Child Support 103: Support Amounts, Imputation Of Income, Taxes & More
Not all child support cases are straightforward. There are a number of different disputes that can arise in the process, making it difficult to reach a quick conclusion. Some of the most common and contentious issues found in these cases include:
Calculation of Support Amounts
The most common disputes in child support cases are over how the support amount is calculated. Both parent’s incomes are the main basis for these calculations. However, disagreements over how a parent’s income is calculated and reported can be raised. Manipulating income sources like bonuses and commissions can lead one parent to accuse the other of trying to illegally influence the total child support amount.
Disagreements over deductions are also common. This could include deductions for health insurance, childcare, or any qualifying medical costs. The most significant piece of evidence that can be used in these scenarios is accurate and transparent financial disclosures. Both attorneys and the court will review these documents to better understand each party’s income and resolve the dispute.
Enforcement of Support Payments
When someone refuses to pay child support or is inconsistent in how often they send the funds, it can be a major source of conflict. The impact this negligence can cause is severe, potentially putting the other parent in a position where they cannot afford basic necessities for the child.
In these instances, the court can intervene to enforce the payments through different legal means. The most common enforcement measures include garnishing the funds from paychecks, taking liens on property, or even punishing the individual with incarceration. The parent being challenged for their non-compliance can challenge these allegations with proof of unemployment or evidence that they have been fulfilling their child support obligations.
Imputation of Income
Some child support cases involve one parent who is either unemployed or underemployed. In these cases, the court is able to impute income based on how much they believe the individual could be making. To make this calculation, the court will examine the individual’s skills and education to see what job opportunities exist.
Disputes can arise if the individual being examined feels like the assigned child support amount is either unfair or unrealistic. To combat the originally assigned amount, the individual will need to present detailed evidence of the current job market conditions and where they believe their qualifications were miscalculated.
Retroactive Support
The concept of “retroactive support” refers to payments that cover the period before an official child support order was established. This is often enforced when a parent has delayed to file for child support on purpose. Retroactive support requests can be challenged by the other parent, who may claim that they were unaware of the need to make these payments or that they were providing another form of “informal support” during that time.
Either parent might also disagree on what expenses are included within a retroactive support agreement. Costs for medical care, childcare, and education are three common expenses included. To help resolve these disputes, both parents should keep detailed records of all their expenses during this retroactive period to ensure every dollar is accounted for.
What Are the Implications of Combined Income on Child Support?
Combined income refers to the total income generated between both parents. This is a figure often used to calculate the amount of a child support obligation. By better understanding the implications of combined income, both parents can help ensure the support amount is fair and adequate for the needs of their children.
Some of the most significant implications include:
Determining Support Obligations
The largest implication of combined income is its use to determine the child support obligation. It’s used as a baseline for how much support the child should receive. This method aims to help ensure that the child benefits from the same proportion of parental income that they would receive if both parents were still together.
Taking the total income into consideration can help the court better allocate an amount that reflects the combined financial capabilities of both parents. The court will also examine the discrepancy between both salaries to determine which parent will be ordered to make the payments to the lower-earning spouse.
Adjustments for Significant Income Changes
An original child support order will need to be modified when a significant change occurs in either parent’s income. Because a significant increase or decrease in one spouse’s income will alter their combined income, the support amount will likely need to be changed. This is to ensure that a child support arrangement is always fair and never puts either spouse in a financially vulnerable position.
Impact of Tax Implications
Combined income considerations also have tax implications for both parents. For example, child support payments are not tax-deductible for both the paying and receiving parent. However, each parent’s financial status can impact other tax benefits and obligations, like dependent exemptions and eligibility for tax credits. Work with your child support attorney to better understand these implications and help plan your finances more effectively.
Do You Need a Lawyer for Child Support In NY?
While you are not legally required to hire an attorney for child support in NY, having one can provide peace of mind and significant advantages to your case. Some of the most valuable reasons to consider retaining a family or divorce lawyer that specializes in child support include:
Better Understanding Legal Requirements
Without formal legal training, it can be difficult to understand the child support laws in New York. Hiring a child support attorney can help to fill in this knowledge gap. They will be able to explain all of the legal requirements and procedures involved in your case to ensure you are always informed of your personal rights and obligations. Having this legal resource can help you avoid common mistakes that could delay or impact the outcome of your case.
Accurate Calculation of Support
Factors such as income, custody arrangements, and a child’s needs are all used to determine what child support amount would be the most appropriate after a divorce. An attorney can help calculate this figure using New York’s child support guidelines to ensure the outcome is fair and compliant with the law. Having this legal support can help to resolve any disputes that could delay the case.
Negotiating Agreements
When animosity exists between both spouses who need to secure an official child support arrangement, negotiating can become contentious. A lawyer can act as a neutral third party to step in and facilitate these negotiations. Having someone with direct negotiation experience in child support cases can maximize the chances of avoiding unnecessary conflicts and reaching a smooth resolution.
Do You Have to Pay Child Support If You Have 50/50 Custody in NY?
If you have a 50/50 custodial arrangement in New York, it does not automatically exempt either parent from having to pay child support. This is because child support is determined based on the financial need of the lower-earning spouse, not just how much time is being spent with each parent post-divorce.
To calculate an accurate amount, the court will use the Child Support Standards Act (CSSA). They’ll take into consideration how much money both parents make and then allocate a percentage of that income to support the child’s basic necessities. Even in 50/50 arrangements, the parent who makes the most money annually will likely be required to pay child support to the lower earner. This is to ensure a child’s standard of living is consistent between both parents.
When it comes to child support cases in New York, another consideration is that the courts have the discretion to consider other factors when making their final calculation. This would apply when there are extra expenses related to a child’s education, healthcare, or any other type of extracurricular activities. This means that even when custody is split between both parents with similar incomes, the court still may issue payments if they deem it necessary for the child.