New Year, New Child Support Guidelines

On January 1, 2011, two pieces of legislation will go into effect modifying some aspects of the child support guidelines.

Allowable daycare expenses

 

The child support guidelines allow for a credit to a parent who pays daycare expenses that are “work-related”. Currently, allowable daycare expenses are capped at up to no more than an annual total of $5,000 for one child, $9,000 for 2 children, and $12,000 for 3 or more children. For one child, the cap translates to about $416 per month. HB 1993 expands the definition of “work-related” to include daycare required for a parent’s education and training. In addition, the new law will remove the cap on allowable expenses, allowing a parent to claim all work-related daycare in the guidelines calculations.

 

Self-support reserve

 

Child support orders require that the obligor be left with a self-support reserve, i.e. a sum of money that the obligor will have to support him or her before paying out child support. Currently, the self-support reserve is $903 per month. On January 1, 2010, HB 1216 increases the self-support reserve to $1,038 per month.

Shared parenting? No child support? Not so fast...

In New Hampshire, more and more parents share joint residential responsibility for children, sharing equally in the parenting time. Many people may assume that if parents share equally in the time with the children, then they will have equal expenses and therefore neither party would pay child support to the other. However, the general philosophy of the court system says not so fast. The law holds that equal parenting time in and of itself will not negate the obligation for child support. If two parents earn substantially different incomes, then the parent with the higher income is often ordered to pay child support to the other parent.

For example, John and Jane are divorcing. They have two children, and will share time with the children in a week on/week off schedule. John is a mechanic who earns $50,000 per year. Jane is a teacher’s aide, and earns $25,000 per year. The New Hampshire Child Support Guidelines, if John were the obligor (person paying the child support) would require child support in the amount of $1,051 per month. If Jane were the obligor, the guidelines would require her to pay $571 in child support per month. Often, a court will look at the difference between those to figures, in this case $480, and order the parent with the higher salary to pay that figure as child support to the other parent. Here, John’s child support liability is probably between $450 and $750 per month, depending on other factors like property division, debt, expenses for the children and alimony.

The statutory frame work for the child support guidelines, and adjustments to those guidelines, can be found at RSA 458-C. The court will consider the following specific factors in making an order for child support:

·         Whether, in cases of equal or approximately equal residential responsibility, the parties have agreed to the specific apportionment of variable expenses for the children, including but not limited to education, school supplies, day care, after school, vacation and summer care, extracurricular activities, clothing, health insurance costs and uninsured health costs, and other child-related expenses.

·         Whether the obligor parent has established that the equal or approximately equal residential responsibility will result in a reduction of any of the fixed costs of child rearing incurred by the obligee parent.

·         Whether the income of the lower earning parent enables that parent to meet the costs of child rearing in a similar or approximately equal style to that of the other parent.

If you are involved in a child support case, it is important to get the facts and information that you need for your case. Often, that means hiring an experienced and knowledgeable attorney to represent you in court. Please consider contacting Crusco Law Office, PLLC to explore your options for representation.

 

New Hampshire child support formula

Child support in New Hampshire is calculated according to a formula set forth in RSA 458-C:3. The percentage of the parties’ income that will be the root of the calculation is based on how many children are receiving support.

Number of Children Percentage of Net Income 
1 = 25 percent
2 = 33 percent
3 = 40 percent
4+ = 45 percent

·           The total support obligation is calculated by multiplying the parents’ total net income by the percentage allocated for each child. You can find the definition of “net income” under RSA 458-C:2 VI.

·           Once the total support obligation is determined that amount will be divided between the parents in proportion to their incomes.

·           Parents’ income is adjusted in the formula for certain expenses that are allowed under the statute, such as child support obligations for other children, health insurance paid for the child(ren), state income taxes, and daycare expenses.  

·           There is a “self-support reserve” when calculating child support. The “self-support reserve” means the poverty level standard of need as established by the department of health and human services for a single individual living alone. If the paying parent's gross income is less than the self-support reserve and the court has determined that the parent is not voluntarily unemployed or underemployed, the court will order the minimum support order, which is $50.00. Additionally, if the paying parent’s gross income is greater than the self-support reserve, but the calculated support payment reduces the paying parent’s income below the reserve, the paying parent’s share is presumed to be the difference between the self-support reserve and the adjusted gross income but no less than the minimum $50.00 support order.