975.

In the sections below, we explain what each payment does, how they differ, and the practical steps that shape your rights and obligations.

At Unified Lawyers, we've guided over 1,000 families through financial settlements, property division and support arrangements. Our team delivers clear, tailored advice so you can make confident decisions.

Whether you're a separating parent, weighing up divorce, or a professional assisting someone else, this guide keeps things straightforward, read on for a comprehensive explanation.

What Is Alimony?

Spousal maintenance is financial support paid by one former partner to the other after separation or divorce, when the recipient can't adequately support themselves.

It's designed to help bridge the gap until the person can become financially independent. Under the Family Law Act 1975, a party to a marriage is liable to maintain the other to the extent they can reasonably do so, if the other can't meet their reasonable needs. This applies to both married and de facto couples.

Eligibility isn't automatic, it depends on a "threshold test." The court considers whether the applicant has a genuine need and if the payer has the capacity to provide support.

Factors influencing this include :

• Age, physical and mental health of both parties.
• Income, property, and financial resources.
• Responsibility for caring for children under 18.
• Earning capacity, including any impact from the relationship (e.g., time out of the workforce for childcare).
• Standard of living during the relationship.
• Any child support obligations.

Spousal maintenance can be paid as a lump sum, periodic payments (e.g., weekly or monthly), or through benefits like covering bills.

It's often temporary, such as "rehabilitative" support to allow time for retraining or job-seeking, but in rare cases, it might be ongoing if the recipient has long-term needs, like a disability.

Applications must generally be made within 12 months of divorce for married couples or 24 months of separation for de facto partners, though extensions can be sought in hardship cases.

How to apply (spousal maintenance in Australia)

1. Get advice & gather evidence : prepare a budget of reasonable weekly needs, bank statements, payslips, Centrelink/FTB details, medical or caring evidence, job search or retraining plans.
2. Try negotiation first : consider mediation and, if agreed, formalise by consent orders or a binding financial agreement.
3. File an application if needed : in the Federal Circuit and Family Court of Australia (or Family Court of WA for WA de facto matters). Include an Initiating Application, Affidavit and Financial Statement (Form 13).
4. Urgent or interim orders : where there"s an immediate need, you can seek urgent maintenance pending a full hearing.
5. Time limits : if you're out of time, you must ask the Court for leave to proceed.

For plain English Court guidance on spousal maintenance and urgent applications, see the Federal Circuit and Family Court"s resource page.

Courts also consider the broader social and economic context.

For example,
if one partner sacrificed career advancement to take on parenting duties, the court may recognise the long-term impact this has on their income-earning potential.

Similarly, cases involving family violence can affect the likelihood and scope of spousal maintenance orders.

Practical examples can illustrate how this works. For instance, a parent who left a full-time career to raise children may not immediately re-enter the workforce after separation.

In such cases, spousal maintenance can provide crucial support while they complete retraining or secure employment.

Conversely, if both parties have comparable incomes and similar earning capacity, the court may decide that spousal maintenance isn't necessary.

If you're unsure about your situation, consulting a family lawyer is crucial-every case is unique.

What Is Child Support?

Child support, on the other hand, is specifically for the financial needs of children after parents separate.

It's an ongoing contribution to cover essentials like food, housing, education, and medical care.

In Australia, this is primarily managed by Services Australia (formerly the Child Support Agency), which assesses and collects payments.

All parents have a duty to support their children financially, regardless of marital status or custody arrangements.

The amount is calculated using a formula that considers :

• Both parent' adjusted taxable incomes (taxable income minus a self-support amount and deductions for other dependents).
• The percentage of care each parent provides (e.g., nights the child spends with each).
• The costs of raising children, based on government research and the child's age (higher for older children).

For example,
the basic formula starts by combining parent's incomes, subtracting self-support amounts, and determining each parent's income percentage.

This is then applied to the estimated costs of the children, adjusted for care time.

