The State of California has a child support guideline that is unique among states. The California child support guideline includes the following principles:

 

• Parents are mutually responsible for the financial well-being of their children.
• A child’s standard of living should not drastically change between each household.
• Child support may appropriately improve the standard of living of the custodial household to improve the lives of the children.
• Each parent should pay for the support of the children according to the parent’s ability.
• It is presumed that a parent having primary physical responsibility for the children will contribute a significant portion of available financial resources for the support of the children.

The amount of child support owed is based on a complex algebraic formula set out in California Family Code 4053 – 4055. The formula accounts for the income of each parent from multiple sources, the amount of time the child spends with each parent, tax deductions for each parent, mandatory pension contributions, union dues and health insurance payments.

The formula is almost always calculated by one of several computer programs which determines the “net” income of each party available to pay child support, considers the parental timeshare and then determines the amount of child support owed usually by the higher earning parent.
Child care and health care costs not covered by insurance are usually paid equally between the parties, as a mandatory “add-on” to child support. Other discretionary add ons include for special educational expenses and travel for visitation.

There are very limited situations in which the court is permitted to deviate from the guideline formula in its award, including situations with a “high-net income” parent, and situations where the parties agree to certain below (or above) guideline awards. However, in all deviating circumstances, the court is required to first calculate the guideline amount, and then justify the deviation. (Family Code 4056, 4057)

Because the guideline is based on a determination of the “net” after-tax income of each parent – an approach unique among states – applying the guideline fairly and correctly creates a level of complexity in the calculation.

At Kleeman Kremen, we have litigated the appropriate child support amount in situations where the guideline is applied, and those where deviations from the guideline award are warranted.

Many individuals have variable income streams – whether due to “base and bonus” compensation structures, equity compensation that vests over time, earnings based on their creative efforts – payments by episode, script, re-write, future profit participation, residuals and royalties – and other seasonal adjustments. Some businesses have cash flow that is seasonal, and owners are compensated in varying amounts, depending on seasonal cash flow. California takes into consideration these “fluctuating” income streams in setting support, and formulas for “time-based” payments can be devised to address them.

Life changes, and often child support modifications are needed. In order to petition the court for a child support modification, a parent must prove that there has been a change in circumstance since the last official order unless the parties had previously stipulated to a below-guideline award.

A change in circumstance can include the following:

• Income of either parent has increased or decreased
• One parent has lost employment
• One parent has another child (from a different relationship)
• Time spent with one parent increases/decreases
• Change in the child’s needs
• Changes to any of the other factors in the child support formula (taxability of income sources and tax deductions, mandatory pension contributions, union dues, health insurance payments, etc)

If parents can agree to the child support modification, a stipulation can be drafted and submitted to the judge for approval. If an agreement cannot be reached, one of the parents must file a motion with the court.

Even if you and your spouse have verbally agreed to a change in child-support, it is vital that you get the agreement in writing and then signed not only by both parties but also the judge. If not, there can be disputes over what amount is payable, over child support arrears, and court actions for assignment of unpaid support against the income of the non paying parent. Even contempt actions can be brought, seeking to punish a non-paying parent for a violation of court orders.