Child support
Navigating child support in California can feel overwhelming, but understanding the process is crucial to ensuring the well-being of your children. The state calculates child support based on a formula that considers both parents' incomes, the amount of time each parent spends with the children, and other financial obligations. The goal is to provide for the child’s needs in a manner that reflects both parents' financial contributions. Whether you're establishing a new child support order or modifying an existing one, the process can be complex. Courts require full disclosure of financial information from both parents to ensure a fair calculation. Additionally, life changes—like job loss, relocation, or changes in custody—may necessitate a modification to the existing support order.
At TCB Family Law Group, we ensure that your child support agreement is fair and in line with California’s guidelines, while also addressing any unique circumstances your family may have.
What is Child Support?
Child support is a monthly obligation that a parent pays to the other to help cover the expenses of raising their child. In California, both parents, regardless of gender, are equally responsible for supporting their children. The state’s goal is for children to share a similar standard of living in both parents’ homes.
How Long Does Child Support Last?
Usually until the child turns 18 or, if they are still in high school, until graduation or age 19, whichever is earlier.
If the child has special needs and can’t support themselves, child support may continue into adulthood.
How is Child Support Calculated?
California uses a standard formula to calculate child support. Given the complexity of the formula, family law judges, attorneys and the parties frequently rely on computer software to assist in the calculations (e.g., “X-Spouse” and “DissoMaster”).
This guideline formula takes into account several factors, including each parent’s net disposable income, the amount of time the child spends with each parent (timeshare), tax filing status, and any additional costs such as healthcare, daycare, or special needs. The goal is to ensure that children receive consistent financial support regardless of the family's circumstances. Courts typically stick to this guideline unless there are significant reasons to deviate, such as extraordinary needs or circumstances affecting the child.
Main Factors in Calculating Child Support:
Income. Generally, the child support obligation will be higher if there is a big difference in the parents’ incomes. For example, if Parent A earns $250,000 per year and Parent B earns minimum wage, Parent A can expect to pay more child support, assuming they have equal time with the children. If the parents have relatively equal incomes, child support will be less.
Time Spent with Children. Similarly, if one parent spends more time with the children, they are likely to receive more support (depending on their respective incomes). If Parent A has an 80% timeshare and Parent B has a 20% timeshare, Parent B will likely pay more support than if they shared time equally. The general theory is that a parent who has more time with the children will have a greater need for child support, as that parent incurs more costs in housing, feeding, clothing, and otherwise supporting the children.
Other Factors That Affect Child Support
Tax filing status and exemptions: Taxes impact how much money is available for support.
Type of income: Whether income is from a regular job or self-employment.
Retirement contributions: Voluntary retirement savings can affect the amount.
New spouse’s income: While a new spouse's income isn’t used for support, it may change the tax bracket, affecting the support amount.
Health insurance premiums, deductions, mandatory retirement, union dues, and other factors: All impact the final amount of support.
What if One Parent Has Fluctuating Income?
Oftentimes, people have fluctuating incomes which add to the complexity of calculating support. If a parent’s income is unpredictable (due to overtime, bonuses, commissions, or equity income), the court may order "additional support" (oftentimes referred to as Smith-Ostler or Ostler-Smith support). This is based on a percentage of any extra income the parent earns beyond their regular salary. The software used to calculate child support assists in these calculations to ensure the child benefits from any increase in income without constantly needing to adjust the support order.
Equity Income: Employee stock units and options are part of the employee's overall compensation package and must be included in the formula child support calculation. The point at which stock options become “income” depends somewhat on the nature of the options (e.g., whether vested or a mere expectancy) and on their treatment under applicable tax law. Generally, stock options and restricted stock units are both considered income available for support when the employee spouse can exercise the units/options without any legal restrictions.
Imputed Income: When a Parent Isn’t Working at Full Potential
If a parent isn’t earning what they could, the court may calculate support based on what the parent should be earning (called "imputed income").
A judge cannot impute income to a person without making specific findings that he or she has the “ability” and “opportunity” to earn that income, which is not always a straightforward task. “Ability” means that the person has the skills, training, work experience, and education to earn a certain amount. Generally, the average person can earn at least minimum wage. “Opportunity” tends to be the more difficult prong of the test as it means that a person has the present opportunity to obtain a certain job making a certain income. The court cannot pick the amount of imputed income “from thin air.” Rather, there must be evidentiary support for the imputed income amount.
If a party is not earning at capacity, it is common to use a vocational expert to perform an examination and provide a report regarding the party’s skill set, available opportunities, and potential salary range. Where there are limitations for the party (e.g. outdated skills, problems obtaining employment), the vocational expert will provide suggestions, contacts, and timelines for education, training, networking, etc. to ensure the party has a path toward employability.
Alternatively, the judge can order a parent to look for work (“seek-work orders”). Such an orders typically requires a parent to apply for a certain number of jobs each week and to provide a log verifying their efforts to the other parent on a regular basis. Failure to comply can result in a judge imputing income.
Child Support Add-On Expenses
In addition to basic child support, parents may be required to share “add-on expenses” for the children. These can be either mandatory or discretionary.
Mandatory Add-Ons
Child care costs related to employment or reasonably necessary education or training for employment.
Reasonable uninsured health care costs for the children.
These expenses are apportioned between the parents based on their net incomes with some exceptions.
Discretionary Add-Ons (decided by agreement or court order)
Costs related to the educational or other special needs of the children.
Extracurricular activities.
Travel expenses related to visitation.
To ensure reimbursement, it is important to keep records and receipts to make timely requests.