Professional Cardinal Bird Child Support Guideline Training

Income Share Model

Income Share Model, a widely adopted approach determining child support based on the proportional income of parents. This method ensures children receive the same financial support they would if the parents were together, covering expenses like healthcare and daycare equitably.






Sole Custody Guideline

To figure out child support using sole guidelines, you start by adding up the monthly basic child support amount from the statutory schedule, the child's health care, and work-related child-care costs to get the total monthly support obligation. Then, split this total based on the parents' income shares. Lastly, the noncustodial parent pays his or her share of this total to the custodial parent.








Income and Adjustments

In child support calculations according to Virginia Code § 20-108.2 (C), 'gross income' encompasses all income except specific exclusions. These exclusions include public assistance benefits, child support for other children, and secondary employment solely for child support arrearages. Self-employed parents, those receiving real-estate rental income, parents paying spousal support or child support for other children, and parents' who have natural or adopted children living with them may qualify for a downward adjustment to their gross incomes.


Military Leave & Earning Statement

The Leave and Earning Statement (LES) provides a detailed breakdown of a servicemember's pay, including entitlements, deductions, and allotments. Within the entitlement section, servicemembers find information on various types of pays and allowances, such as base pay, special and incentive pays (e.g., hazardous work, aviation), and allowances. Allowances address specific needs not directly met by the military, such as food and housing. All pays and allowances are considered income for child support purposes.






Healthcare Costs

Parents must share unreimbursed medical, dental, and pregnancy expenses for their child proportionally based on their income shares, as specified in child support orders. These reimbursements are in addition to the ongoing monthly child support amount. To receive reimbursement for pregnancy and delivery costs, a support petition must be filed within six months of the child's birth.

In contrast, costs for the child's health, vision, and dental coverage are included in the child support guideline amount. Health care coverage is defined as hospital, medical, or surgical care available to the child, by the parent or parent's spouse at a reasonable cost, which is no more than five percent of the responsible parent's gross income.

Complex Guidelines

When custody arrangements do not fit into the normal sole, shared, or split guidelines, it's time to look at these more complex custody scenario guidelines. Multiple Shared Custody is used when parents have different shared custody arrangements for multiple children, averaging custody days to determine support. Sole-Shared Custody is applied when one parent has sole custody of some children and shared custody of others, calculating and combining separate support amounts for each type. Split-Shared Custody is used for split custody of some children and shared custody of others, calculating and combining support for both arrangements.

Monthly Basic Child Support Obligation

The monthly basic child support obligation covers the child's living expenses, such as food, housing, and clothing, and ensures their general well-being. This obligation is calculated using a statutory schedule based on both parents' combined gross income and the number of children. The schedule specifies child support amounts for different income levels. If a parent's income varies from the schedule, the obligation is interpolated for fairness.



Shared Custody Guideline

To calculate shared custody child support, begin by determining each parent's income share, which is their proportion of the combined monthly gross income. Concurrently, calculate the custody share, reflecting the number of days each parent has physical custody of the child per year. Integrate these with the shared support need, calculated by multiplying the monthly basic child support obligation by 1.4 to account for the additional cost the parents incur for maintaining a shared custody arrangement.These elements work together to fairly distribute financial responsibility based on both income and physical custody.



Employment Income

To calculate gross monthly employment income for Virginia Child Support, consider the following steps: Take into account various pay periods, such as weekly, bi-weekly, semi-monthly, quarterly, and annual. Regardless of whether the employer compensates on an hourly or salary basis, understanding these pay cycles is crucial. If the employer hires an employee on a seasonal basis, amortize the seasonal pay over a year. When an employee's pay fluctuates from paycheck to paycheck, analyze year-to-date pay. Calculate the average monthly income based on the total earnings during the specified time period.

Self Employment Income

For self-employed parents, gross income encompasses all proceeds from their business. If they can demonstrate, by a preponderance of evidence, that a business expense is reasonable, they can deduct it from their gross income. However, for rental property, reasonable business expenses exclude acquisition costs, depreciation, and mortgage principal payments. When calculating child support, the analysis differs from tax liability determination. Child support considers only actual and necessary business expenses related to business operation. If an expense item serves personal use, it may not qualify as reasonable. Self-employed parents can also claim half of the self-employment tax paid.


