When the parents of a child or children are no longer together, the parents are legally required to support the child’s welfare. However, the court often orders that the noncustodial parent must pay the custodial parent a sum called child support. Essentially, this amount should be sufficient to pay for the child’s or children’s basic living expenses, such as shelter, clothing, food, education, and so on. Child support is a legal responsibility to support one’s biological children and not stepchildren, provided the individual did not formally adopt the child. Overall, the principle of paying child support may seem simple, but when it comes to calculating how much parents pay, then things should get a tad bit complicated. This article answers some of the questions regarding child support.
Guidelines on How Child Support is Determined
Noncustodial parents are mandated to pay child support, but does child support count as income to the custodial parent? According to the Internal Revenue Service, child support is classified as a personal expense and not an income. As such, child support is untaxed and not eligible for tax returns.
According to 45 C.F.R. § 302.56 of the federal law, how much child support a parent will pay is determined by the state. As it is, the guidelines vary from one state to another. For example, Maryland makes use of the Income Sheet Model to calculate how much child support a parent should pay.
The formula used by a state to calculate child support is based on factors such as the parent’s income, other dependents, nights the child stays with each parent, and healthcare, amongst other things. While both parents are obligated to support the welfare of the child, the judge generally has the freedom to order child support to favour the child. Generally, the judge may order for a higher or lower amount depending on the case.
Understanding Cost of Living Adjustment (COLA) Clause
When determining the amount a noncustodial parent pays in child support, the court often imposes a COLA clause. A COLA clause is an order where the payment automatically increases according to a schedule. The essence of the COLA clause is to augment the child support amount such that it increases with respect to the cost of living.
The court often takes into consideration economic indicators such as the Consumer Price Index when arriving at a COLA clause. Also, the COLA clause helps to eliminate the need for any modification request, especially one that spurs solely on the cost of living increase. Some states mandate child support, including COLA clauses.
Parents’ Child Support Agreement
One of the crucial situations where getting legal services is important is when it comes to family law, such as a child support agreement. But if parents can come up with a reasonable child support agreement, the state will most likely approve the agreement.
Whatever the case may be, the judge will give priority to the child’s best interests and ensure that the child or children are not shortchanged. So, even if parents decide on a zero child support agreement, rarely will any judge approve such a request, except for a very good reason, such as if a noncustodial parent is completely unable to work due to a medical condition.
