How is child support calculated?

Navigating the complex world of child support can be overwhelming, especially when laws vary from state to state and every case is unique.

But don’t worry — the information below can help you gain a deeper understanding of what a child support order is and how child support payments are calculated. 

What is child support, and how does it work?

Child support is a legal obligation for parents to financially support their children, even after a separation or divorce. It’s a legal way to ensure that parents continue to have financial responsibility for their children and that their children’s needs are met, even when they are no longer together. It is a crucial aspect of raising a child to make sure that they are not left to suffer the consequences of their parent’s separation.

How child support works varies depending on the state and the case’s specific circumstances. Missouri child support laws, for example, will not be the same as child support laws in New York.

In the United States, states regulate child support payments through civil statutes but use different formulas to calculate the appropriate amount.

Keep in mind that child support can be modified based on changes in circumstances, such as changes in income or employment.

Calculating Child Support

How much is child support, and how is it calculated?

Generally speaking, the process begins with determining the income of both parents. Depending on the situation, either parent can be ordered to pay child support.

Then, the state will use one of the following formulas to calculate the appropriate amount of child support that should be paid:

• The income shares model
• The percentage of income model
• The Melson formula

Nevertheless, it would help if you kept in mind that other factors still come into play in determining child support. Monthly income is important, but it’s not the only thing considered. Most states consider a whole host of other things when calculating child support.

For example, they might look at whether either parent receives or pays child support or alimony from a previous marriage. And, if children from a previous (or subsequent) marriage are involved, that will be considered.

Another critical factor in child support guidelines is who pays for the health insurance benefit premiums, health care costs, and sometimes medical expenses. They will also look at who pays for daycare and other childcare expenses. And, if either parent is required to pay union dues or has other items deducted from paychecks, that will also be considered.

All these factors, and more, are considered when determining child support. It’s a complex process that ensures the children involved are provided for in the best way possible.

Income Shares Child Support Model

Many states like California, Michigan, New York, and Ohio use the income shares model, which considers both parents’ income and the number of children involved. 

Let’s say, for example, that the non-custodial parent earns $2,500 a month, and the custodial parent earns $2,000 a month. Together, their total monthly income is $4,500. Using an economical table showing the expected costs of raising children, the court will determine that the monthly child support obligation is $1,125 for one child.

As you can see, childcare costs are factored into the final child support payment.

The non-custodial parent’s income is approximately 56% of the total parental income, and the custodial parent’s income is 44%. Based on this, the non-custodial parent would be responsible for paying $625 a month in support, which is 56% of the total obligation of the parents.

It’s worth noting that this is just an example, and the actual calculation will depend on the laws of the state where the parents live and on the case’s specific circumstances. Again, the formula takes into account each parent’s income and how much they each contribute to the overall financial needs of the child.

Percentage of Income Child Support Model

States like Texas and Alaska opt for the percentage of income model.

Instead of taking into account the income of both parents and the number of children, as is done in the income shares model, the court bases the payment on a specific percentage of the non-custodial parent’s income.

This percentage can vary depending on the state, but it is generally set at a fixed rate that does not change, even if the non-custodial parent’s income fluctuates. These states are known as “flat states.” Other states, known as “varying states,” have a percentage that changes depending on the non-custodial parent’s income.

While the percentage of income model may seem straightforward, it can be tricky to apply in practice. For example, a non-custodial parent with a high income may end up paying more than they can afford, while a non-custodial parent with a low income may not be able to pay as much as they should. But don’t worry; the court understands that every family’s situation is unique and will consider the parent’s ability to pay and the child’s basic needs. 

The Melson Formula of Calculating Child Support

The District of Columbia and some states, including Massachusetts, use a combination of the income shares and percentage of income models. There are three states, Hawaii, Delaware, and Montana, that use the Melson formula.

The Melson Formula differs from the ordinary income shares or percentage of income models.

It considers each child’s unique needs and the standard of living adjustment (SOLA) for that child. It’s like a supercharged version of the income shares model, allowing for more financial support as the parent’s income increases. It may be a bit more complex to calculate, but it’s worth ensuring that your child’s needs are met.

Let’s say a non-custodial parent has a net income of $5,000 a month while the custodial parent has an income of $3,000 a month. Together, the total monthly income is $8,000. Based on the child’s unique needs, including extra-curricular activities and private school education, the standard of living adjustment (SOLA) is set at $1,500 a month. 

The court would now determine that the total monthly child support obligation is $2,500. The non-custodial parent’s income is 63% of the total parental income, and the custodial parent’s income is 38%. Therefore, the non-custodial parent would pay $1,563 monthly in support or 63% of the total obligation.

The Melson formula ensures that the child’s needs and standard of living are met, and it allows for a more flexible calculation of child support payments as the parents’ income changes. If you need more help, you can always turn to the experts here at FreeAdvice.com.

Calculating Child Support: The Bottom Line

If you’re feeling the burden of paying too much or need help to make ends meet with the support you’re receiving, it’s important to take action before your bills pile up. And if you’re a parent or guardian in need of support for your child, don’t hesitate to contact your local child support office for assistance. 

If you’ve been ordered to pay child support, knowing what counts as income in a child support calculation is important.

We understand that navigating the world of family law can be overwhelming. That’s why we’re here to make finding the perfect attorney for your needs as easy as possible.

All you have to do is enter your ZIP code into our search box, and you’ll have access to a list of top-rated attorneys in your area. No need to worry about sharing personal information. We aim to empower you and make receiving child support as manageable as possible.

Case Studies: Exploring Child Support

Case Study 1: Income Shares Child Support Model

Sarah and David are divorcing in the state of California. Sarah has custody of their two children, and David has a monthly net income of $4,000 while Sarah has a monthly net income of $2,500.

Applying the income shares model, the court determines that the total monthly child support obligation is $1,200 for both children. Based on their income percentages, David would be responsible for paying $800 per month, which is 67% of the total obligation.

Case Study 2: Percentage of Income Child Support Model

Emily and Michael, who reside in Texas, are separating, and Emily will have primary custody of their child. Michael has a monthly income of $5,000.

In Texas, the percentage of income model is used, and the court has set the child support payment at 20% of the non-custodial parent’s income. Based on this calculation, Michael would be required to pay $1,000 per month in child support.

Case Study 3: The Melson Formula

Jennifer and Robert are going through a divorce in Massachusetts. Jennifer earns $3,500 per month, while Robert earns $6,000 per month. The court in Massachusetts uses the Melson formula, which considers the unique needs of their child and the standard of living adjustment (SOLA).

After considering these factors, the court determines that the total monthly child support obligation is $2,200. Robert’s income represents 73% of the total parental income, so he would be responsible for paying $1,606 per month, which is 73% of the total obligation.