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CHILD SUPPORT: HOW MUCH AND FOR HOW LONG? |
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In a divorce or paternity suit, is the amount to be paid for child support predictable? |
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Is "net income" the same as take home pay? |
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Is income from overtime, second jobs, bonuses, commissions, etc. considered "income"? |
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I am self employed and have overhead expenses. Can I deduct from my gross income all of my overhead expenses? |
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I have an extraordinarily high income and one child. 20% of my net income for child support would produce child support that is way beyond a child's needs. ("Affluenza") Can the court order less than 20% of my net income for child support? |
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In addition to child support can the child support obligor be required to pay other expenses of the children? |
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Can the parent who contributes half or more of the child support claim the child as a dependent exemption for income tax purposes? |
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Does child support stop at age 18 of a child? |
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If my income fluctuates, will my child support be based on an average of past incomes? |
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Must child support be payroll deducted? |
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| Q: |
In a divorce or paternity suit, is the amount to be paid for child support predictable? |
| A: |
Yes. The legislature prescribed the following child support guidelines:
Number of Children Percent of Supporting Party's Net Income
- 1 child 20%
- 2 children 28%
- 3 children 32%
- 4 children 40%
- 5 children 45%
- 6 children or more 50%
While the judge has the discretion to go below or above the guidelines, it takes unique circumstances to cause a variance. |
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| Q: |
Is "net income" the same as take home pay? |
| A: |
No. The law defines net income. It is gross income "from all sources" minus certain deductions: federal and state tax, social security, mandatory retirement contributions, union dues, health insurance premiums, former court ordered child support obligations actually paid and repayment of business debts. |
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| Q: |
Is income from overtime, second jobs, bonuses, commissions, etc. considered "income"? |
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Yes. The statute says that income from all sources is considered. Thus, rental property income, stock dividend income, interest income, etc. are all considered income for the purpose of calculating child support. |
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| Q: |
I am self employed and have overhead expenses. Can I deduct from my gross income all of my overhead expenses? |
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No. The law in this area is not solid, and the present law is not totally sensible. The child support statute makes "expenditures for repayment of debts that represent reasonable and necessary expenses for the production of income" deductible. Recent cases held, in effect, that if a child support obligor borrows money to pay business expenses, then there may be a deduction for repayment of the debt, but if it is merely an expense, it is not deductible for child support purposes. This is not sensible, but it is the law.
It seems that a person who is in business for himself and paying child support would be well served to become incorporated (subchapter S) so the corporation can pay him a wage, and it would be the corporation paying the overhead for the business and thus overhead should be deductible. |
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| Q: |
I have an extraordinarily high income and one child. 20% of my net income for child support would produce child support that is way beyond a child's needs. ("Affluenza") Can the court order less than 20% of my net income for child support? |
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Yes. The law, however, in this area is in a state of flux. The odds are that a child support obligor who is in a very high income bracket may not be required to pay the statutory percentage of child support. |
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| Q: |
In addition to child support can the child support obligor be required to pay other expenses of the children? |
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Yes. It is customary for the noncustodial parent to be required to pay half of the custodian's child care expenses during the time the custodian is employed, and for the non-custodial parent to obtain health insurance coverage (pay the premiums) for the children. |
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| Q: |
Can the parent who contributes half or more of the child support claim the child as a dependent exemption for income tax purposes? |
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Yes, if the divorce (or paternity) judgment is silent on the point. If the divorce judgment or agreement states which parent is to receive the dependency exemption, the judgment or agreement controls depending on the number of circumstances. (Also, see tax Q&A) |
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| Q: |
Does child support stop at age 18 of a child? |
| A: |
Yes, but child support may be extended if the child is still attending high school at age 18. |
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| Q: |
If my income fluctuates, will my child support be based on an average of past incomes? |
| A: |
Ordinarily child support is based on current income (year-to-date earnings), or more usually on the last year's income tax returns. If, however, the child support obligor's income fluctuates significantly from year to year, income averaging may be employed. From case law it appears that three years of income averaging would be acceptable, but six years is too long. |
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| Q: |
Must child support be payroll deducted? |
| A: |
Usually. If a child support order was entered after October 1, 1999 , child support must be withheld from the obligor's employment income and paid through the State Disbursement Unit (SDU) if the recipient is receiving public aid, or the support payments are made through income withholding. If the support order was entered between October 1, 1994 and September 30, 1999 , support may be paid directly between the parties, but must be paid through the SDU if support is paid pursuant to income withholding. Child support paid pursuant to orders entered before October 1, 1994 may be made directly between the parties. These payments are not required to go through the SDU, although SDU will accept and process them (regardless of whether they are paid by income withholding, wage deduction, or the obligor). |
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