Factors
in Modifying Child Support
by
James P. Reape
Many people are under
the mistaken impression that child support is a fixed amount when,
in fact, the rate one pays - or is paid - can change drastically
over a child's eligibly lifetime. Child support is one of the most
modifiable terms of any divorce and may require a review as often
as once a year or more if there is a change in circumstance.
Besides inflation based
changes some of the other factors that affect the child support
amount are changes in employment, income and time-share of the children.
Change in employment
can include anything from either party gaining a raise to losing
a job or taking a lower paying position. Any change in employment
that increases the disparity between the two parents can be considered
when reexamining the child support number. This is an important
fact for someone who is paying support to consider, especially if
his or her income drops dramatically.
If the individual is
unable to pay the amount awarded by the court and they fail to adjust
support downward the result can lead the debt to go into arrears.
Arrears are debts that are never forgiven - even a bankruptcy cannot
erase this serious debt from a person's record. Once you are in
arrears, you can loose any licenses that the state issues unless
the debt is paid. Licenses that can be revoked include the license
to practice medicine, to practice law, contractor's licenses and
even a person's drivers license. In addition, Arrears are subject
to a hefty 10% per year interest penalty.
The federal government
is now compiling data of all support orders so there may be even
more far reaching implications for those individuals in default
in the future.
For the person receiving
support, changes can include more income, which will adjust support
down, or even the possibility of imputing income. Imputing income
means that the person has the ability to earn money but is not using
the opportunity. For example, a person who finally finished law
school but refuses to get a job. In this case, the court can assign
that person a dollar amount that if feels the person could reasonably
earn and child support would be recalculated based on that number.
Keep in mind, however, that the evaluation is based on both sides
so if the payee is now earning more money, the award could remain
the same.
Another factor to consider
when reviewing the child support award is the amount of time each
parent spends with the child(ren). California guideline relies in
part on the division of the care. For example, if Dad is paying
child support and he starts taking on more responsibility for the
daily care of the children, his support payment may be adjusted
down. On the other hand, if he moves away and cannot take care of
the children as often as he once did, his support payment may go
up.
A final consideration
for parents both receiving and paying support is the fact that under
current guidelines, the support calculated fro two children is not
two times the support awarded for one and support for three children
is not three times the amount for one, etc. This means that when
one or more children is involved and the oldest child reaches majority
(usually when he/she turns 18) the child support does not necessarily
go down in proportion to the number of children. In other words,
a person receiving child support for two children will not automatically
have their payments cut in half when the oldest becomes an adult.
The formula is based on the youngest child being a larger percentage
of the child support award.
The bottom line is
that it is important to get a periodic check-up of any child support
award. Keeping yourself informed and aware of how changes in circumstance
can help you avoid costly mistakes.
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