How Is Child Support Calculated?

Many factors are considered when calculating the amount of child support during the divorce process. Every state has its own guidelines and algorithms to determine a base amount, and the Court may provide for additional expenses not automatically included. To give a general idea of how child support is calculated, we will look at guidelines from two sample states – California and Illinois.

California

In 1992, the California legislature adopted an algebraic formula to calculate child support. Because of the complexity of the formula, most judges and family law attorneys use computer programs based on the California Child Support Guidelines to do the calculations. The calculator programs provide only an estimated amount; the Court Commissioner or Family Law Judge has the authority to consider additional factors that may affect the final amount of support ordered.

The guidelines are based both on each parent’s gross monthly income, and the amount of time the child is cared for by each parent. Income from all sources is considered, even if it is not reported or taxed under federal and state law. Examples of income sources are:

• Wages from a job
• Tips
• Commissions
• Bonuses
• Self-employment earnings
• Unemployment benefits
• Disability and workers’ compensation benefits
• Interest
• Dividends
• Rental income
• Social Security or pensions
• Any payments or credits due or becoming due, such as lottery and prize winnings

The income is calculated by subtracting certain items from each parent’s income, including:

• Mandatory union dues
• Mandatory retirement contributions
• Health premiums
• Child or spousal support actually being paid
• Costs of raising children from another relationship

Additional factors that may affect the final amount of support are:

• health care insurance costs for the child
• medical costs which are not covered by insurance
• child care costs that are employment related or reasonably necessary for the education or training for employment skills of a party
• visitation travel expenses
• any special educational needs

Illinois

Unlike California, Illinois currently bases the amount of child support on the non-custodial parent’s net income and the number of children for which he or she is responsible. There is a guideline for the minimum percentage of that net income, such as 20% for one child up to 50% for six or more children. However the financial resources and needs of both the child(ren) and the parents may be taken into account if the guideline amount is deemed inappropriate after considering the best interest of the child(ren). The income sources and deductions rules are similar to California’s.

However, state officials have proposed a big change to the way Illinois calculates child support. If this change is adopted this year, it likely would not take effect for two or three years. If that happens, Illinois would abandon its “percentage of income” formula which dates from the 1980s and join the majority of other states to use an “income shares” formula, which approximates how much it would cost for the parents to jointly raise a child, and then ensures that the child is supported by that amount. Proponents claim that the old model doesn’t take into account the realities of many modern families (such as shared custody), and adopting the new system would be more fair and workable for most families.

In conclusion

While California and Illinois provide a comparison of how child support is calculated in different states, the child support guidelines and calculations can differ widely from state to state, so it is important to consult a family law professional to make sure you understand how it works in your area. It is also very important to understand that if you agree on an amount of child support, most states will honor your agreement no matter what guideline is.  You can contact a Divorce With Dignity affiliate (findaprovider.dwdignity.com) near you to learn more about child custody and other issues affecting your divorce agreement. Let us help you through the difficult divorce process – with dignity!