How Much Child Support To Pay
Different jurisdictions | Dead-beats | Child Support & Welfare | Court services | How much to pay | Collect
How is the amount of child support determined?
Federal law now requires that the amount of a child support payment be set in accordance with a guideline. Having a guideline is believed to prevent widely different amounts of child support being ordered from courtroom to courtroom. Guidelines provide an objective basis for the determination of the amount of support to be paid. As a result, most states have established formulas that are used to determine the amount of the payment from one parent to the other.
What other items do formulas consider?
Time Spent With Child. Besides the respective net incomes of the parents, the amount of time each parent spends with the child is factored into the formula. Since a parent who spends more time with the child is most likely incurring greater expense in raising the child, the "custodial parent" (a term that is often used in association with the parent who has the physical custody and responsibility the majority of the time) is considered to spend more money on the child than the "non-custodial parent" (the parent without primary physical custody). Since the custodial parent spends more of his/her income on the child, the child support formula includes this factor in determining the amount of child support to be paid by one parent to the other.
Number of Children. Along with the amount of time that a parent spends with a child, the number of children in common between the parents is often considered. The theory is that certain fixed expenses do not rise with the number of children for whom support must be provided, so the actual amount of support per child is lower given the greater number of children in common.
Special Circumstances. In addition, special circumstances may require a greater amount of child support to be paid. Special circumstances, such as extraordinary medical expenses, special educational needs, travel expenses incurred for child visitation, uninsured catastrophic losses and the cost of basic living expenses for children from another relationship, can affect the amount of guideline child support that is to be paid.
Since there are a number of factors that go into the formula to determine guideline child support, some states have approved computer programs designed specifically for determining the amount of child support. Use of a computer program to determine the amount of child support is a very objective method for determining child support.
Proper analysis of all the factors can have dramatic effect upon the determination of the guideline child support amount. Depending upon the method that is used in a given state, seeking a lawyer's professional advice can be well worth the cost.
How do child care costs get factored in?
The cost of child care can likewise be apportioned between the parents. Because child care costs are incurred so that a parent is able to earn income, it means that a greater amount of combined income is available for the support of the child. Since both parents benefit from the cost of child care, this cost is divided between the parents (usually 50% each). The parent who actually pays the child care expense receives payment from the other parent.
How long must child support be paid?
The duration of this responsibility depends upon state law. All states require both parents to be financially responsible for their child during the child's minority, generally through the child's high school years. A few states have extended the time for financial responsibility beyond the minority of the child. Child support can be terminated in the event of the death of the child, if the child goes on active duty in the armed forces, or if the child becomes emancipated or self-supporting.
What income items do typical formulas cover?
The formula is based on the respective net incomes of the parents. Federal and state income taxes,Social Security and Medicare tax,health insurance,union dues and other mandatory expenses are subtracted from a parent's gross income (that is, income from all sources including, but not limited to, wages and investments) to arrive at his/her net income.
How do you show income?
The court can require documentary evidence, such as pay statements, profit/loss statements of sole proprietorships, and tax returns, to be produced and certified as true under penalty of perjury. The intent is that all income received by a parent will be considered when his/her net income is being calculated.
If you suspect that a party is hiding income -- such as by not reporting "cash" or "off the books" income -- it may be difficult to prove, but an experienced lawyer or professional investigator usually is able to help you figure out how to do so.
What are the tax consequences of child support?
For federal income tax purposes, child support payments you receive are not income ? they are tax free to you. The parent who makes the payments cannot deduct the amount as an expense on his or her federal tax return. However, sometimes parents are able to negotiate higher alimony (which is deductible by the parent making payments and taxable income to the receiving parent) to generate tax savings.
My income dropped dramatically when I was laid off my job and cannot make my child support payments. Is there any way I can lower the payments?
Unexpected, significant decreases in income can be a reason to request modification of your child support order. Before incurring the additional expense of a court-mandated change, one route is to ask the other party to agree to a temporary reduction or deferral (if need be). If successful, put the terms in writing, sign, and date the document, preferably with the advice of a lawyer.
If that does not work, ask the court to modify the amount of the child support owed in the future, explaining your major and unavoidable drop in your financial situation, that the income is not likely to be replaced soon, and why the change would be fair. Most courts are sympathetic and receptive to making necessary changes in child support when you have experienced a financial setback. Again, paying a lawyer to help can pay for itself dozens of times over.