How is Child Support Calculated?

Q: What factors are considered into child support calculation?

Each state has its own method of calculating child support.  In most states the calculated amount will depend on the incomes of both parents which is called the Income Shares formula or the income of absent parent alone which is called the Percentage of Income Formula.  In just a few states the money that gets paid out in monthly expenses is taken into consideration before a child support award is determined.  That calculation is called the Melson Formula and it is used only in the states of Delaware, Hawaii, and Montana.

Q: What income is used to calculate child support?

Child Support should take into account all income which can include multiple jobs, bonuses, commissions, rental incomes, etc.  It should not be limited to a paycheck or a singular paycheck.  Unfortunately many paying parents do not report their entire incomes and parents receiving the child support sometimes have trouble proving that there is more income than the absent parent lets on or is given the opportunity to have the facts heard in court.  My clients are always coached on this process.  There are proven ways to assert yourself in court and parents on the receiving end should learn them or they stand the risk of being walked over in the process.

Q: Are child support guidelines simply guidelines or must we adhere to them?

Child support guidelines are simply a rule of thumb which is designed to provide a basic standard of support for absent parents to provide for their children.  Of course there is nothing which stops an absent parent from paying more than the basic support ordered and provided for by the standard guidelines.  The absent parent cannot pay less than what is ordered.  If the two parents agree to deviate from the child support guidelines whether   higher or lower (and the operative word here is ‘agree’) then they can arrive at their own arrangement of what works for them.  The Judge also has a small degree of wiggle room (usually between 5%-15%) where they can deviate from the guidelines as well.   

Q: Do I have to request child support by law or can I opt out? 

That depends on where you live.  In some states the courts like to see that some level of child support has been ordered.  Not that it really matters because most child support orders aren’t worth the paper that they are printed on but perhaps it gives the administration a temporary ‘feel good’ moment.  To get out of it the custodial parent may have to assure the court that the child will be adequately supported.  In other states it’s entirely up to you if you don’t want to petition for child support.  Either way it’s important to know that whether you petition for child support or not, that decision does not affect custody or visitation rights. You are not free and clear of the other parent unless their parental rights have been severed.

Q: Can I negotiate a one-time settlement for child support?

This question comes with a short answer followed by an extremely complex one.  The short answer is yes you can negotiate a one time settlement.  Let me begin by telling the short version of a similar situation that I helped a client through.  Wanda (not her real name) had a child out of wedlock with a married celebrity.  They negotiated a $500,000 (back in the 90’s) one-time settlement for her to go away and take the baby with her, agree to never petition for child support and never to darken his door step again – which I think she would have done had he not stiffed her.  They signed a contract; his attorney gave her the $10,000 down payment with the balance to be delivered by a certain date.  He did not deliver.  She begged for the money, she pleaded for the money, she was ignored.  She ended up on welfare after spending over $90,000 of her own money trying to take this character back and forth to civil court.  By the time I got involved she was destitute.  The happy ending is that I was able to help her.  It took almost 3 years to muddle through the mess but in the end, she got PAID.  I say all of this say that depending on the circumstances it very well may be the best bet but you MUST be able to forecast adequately the needs of the child from now until college graduation (or more if there are disabilities involved).  For beginners – there are the basic of food, clothing and shelter.  Then there are medical concerns – health insurance, unpaid medical that the insurance does not cover, tuition, school expenses, work related child care, emergencies not foreseen, etc, etc.  Do to proper projections; you would need an excellent team of professionals.  A contract attorney, a Family law attorney, a Child Support Coach and an Accountant.  Who’s going to pay the price for all of these heads?  If he is the one who wants you to go away then he should be the one to pay for it all and make it can happen.  It can be best for all concerned but be careful not to leave yourself open to loopholes.   Good Luck