Monday, April 7th 2008
Child Support in California
In California, both parents have a general obligation to support their minor children “in the manner suitable to the child’s circumstances.” The California legislature has determined that “a parent’s first and principal obligation is to support his or her minor children according to the parent’s circumstances and station in life.” Further, “both parents are responsible for the support of their children.”
In practical terms, one parent is usually ordered to pay child support to the other parent. Courts will usually impose child support obligations against one parent based upon a calculation of what is called “Guideline Child Support.” Although called a guideline, the amount calculated for child support according to the guideline is presumptively correct, and Courts will deviate from the guideline support number only in rare circumstances.
Child support is generally based upon gross income, which is defined broadly in the Family Code as “income from whatever source derived.” That means that gross income usually includes wages, including predictable overtime payments, business income, royalties, bonuses, and commissions, rents, dividends and interest from investments, pensions and annuity payments, workers compensation payments, unemployment payments, and spousal support received from other relationships.
Courts can also in their discretion consider earning capacity in lieu of gross income, if consistent with the best interest of the children. Earning capacity is generally considered in situations of unemployment or underemployment. In the typical situation, the parent receiving child support claims that the parent paying child support is not earning enough money based on the paying parent’s ability or opportunity to work, and the parent receiving child support asks the court to impute income to the paying parent. Courts generally require evidence of the paying parent’s earning capacity, and the imputed income amount cannot be merely be drawn out of the air or created by the receiving parent.
Certain money received does not apply towards gross income for the calculation of child support. Generally, child support from a parent is not considered income to the receiving parent for purposes of calculating child support. Public assistance received (such as AFDC, SSI, or TANF) also is not included in gross income for purposes of calculating child support. Gifts or inheritance also are not included in gross income for the purposes of calculating child support. Appreciation in a residence or other similar “paper” or unrealized profits are not included in gross income for purposes of calculating child support. Finally, the paying parent’s new mate income is not included in gross income for the purposes of calculating child support.
Certain deductions from gross income are allowed in the child support calculation. Unlike income, however, these deductions are very narrowly construed. Certain deductions may have a tax affect, and parents are able to agree to amounts of child support based on who may receive the tax benefit.
There are also certain add-ons to the child support guideline calculation. These include health care costs and child care costs, and may include expenses associated with special needs and visitation travel expenses.
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