How much Child Support to Pay?

How is the Amount of Child Support Determined?
Federal law now requires that the amount of a child support payment be set in accordance with a guideline. Having a guideline is believed to prevent widely different amounts of child support being ordered from courtroom to courtroom. Guidelines provide an objective basis for the determination of the amount of support to be paid. As a result, most states have established formulas that are used to determine the amount of the payment from one parent to the other.

What Other Items Do Formulas Consider?
Time Spent With Child. Besides the respective net incomes of the parents, the amount of time each parent spends with the child is factored into the formula. Since a parent who spends more time with the child is most likely incurring greater expense in raising the child, the 'custodial parent' (a term that is often used in association with the parent who has the physical custody and responsibility the majority of the time) is considered to spend more money on the child than the 'non-custodial parent' (the parent without primary physical custody). Since the custodial parent spends more of his/her income on the child, the child support formula includes this factor in determining the amount of child support to be paid by one parent to the other"


Number of Children. Along with the amount of time that a parent spends with a child, the number of children in common between the parents is often considered. The theory is that certain fixed expenses do not rise with the number of children for whom support must be provided, so the actual amount of support per child is lower given the greater number of children in common.
Special Circumstances. In addition, special circumstances may require a greater amount of child support to be paid. Special circumstances, such as extraordinary medical expenses, special educational needs, travel expenses incurred for child visitation, uninsured catastrophic losses and the cost of basic living expenses for children from another relationship, can affect the amount of guideline child support that is to be paid.

Since there are a number of factors that go into the formula to determine guideline child support, some states have approved computer programs designed specifically for determining the amount of child support. Use of a computer program to determine the amount of child support is a very objective method for determining child support.

Child Support and Welfare

Since enactment in 1996 of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), a major impetus to collection of child support in the United States is the Welfare law. A Custodial Parent receiving public assistance (Temporary Aid to Needy Families or TANF) is required to assign his or her right to child support to the Department of Welfare before cash assistance is received. Another requirement is that the custodial parent must pursue child support from the non-custodial parent . Where successful, the child support is then diverted to the welfare program instead of the custodial parent as partial reimbursement of the cash assistance being paid. If the amount of child support paid equals or exceeds the assistance grant, the family is moved off the cash assistance portion of the program (they may still be eligible for food stamps and medical assistance). Other provisions of PRWORA require the custodial parent to find employment and will assist that parent in finding and maintaining such employment (such as buying new work clothes or repairing a vehicle to get them to work). If the custodial parent becomes employed, their cash assistance will be reduced based on the amount of income received. If child support is also being paid, the chances are that it will then be greater than the assistance grant and the family will move off the welfare rolls (at least as far as cash assistance is concerned) . The child support enforcement programs in all 50 states are primarily funded by the federal government through each state’s Department of Welfare. Should a state's handling of child-support enforcement not comply with PRWORA standards, that state's program funding can be reduced by 5% as a penalty."

Despite the claims of some that PRWORA and it's welfare connection are generating government income through child support collections, the US Department of Health and Human Services reports that in fiscal year 2003, 90% of child support collections went directly to families. In fact, the percent of payments going to families was 86% or more in 47 states and in seven states exceeded 95%. Only the remaining 5-14% reimburses taxpayers for the cost of welfare expenses.

Nevertheless, half of current unpaid child support debt is owed to the government and not to families. Sherri Z. Heller, Ed.D, Commissioner of U.S. Office of Child Support Enforcement stated, "We need to be more aggressive about leveraging older debt owed to the government as an incentive to obtain more reliable payments of current support to families." Towards this end, the United States federal government, through the Social Security Administration, provides up to $4.1 billion in financial incentives to states that create support and arrearage orders, and then collect (cf. 6B, 6C, & 6D).