by Bruce L. Dorner
Now that your divorce is moving forward and you have moved out of the old house, your spouse wants child support to help pay the bills. You’re already struggling to pay for your apartment and to find time to spend with the kids. You’re right. Divorce is a very expensive process in both financial and emotional terms!
A question I’m often asked is, “how much will I have to pay for child support?” Unfortunately, the answer requires a significant number of mathematical computations. It has become complex enough that most attorneys use computer software to generate the figures. This article outlines the highlights of the computation. It is not intended as a comprehensive review of the law relating to child support. Your own case may present special considerations. As always, you should check with your attorney if you think an error was made in computing your child support obligation.
Our starting point will be a divorce where both parties will share joint parenting rights and responsibilities (formerly called “custody”), but one parent will have primary care of the children. The other parent will have liberal and frequent parenting time and responsibilities (formerly called “visitation” or “custodial rights.”
With the family structure outlined, let’s talk about what goes into the child support calculation. The starting point, as you might expect, is the New Hampshire statute, RSA 458-C, entitled “Child Support Guidelines.” The purpose of this law is to provide for a uniform system to compute child support on a statewide basis. In the broadest sense, child support is a percentage of the net income of the parents. The percentage changes as the number of children increases. For one child the figure is 25%; for two, 33%, for three, 40%; and for four or more, 45%.
The next question is, a percentage of what amounts? We start with “gross income,” as defined by RSA 458-C:2 IV. In summary, it encompasses income from any source, including earned and unearned money. It is not limited only to wages and salaries. Your unemployment compensation, and other benefit programs are counted. Oh, and don’t think that you can simply stop working to beat child support. The statute clearly provides that gross income may also include “the difference between the amount a parent is earning and the amount a parent has earned in cases where the parent voluntarily becomes unemployed or underemployed…”
Our statute permits several accommodations to the gross income starting point. The term used is “adjusted gross income.” (If it sounds a bit like doing a tax return, you’re right! The federal government has had an impact on child support computations too.) The following are examples of adjustments. There are others, which space prevents from being listed. You’ll get a credit for fifty percent of the self-employment tax, if you are self-employed. You’ll get a credit for mandatory retirement contributions, and you’ll get a credit for actual state income taxes paid if you work outside New Hampshire.
Another group of permitted adjustments includes money actually paid for child care expenses, or medical insurance coverage for the minor children to whom the child support order applies. You’ll get credit for any other court-ordered support you have actually paid for any other children. Not each of the items provides a direct credit toward child support, but they do have an impact to lower the end result.
In extraordinary situations further adjustments may be made at the discretion of the court. Some examples include very high medical expenses, great disparity between the incomes of each parent, unusually high expenses for the non-custodial parent to visit with the children, and split or shared custody arrangements.
Once we enter the income figures from each parent into the computer and apply applicable credits, a ratio between the earnings of each parent is computed. The percentages are mapped out and the end result appears. I assure you, I’ve never had a paying parent say to me, “is that all I owe?” More often I hear, “I can’t afford that!” On the other side of that coin I rarely hear the receiving parent say, “that’s more than I expected.” So, with both parents being somewhat distressed with the figures, it is probably a fair arrangement. It is always challenging to run two households where, prior to the divorce, there was not enough money to comfortably run a single household.
Lastly, child support is not forever. Most divorce decrees provide that child support ends when each child reaches the age of majority, graduates high school, or upon the occurrence of some other agreed event. Child support may also be adjusted in the event of unforseen substantial changes in circumstances at any time by petition to the court. It can be adjusted by an agreement of the parties which is approved by the court. Also, either party may request a review of the child support order every three years without being required to show any substantial change in circumstances.
This article provides general information only. It is not legal advice. You should consult with your own attorney before making any legal decision.