Understanding Child Support
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Understanding Child Support
Child support is a court-ordered, periodic payment following the end of a marriage or other relationship by a parent, for the financial benefit of his or her minor child(ren), or until graduation from high school (or sometimes college), whichever is later. It is most often paid to the parent with custody of the child, but can also go to some other guardian or caregiver to the child, or to the state if the child is receiving state aid. Child support laws simply give effect to the financial obligation of both parents in raising a child.
Things To Know
- The amount of child support is based on detailed, standard guidelines set out by law.
- Child support is expected by the court to be used for the child’s expenses.
How much is paid?
The amount of child support is based on detailed, standard guidelines set out by law. In some places, the court has authority to depart from the guidelines to achieve a more fair result in a given situation. The guidelines vary widely by state, but 20 percent to 40 percent of income is a reasonable ballpark figure, depending most heavily on the paying parent’s income and the number of children he or she has to support.
The custodial parent’s income, any special needs of the child, or other special circumstances can also be taken into account. A change in the paying parent’s situation can trigger a review by the court and possible modification. Generally, a "material and substantial change" is required for modification. Many states have online calculators that will help you estimate how much child support you can expect to pay or receive.
What if the parents can’t agree?
If the parents cannot make an amicable arrangement, the payments will be made through the court. The paying parent’s wages can be garnished and tax refunds can be intercepted, if necessary. Finally, a parent who simply refuses to pay court-ordered support can even be jailed for contempt of court. Note that if you give the child or the child’s other parent something directly, you will still owe the full amount of court-ordered child support. The court will likely consider what you give to the other parent to be a gift to the child. Understanding this fact will help avoid a frequent point of contention.
How is it to be used?
Child support is expected by the court to be used for the child’s expenses, including food, shelter, clothing and educational needs. It is often unavoidable, however, that child support money is used in a manner that benefits the custodial parent as well. For example, it is permissible to use child support payments for rent or utilities.
Child support is not taxable to the person who receives it and not tax deductible to the person who pays it. The law assumes that if the parents lived together, after-tax dollars would be used to provide for the child, and this principle does not change merely because the parents are in different households.