Daycare Costs

Child-care costs due to the custodial parent's employment, along with children's monthly healthcare coverage, are added to the basic child support obligation. These daycare costs must be work-related and reasonably priced for quality licensed care. The custodial parent must provide cost verification upon the noncustodial parent's request. The court also considers the noncustodial parent's ability to provide care and any tax savings from child-care cost deductions, potentially adjusting the support amount.







OnLine Calculator

The Online Child Support Calculator offers a responsive, user-friendly interface and tailored worksheets for various custody arrangements, including third-party custody cases like when a grandparent has custody. Users can double-click on fields for income, daycare, and health insurance to launch an assistant that handles the heavy mathematical lifting. The interface includes tooltips to provide guidance, works seamlessly on both computers and phones, and is downloadable for offline use. Guideline worksheets also feature fields for users to insert notes. Designed for flexibility, it includes guided workflows for Social Security disability cases, autonomously inserts income and credits. With dynamic forms and other guided workflows, it simplifies complex scenarios while ensuring compliance with Virginia's guidelines, making it a go-to tool.

Child Support Selection

Delve into the critical decision-making process of selecting the right child support guideline from the three primary models: sole, shared, and split custody. Avoid the frustration of retracing your steps by mastering the strategic day-counting method that demystifies which guideline aligns with your unique custody situation. This presentation is meticulously crafted to provide you with a deep comprehension of the most suitable child support approach, tailored to your custody arrangement.

Split Custody Guideline

Split custody guidelines typically apply when each parent has physical custody of one or more children for whom support is sought, effectively creating separate family units. Under Virginia Code §20-108.2 (G) (2), child support calculations in such situations involve determining the basic support obligation separately for each family unit based on the number of children in that unit. Each parent's support obligation is then calculated as if they were the noncustodial parent, and the parent owing more pays the difference to the other, ensuring that financial responsibilities are fairly distributed based on custody arrangements and income levels.

Social Security Benefits / Income

Social Security Disability Insurance (SSDI) benefits, are counted as gross income in child support calculations, with dollar-for-dollar credits available for non-custodial parents when the child's derivative benefit is paid to the custodial parent. Supplemental Social Security (SSI) benefits are excluded from gross income and may exempt recipients from minimum child support obligations if they lack sufficient assets and are permanently disabled. The key difference is that SSDI is based on work history and contributions, while SSI is need-based and not dependent on work history.

Imputing Income

When a parent is unemployed or earning less than expected, the question of income imputation arises. This process holds the parent accountable for child support based on their potential income. It involves two steps. Firstly, it's crucial to ascertain if the parent's unemployment or underemployment is voluntary, by evaluating whether their employment status is due to personal choices or external factors. Secondly, their earning capacity is assessed using recent earnings or job market data. If specific job data is unavailable, the minimum wage serves as a baseline. The number of hours attributed at minimum wage can vary depending on factors, including the local unemployment rate.

Tax Considerations

A noncustodial parent can claim a child on their tax return by obtaining a signed IRS Form 8332 from the custodial parent. This form releases the claim to the child as a dependent for specified tax years, allowing the non-custodial parent to claim related tax benefits, such as the Child Tax Credit. Each year the form must be attached to the non-custodial parent's tax return.










Common Questions

Here are some frequently asked questions concerning contents of child support agreements, arrears and overpayments, what is considered income, best practices/policies for calculating child support, and interacting with DCSE.


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Highlights of the Income Share Model Presentation



Overview of the Income Share Model

The Income Share Model is adopted by forty-one states including Virginia as detailed in VA Code § 20-108.2. This model ensures that children receive the same proportion of parental income they would have received if the parents lived together.

Concept of Income Sharing

In intact households, both parents' incomes are typically pooled to benefit all members, including children. The model simulates this environment by pooling both parents' incomes in calculations to determine child support payments.

Calculating the Parent's Income Share

To calculate each parent's income share in simple mathematical terms, you follow these steps:

Application of the Income Share in Expenses

Parents contribute to the child's costs (statutory schedule amount, daycare, healthcare) in proportion to their income share. Example: If the child's monthly costs total $1239, Parent A contributes $782.26 (63.17% X $1239) and Parent B $456.74 (36.83% X $1239) based on their respective income shares.

Key Benefits of the Income Share Model

Conclusion

The Income Share Model is a robust framework for ensuring that children of separated parents receive adequate financial support that mirrors the economic advantages of a two-parent home. This presentation not only explains the theoretical underpinnings but also provides practical examples and calculations to demonstrate its application in real-life scenarios.

