How Will The New Child Support Guidelines Affect You?
Whether you are already involved in a domestic relations matter or are contemplating beginning the divorce process, the chances are extremely high (if you have children) that the new Child Support Guidelines will affect you. These revised guidelines, which will take effect January 1, 2009, have been designed to be clearer, simpler and more comprehensive than the previous version last amended in 2002. They will particularly affect you if you fall within any of the following categories:
- Never-married parents;
- Working primary caretakers; or
- Parents currently paying child support who have become increasingly involved in the parenting of their child(ren).
The following are a handful of the changes made to the Child Support Guidelines:
- Unreported and non-taxed income is included in the support obligation, and the Court may consider such factors as expense reimbursements, self-employment, or payment of personal expenses by a business.
- Military pay, allowances and allotments are now considered income.
- Children's disability benefits and insurance reimbursements for property loss are no longer included as income.
- Instead of automatically including or excluding overtime pay income from second jobs, the Court will now consider several factors, such as income history, the expectation that the income will continue to be available and the economic needs of the parties and the children.
- The Court may attribute (assign) greater income than reported to a parent who works "under the table."
- The income of non-parent guardians, such as a parent's significant other, may not be taken into consideration when calculating that parent's child support order.
- Previously, the income of a custodial parent who earned up to $20,000 per year was not taken into consideration, and the guidelines were based on a combined income of up to $150,000 (or $100,000 per individual). Now, all of the gross income from both parents is considered, up to $250,000 combined income.
- Both parents may deduct reasonable child care costs associated with employment, and the guidelines now apply to children up to age 18, as opposed to the 10% increase in support orders for children aged 13 and above that was previously in place.
- The guidelines have been extended to cover up to five children. Previously, they had only applied to families with up to three children.
- Any voluntary payments made by a parent to a child who is the subject of a prior order for child support may be deducted in whole or in part. The same applies for voluntary payments made to a former spouse who is the subject of a support order.
- Previously, child support guidelines could only be reviewed and modified where a material change in circumstances had occurred. The new guidelines include a provision allowing for a review every three years regardless of circumstances. In addition, a review of the prior support order may take place when either of the following occur:
o Health insurance previously available at reasonable cost is no longer available or no longer available at reasonable cost;
o Health insurance not previously available at a reasonable cost has become available.
- In order to not hold one or both parents automatically responsible for "Other Child-Related Expenses" the guidelines will take into consideration expenses such as "extra-curricular activities, private school, post-secondary education or summer camps."
Although many of these changes appear to be straightforward or minimal, they may have a significant effect on your current or future Child Support Obligation. For more information on how the revised Guidelines will apply to you personally, contact me or any of our Attorneys to set up a complimentary, no-obligation consultation. Be sure to also review our simple and convenient worksheets to learn more about obtaining optimal results in your domestic relations matter.
