Organizing Child Support in Divorce-Part 2
The prior post, “Organizing Child Support in Divorce-Part 1,” introduces the concepts of child support in divorce.
Let’s review the main points from that post:
- Child support overall is meant to cover the main costs of raising the children.
- Both parents pay child support. Who actually pays how much to whom is a function of the parenting plan that the couple agrees to.
- Child support is intended to help fund household expenses such as the mortgage, utilities, food, gas, home insurance, and the like (“Basic”). It is also intended to cover the ordinary expenses of the child such as clothes, school lunches, school supplies, and haircuts (“Add-ons”).
- The “Basic” part of child support uses the New York State Child Support Standards Chart to determine the percentage of the parents’ combined parental income (after certain deductions) that is to be devoted to the children’s housing and care. The percentage is based on the total number of children the couple has. It ranges from 17% for one child to up to 35% for five or more children. (Note that this is a guideline; the couple may agree on a different arrangement by following NYS procedures.)
What Are the “Add-Ons” in Child Support?
This process recognizes that there are other potential expenses that the parents should share beyond those covered by the Basic child support amount.
Which Child-Related Expenses Are Considered for Add-Ons?
The following categories of expenses are examples of what can be covered in this type of child support. The costs to be shared are based on the actual costs paid when the associated services are provided to the children:
- The cost of the children’s health insurance coverage.
- Children’s medical expenses that are not covered by their health insurance.
- Child care, if applicable.
- Education expenses, if applicable.
How Is Add-On Child Support Calculated?
What each parent pays is based on the percentage of their gross income against the couple’s total gross income.
Let’s continue the hypothetical Bob and Sally example from Part 1. They both work and have two children together. Table 1 shows their total gross income (before deductions) and the percentage of the total that each parent brings in.
| Table 1: Income | Bob | Sally | Total |
|---|---|---|---|
| Gross annual income | $75,000 | $35,000 | $110,000 |
| Each Parent's Income as % of Total | 68.2% | 31.8% | 100% |
Table 2 shows the expenses eligible to be covered by child support.
| Table 2: Eligible Child Expenses | Annual Amount |
|---|---|
| Children's Health Insurance | $1,200 |
| Uninsured Medical Expenses | $800 |
| Child Care | $4,000 |
| Total | $6,000 |
Table 3 show the amount each parent is responsible for regarding eligible expenses:
| Table 3: Allocation of Children's Expenses | Bob | Sally | Total |
|---|---|---|---|
| % of Total Income | 68.2% | 31.8% | 100% |
| Children's Health Insurance | $1,200 x 68.2% = $818.40 | $1,200 x 31.8% = $381.60 | $1,200 |
| Uninsured Medical Expenses | $800 x 68.2% = $545.60 | $800 X 31.8% = $254.40 | $800 |
| Child Care | $4,000 x 68.2% = $2,728.00 | $4,000 x 31.8% = $1,272.00 | $4,000 |
| Total "Add-ons" | $4,092 | $1,908 | $6,000 |
The Total Child Support Picture from Parts 1 and 2
If we add the sample numbers from the Part 1 post, it gives you a total picture of what Bob and Sally’s child support obligations are for their two children:
| Child Support Components | Bob | Sally | Total |
|---|---|---|---|
| Basic (Part 1 article) | $17,315 | $5,495 | $22,810 |
| Add-ons (this article) | $4,092 | $1,908 | $6,000 |
| Total Child Support | $21,407 | $7,403 | $28,810 |
What If You and Your Spouse Want to Do Something Different for Child Support?
Plenty of parents deviate from the guidelines for many good reasons. Mediation provides an excellent process for parents to discuss and agree upon a more equitable, balanced, and individual way to share money. There are New York State Child Support Guidelines DRL 240 set forth reasons why deviations from the guidelines might be warranted. Scroll down to section “1-b (f)” in that document for a full list. To help you find it, the first sentence of that section reads: “(f) The court shall calculate the basic child support obligation, and the non-custodial parent’s pro rata share of the basic child support obligation.”
One of the most common reasons why parents deviate from the guidelines is that their children spend equal time with each parent. When this parenting plan works, parents often look at their respective budgets to make sure that each of them have about the same amount of funds available to provide for household expenses and discretionary income. Other reasons parents may come up with their own plan are:
- The high-income parent may be designated as the non-residential parent for the purposes of child support. In many cases that makes sense so that each parent has enough funds to meet expenses.
- The specific amount is usually guided by budgets as a good context to discuss sharing money.
- Often parents will decide to share direct, related child expenses like clothes, hair cuts, and school supplies in an equitable manner.
How Child Support Can Be Modified Over Time
There are guidelines that suggest how child support can be reevaluated. The guidelines provide eligibility to discuss changes; there are no automatic changes that are implemented. The New York State Child Support Guidelines DRL 240 indicate that child support can be reconsidered based on the following:
- A substantial change in circumstances.
- Three years from the commencement of child support for Orders entered, last modified or adjusted after October 12, 2010.
- If there has been a change in either party’s gross income by 15% since the order was entered, last modified or adjusted after October 12, 2010.
- Cost of Living (COLA), as applicable.
- If the deviation factors that might have been used in the original Order no longer apply.
Many of my clients create their own formula for changing child support. They can designate their own percentage of income and agree to look at incomes annually or designate their own timing. Some parents build in a cost of living adjustment but do not look at future incomes.
Supporting Your Children
The “Organizing Child Support in Divorce-Part 1” post and this one have focused on the important financial aspects that provide for your children’s health and well-being. It is a complicated process, but if both parents focus on what is best for the children, the plan will go a long way towards helping them adjust to their new lives.
Resources
The official NYS Domestic Relations Law Section 240: Custody and child support; orders of protection, sections 1-b (a) through 1-b (l). The most referred to subsections are:
- DRL 240 1-b (a): Purpose of this child support subdivision: “The court shall make its award for child support pursuant to the provisions of this subdivision.”
- DRL 240 1-b (b): Definitions used in this section
- DRL 240 1-b (c): What determines the amount of basic child support obligation
- DRL 240 1-b (f): Factors the court may use to adjust the basic child support obligation
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