The Custodial Parent’s Income Does Has a Smaller Impact on Child Support Payments
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|
Custodial Parent |
Other Parent |
Combined |
|
1. Gross Monthly Income |
1000 |
2000 |
3000 |
|
2. % of Total Income (Each parent's income divided by combined income) |
33.33% |
67.67% |
|
|
3. Number of Children |
|
|
1 |
|
4. Basic Support |
|
|
486 |
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5. Health and Dental Insurance |
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|
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6. Work Related Child Care |
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|
|
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7. Additional Expenses |
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|
|
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8. Total Support (add lines 5, 6 and 7 for each parent and for combined column. |
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|
486 |
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9. Each Parents Obligation (Combined column Line 8 x each parent’s line 2) |
161.98 |
324.02 |
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10. Enter Amount for each parent from line 8. |
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11. Each Parent’s net obligation (subtract Line 10 from Line 9 for each parent) |
161.98 |
324.02 |
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“other parent” pays custodial parent $324.02 per month.
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|
Custodial Parent |
Other Parent |
Combined |
|
1. Gross Monthly Income |
1100 |
2000 |
3100 |
|
2. % of Total Income (Each parent's income divided by combined income) |
35.48% |
64.52% |
|
|
3. Number of Children |
|
|
1 |
|
4. Basic Support |
|
|
494 |
|
5. Health and Dental Insurance |
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|
|
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6. Work Related Child Care |
|
|
|
|
7. Additional Expenses |
|
|
|
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8. Total Support (add lines 5, 6 and 7 for each parent and for combined column. |
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|
494 |
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9. Each Parents Obligation (Combined column Line 8 x each parent’s line 2) |
175.27 |
318.73 |
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10. Enter Amount for each parent from line 8. |
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|
|
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11. Each Parent’s net obligation (subtract Line 10 from Line 9 for each parent) |
175.27 |
318.73 |
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“other parent’s” obligation is $318.73 per month.
When the Custodial Parent increases their income by $100, the child support obligation decreases by $5.29. Notice in this example that the Basic Support has increased (line 4), and the “other parent’s” percentage of the total income has decreased. These two factors largely offset one another, meaning income changes for the custodial parent do not have as great an impact on the child support paid by the “other parent.”
We also need to examine what happens when the “other parent” increases their income by $100 from the original situation.
Example Three
|
|
Custodial Parent |
Other Parent |
Combined |
|
1. Gross Monthly Income |
1000 |
2100 |
3100 |
|
2. % of Total Income (Each parent's income divided by combined income) |
32.26% |
67.74% |
|
|
3. Number of Children |
|
|
1 |
|
4. Basic Support |
|
|
494 |
|
5. Health and Dental Insurance |
|
|
|
|
6. Work Related Child Care |
|
|
|
|
7. Additional Expenses |
|
|
|
|
8. Total Support (add lines 5, 6 and 7 for each parent and for combined column. |
|
|
494 |
|
9. Each Parents Obligation (Combined column Line 8 x each parent’s line 2) |
159.36 |
334.64 |
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10. Enter Amount for each parent from line 8. |
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|
|
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11. Each Parent’s net obligation (subtract Line 10 from Line 9 for each parent) |
159.36 |
334.64 |
|
The monthly support obligation is $334.64. When we compare
this with the original child support, the obligation has increased from $324.02
to $334.64, a $10.62 change, which is a far greater impact than the change when
the custodial parent’s income changed by the same amount (impact $5.29).
The “other parent” now has a lower percentage of the total
income, so their obligation is reduced, but not by the same amount. The designers of this child support system
would tell you the net benefit to the child is the same in these last two
examples.
At this income level, the marginal child support rate is exactly 8%. Base Support in Example One is $484, when we increase the total income by $100, to $3,100, the base support becomes $494. Of the extra $100 in either example 2 or 3, there should be $8 more spent on the child. Notice also that the child support rate at these levels is 11% ($334/$3,100).
So why does child support change by $10.62 in example 3? In that example, not only should the “other parent” be paying $8 more, but also their percentage of the total income increases, which again raises the amount of their obligation. Oddly, the $10.62 increase is greater than the marginal child support rate of 8%.