If one parent has 100% care, the other might pay the full share based on their income percentage.

Parents can also make private agreements, but these should be registered to ensure enforceability.

Child support typically continues until the child turns 18, or longer if they're completing secondary education or have special needs. It's reviewed annually or if circumstances change, like income fluctuations.

A common scenario is where one parent earns a significantly higher income but has the children less often.

In this case, the higher-earning parent will usually contribute more to ensure the child's lifestyle remains as consistent as possible.

This helps reduce the financial burden on the primary caregiver and ensures the child has access to appropriate housing, schooling, and health services.

How Child Support Is Calculated (Australia)

The formula (at a glance): Services Australia uses both parent' adjusted taxable incomes, each parent's percentage of care, and an age based cost of children table.

The assessment works out each parent's income percentage, adjusts for care percentage, and sets a transfer amount so both parents contribute fairly to the child's costs.

Worked example (illustrative only) :

• Parent A ATI: $100,000; Parent B ATI: $60,000. Two children (8 and 12).
• Care: Parent A ~29% care (≈2 nights/week); Parent B ~71%.
• The combined income yields a cost of children figure for 2 children; Parent A's income share is higher, and with lower care their cost percentage exceeds their care percentage, so Parent A pays a transfer to Parent B.
• Exact figures change yearly - always check the current Services Australia assessment or use their estimator.

Types of child support agreements :

• Limited child support agreement: requires a current assessment and must be ≥ the assessed amount. No mandatory legal advice. Can be ended by either parent in writing after 3 years or upon a 15% notional assessment change.
• Binding child support agreement: both parents must receive independent legal advice. Can set any amount (above or below an assessment). It generally ends only if replaced by a new binding agreement or set aside by a court.

Objections & review : If you disagree with a decision: (1) Object in writing (strict time limits apply), and if still unsatisfied (2) apply for external review by the Administrative Review Tribunal (child support division).

Enforcement & non payment : With Child Support Collect or registered court orders, the agency can garnishee wages, intercept tax refunds, and in serious arrears issue Departure Prohibition Orders stopping overseas travel.

Adult child maintenance (over 18) : When a child is 18+, routine child support generally stops. A court can still order adult child maintenance to finish education or because of a disability. This is separate from Services Australia assessments and usually requires a court order or private agreement.

Key Differences Between Alimony and Child Support

While both involve post-separation payments, spousal maintenance and child support serve distinct purposes and follow different rules.

Here's a clear breakdown :

These differences ensure child support always prioritises the child's best interests, while spousal maintenance focuses on fairness between adults.

Can You Receive Both Alimony and Child Support?

Yes, It's possible, and common, to receive both spousal maintenance and child support if the criteria for each are met.

They are separate obligations: one for the child, the other for the former partner.

For instance, a primary caregiver with limited income might qualify for spousal maintenance to cover their personal needs, while also receiving child support for the children's expenses.

However, they can interact. Child support assessments consider care responsibilities, which might influence spousal maintenance claims (e.g., if childcare duties reduce earning capacity).

Services Australia can collect both if registered. Importantly, paying child support doesn"t exempt someone from spousal maintenance liability.

For example, imagine a mother caring for three young children full-time.

She may be entitled to child support to cover their day-to -day needs and spousal maintenance to assist with her personal living costs while she cannot re-enter the workforce.

On the other hand, if a parent shares care equally and earns a similar income to the other parent, the financial obligations may be much smaller, or even nil.

If you're in this situation, professional advice is key to ensure fair outcomes without double-dipping or underpayment.

