1Child Support GuidelinesChild Support GuidelinesHistoryHistory In 1984, Congress heard testimony that the In 1984, Congress heard testimony that the biggest problem facing kids was poverty, and biggest problem facing kids was poverty, and that the biggest cause of child poverty is single that the biggest cause of child poverty is single parenthood.parenthood. Therefore, congress passed the Child Support Therefore, congress passed the Child Support Enforcement Amendment of 1984 to promote Enforcement Amendment of 1984 to promote consistency and higher child support awards.consistency and higher child support awards. The Family Support Act of 1988 required each The Family Support Act of 1988 required each state to develop presumptive (rebuttable state to develop presumptive (rebuttable presumption), rather than advisory, child presumption), rather than advisory, child support guidelinessupport guidelines To control welfare costs and to assure that To control welfare costs and to assure that parents did not shift the cost of raising children parents did not shift the cost of raising children to the society at largeto the society at largeMinimum RequirementMinimum Requirement Look at all earnings and income of the nonLook at all earnings and income of the non--resident parentresident parent Be based on specific descriptive and numeric Be based on specific descriptive and numeric criteria to compute the support obligationcriteria to compute the support obligation Provide for the children’s health care needs, Provide for the children’s health care needs, through health insurance coverage or other through health insurance coverage or other meansmeansPrinciples Underlying Guideline Principles Underlying Guideline FormationFormation Both parents should share legal responsibility for Both parents should share legal responsibility for support of their children, with the economic support of their children, with the economic responsibility divided between the parents in responsibility divided between the parents in proportion to their income.proportion to their income. The subsistence needs of each parent should be taken The subsistence needs of each parent should be taken into consideration in setting child support, but in into consideration in setting child support, but in virtually no event should the child support obligation virtually no event should the child support obligation be set at zero.be set at zero. Child support must cover a child’s basic needs as a Child support must cover a child’s basic needs as a first priority, but, to the extent either parent enjoys a first priority, but, to the extent either parent enjoys a higher than subsistencehigher than subsistence--level standard of living, the level standard of living, the child is entitled to a share of the benefit of that child is entitled to a share of the benefit of that improved standard.improved standard. Each child of a given parent has an equal right to Each child of a given parent has an equal right to share that parent’s income, subject to factors such as share that parent’s income, subject to factors such as age of the child, income of the parent, income of the age of the child, income of the parent, income of the current spouse, and the presence of other dependents.current spouse, and the presence of other dependents. Each child is entitled to determination of support Each child is entitled to determination of support without respect to the marital status of the parents at without respect to the marital status of the parents at the time of the child’s birth. Consequently, the the time of the child’s birth. Consequently, the guidelines should be used equally in cases of guidelines should be used equally in cases of paternity, separation, and divorce.paternity, separation, and divorce. Application of the guidelines should be sexually Application of the guidelines should be sexually nondiscriminatory.nondiscriminatory.2 A guideline should not create extraneous negative A guideline should not create extraneous negative effects on the major life decisions of each parent. In effects on the major life decisions of each parent. In particular, that guideline should avoid creating particular, that guideline should avoid creating economic disincentives for remarriage or labor force economic disincentives for remarriage or labor force participation.participation. A guideline should encourage A guideline should encourage the the involvement of involvement of both parents in the child’s upbringing. A guideline both parents in the child’s upbringing. A guideline should take into consideration the financial support should take into consideration the financial support provided by parents in shared physical custody and provided by parents in shared physical custody and extended visitation arrangements. extended visitation arrangements. Income Income shares model (used by 33 shares model (used by 33 states, including Utah)states, including Utah) The income shares model: seeks to allocate to the The income shares model: seeks to allocate to the child the proportion of parental income estimated to child the proportion of parental income estimated to have been spent on the child if the household were have been spent on the child if the household were intactintactExample two childrenExample two children MotherMother FatherFather CombinedCombined1. Gross monthly income1. Gross monthly income $2,000$2,000 $3,000$3,000 = $5,000= $5,0002. % of Combined income2. % of Combined income 40%40% 60%60% =100%=100%3. Expenditure on children in 3. Expenditure on children in intact familiesintact families$1,010$1,0104. Each parent’s share (Line 4. Each parent’s share (Line 2 x Line 3)2 x Line 3)$404$404 $606$606 =$1,010=$1,010Percentage of income modelPercentage of income model(Used by 13 (Used by 13 states states )) Determines child support based on a percentage of the Determines child support based on a percentage of the obligor’s income and number of children (custodial parent’s obligor’s income and number of children (custodial parent’s income not considered).income not considered). The percentage can be based on either gross or net incomeThe percentage can be based on either gross or net income Perhaps the most wellPerhaps the most well--known is the Wisconsin support based known is the Wisconsin support