The goal of child support is to give children the same standard of living they would have if their parents lived together and combined finances. There is a court formula that computes the amount of support for most cases. The calculation is based on each parent’s income. It also counts health insurance costs, childcare expenses, and time spent with each parent. The formula usually works well for most children.
However, the calculation is not straight forward for parents who have financial resources beyond a W-2 paycheck. Factors that can complicate the determination of child support include:
- Self-employment
- Small business income
- Rental properties
- Royalties
- Commissions that vary widely
- Bonuses tied to employer performance
- Reliance on friends or relatives for the costs of living
- High income tax rates
- Deferred compensation
- Equity compensation (such as stock or stock options)
- Trust distributions
- Military BAQ, BAS, and BAH
- Inheritances
- Significant gifts
Depending on parental income, the Court may also require parents to pay for “extras” beyond weekly child support, such as:
- Extra-curricular expenses
- Private school tuition
- Boarding fees
- College expenses
- Study abroad
- Other Expenses
How We Help
We work with you and your financial professionals to generate child support calculations that are fair to you and your children. We can make complicated financial matters understandable to mediators, arbitrators, and judges.