Common Myths About Alimony and Child Support

Misinformation can add stress to an already tough process. Here are some debunked myths, tailored to Australian law :

• Myth : Spousal maintenance (alimony) always lasts forever. Reality: It's usually temporary to promote self -sufficiency. Permanent orders are rare and only for exceptional cases, like severe disability.
• Myth : Paying child support means you don"t have to pay spousal maintenance. Reality: These are independent; you can be liable for both if needs exist.
• Myth : Only women receive spousal maintenance. Reality: It's gender-neutral-anyone can apply based on need and capacity, regardless of gender.
• Myth : Both payments are tax-deductible. Reality: In Australia, neither spousal maintenance nor child support is deductible for the payer or taxable for the recipient.
• Myth : Child support is only for biological children or paid by fathers. Reality: It applies to adoptive, step, or other dependent children, and either parent can pay based on income and care.
• Myth : If you don"t agree with the Services Australia calculation, you can't challenge it. Reality: Parents can seek a review through the agency"s objection process or appeal to the Administrative Appeals Tribunal if necessary.

Understanding these truths can help you make informed decisions and avoid unnecessary conflicts.

Additional Considerations

There are some practical and strategic factors to keep in mind :

• Negotiation vs litigation : Many families resolve spousal maintenance and child support through private agreements or mediation rather than lengthy court battles. These agreements can provide greater flexibility and certainty.
• Enforcement : Services Australia has significant powers to enforce child support, including garnishing wages, intercepting tax refunds, or restricting passports. Spousal maintenance is enforced through court orders, which can involve penalties for non-compliance.
• Changing circumstances : Life changes, such as losing a job, illness, or children turning 18, may justify varying support arrangements. Acting quickly to seek variations can prevent arrears from accumulating.
• Cross-border issues : If one parent lives overseas, child support can still be enforced in many countries under international reciprocal arrangements. Spousal maintenance is more complex, but some treaties allow for recognition and enforcement.
• Registrable maintenance & collection : Court ordered spousal or de facto maintenance and court registered maintenance agreements can be registered with Services Australia for collection and transfer, which can simplify enforcement and reduce conflict.
• Western Australia de facto matters : Married couples across Australia use the federal system. WA de facto maintenance applications are heard in the Family Court of Western Australia, but the principles mirror the federal law.
• Tax & benefits : In Australia, child support and spousal maintenance are generally not taxable for the recipient and not deductible for the payer. Some amounts may still be relevant to adjusted taxable income or income tests; always check current ATO guidance.
• Record keeping : Keep proof of all payments (dates, amounts, references). Be cautious with paying expenses in lieu of child support unless permitted by your assessment or agreement-unapproved "third party" payments may not reduce arrears.
• Change of assessment (special circumstances) : If the standard formula is unfair (e.g., high costs of care, significant income disparities, private school fees, or cash poor/self employed payer issues), you can apply for a change of assessment.

FAQ's

1. Does 50/50 care mean no child support?

Not necessarily. If incomes differ, the higher earner may still pay support so both households contribute proportionately.

2. Can new partner income affect spousal maintenance?

Not directly, but the Court considers the financial circumstances of cohabitation and each party"s ability to meet needs.

3. Can I pay school fees instead of child support?

Only if your assessment or agreement allows it. Otherwise, direct payments might not count towards your liability.

4. How long does spousal maintenance last?

Often short term (to support retraining or re entry to work). It can be varied or ended if circumstances change; in rare cases it may be longer term.

5. Is there spousal maintenance for de facto couples?

Yes. Similar principles apply. WA de facto applications go through the Family Court of WA.

How Unified Lawyers can help

A high net worth divorce comes with complex financial structures, substantial assets, and legal challenges that require expert guidance.

Whether you need help with property division, financial disclosure, business assets, or binding financial agreements, our experienced family law specialists can provide tailored legal advice to protect your wealth and secure a fair outcome.

At Unified Lawyers, we understand that privacy, efficiency, and strategy are key in high net worth cases. We work closely with financial experts, forensic accountants, and tax specialists to ensure every asset is accounted for and that the best possible approach is taken.

If you're facing a high net worth divorce and want a strong legal team in your corner, get in touch with us today. We'll guide you through every step of the process and help you move forward with confidence.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.