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Highlights of Monthly Basic Child Support Obligation Presentation

Introduction

Learning Objectives

Key Concepts

Guideline Schedule Overview

Interpolation

Special Rules for Income

Income Above $35,000

Income $350 and Below

Income Share Calculation

Conclusion

Unlocking Child Support Insights in Virginia: This video explored the intersection of the Virginia statutory guideline schedule and the income share model.

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Child Support Guideline Selection Highlights

Introduction

This guide offers a concise overview of the basic guidelines used to calculate child support, highlighting the differences among sole, shared, and split custody arrangements and the methodology for day-counting.

Custody Types Explained

Calculating Days

Key Scenarios

Day-Counting Examples

Challenges in Mediation

Issues such as calculating holiday time and determining school day credits can complicate custody arrangements and day-counting. Mediation can help address these issues by facilitating agreements on how to credit time during school hours and holidays.

Conclusion

Understanding the different types of custody and precise day-counting are crucial in calculating accurate child support. This guide simplifies the complexities involved, making it accessible for parents and legal professionals alike.

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Virginia Sole Support Guidelines Presentation Highlights

Introduction and Overview

The presentation begins with a review of child support guidelines, specifically focusing on sole, shared, and split custody arrangements in Virginia. It aims to enhance understanding of sole custody guidelines through detailed discussions and practical examples.

Understanding Sole Custody Support

Sole custody support is explained through the income share model, emphasizing the importance of calculating total monthly child support by including monthly basic child support, child(ren)'s health care coverage, and work-related childcare costs.

Detailed Calculation Process

  1. Calculating Combined Gross Income: Includes all income sources, setting the basis for proportionate sharing of child support responsibilities.
  2. Total Monthly Child Support Obligation: Summing up the monthly basic support obligations with additional costs for a comprehensive monthly figure.
  3. Determining Each Parent's Obligation: The total obligation is divided based on each parent's income share, calculating the noncustodial parent's monthly due.

Practical Application and Scenarios

The session includes various scenarios to demonstrate the application of calculations, followed by practice sessions to ensure attendees can effectively implement what they have learned.

Conclusion and Resources

The presentation wraps up with a summary and guides attendees to additional resources for further learning, emphasizing the importance of continual education on the topic.

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Highlights of the Shared Custody Child Support Calculations in Virginia

1. Introduction to Shared Custody Guidelines

Explains the application of Virginia Code §20-108.2 for calculating child support when a parent has custody of the child for more than 90 days per year. Provides a detailed walkthrough to ensure understanding and application of these rules effectively.

2. Understanding Income Share and Custody Share

Income Share: Calculated as each parent's gross income as a percentage of their combined gross monthly income.

Custody Share: The number of days each parent physically has the child, divided by 365.

Example: If Parent A has the child for 146 days a year and there are 365 days in the year, Parent A's custody share is approximately 40%.

3. Calculating the Shared Support Need

Example: Based on the parent's combined monthly income,the monthly basic child support obligation at $1,567 for their two children.

To adjust for shared custody, multiply the monthly basic child support obligation by 1.4: $1,567 x 1.4 = $2,194.

The result, $2,194, is the shared support need, reflecting additional financial responsibilities due to shared parenting.

4. Support to be Paid

Assume Parent B has a 40% custody share and Parent A has an income share of 60%.

Basic support reimbursement calculation: $2,194 (shared support need) × 40% (Parent B's custody share) = $878.

Adding costs: Parent B paid $200 for healthcare and $300 for daycare.

Total reimbursement owed by Parent A to Parent B: $878 (basic support) + $200 (healthcare) + $300 (daycare) = $1,378.

Final monthly support payment from Parent A to Parent B: $1,378 × 60% (Parent A's income share) = $827.

5. Final Calculation

Subtract the respective support amounts each parent owes to determine the net amount.

The parent who owes more becomes the payor, covering the difference to ensure equitable support.

6. Practical Example and Conclusion

Demonstrates calculations through practical examples to clarify implementation.

Emphasizes fairness, ensuring that support payments reflect actual financial contributions and custodial involvement.

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Highlights of the Split Custody Child Support Calculations in Virginia

1. Introduction to Split Custody Guidelines

Split custody guidelines are designed for families with multiple children where each parent has primary custody of different children. In cases where parents have only one child, split custody guidelines do not apply because there is no possibility of each parent having primary custody of a different child. Instead, arrangements such as sole custody or shared custody would be applicable, depending on the custody and living arrangements agreed upon or determined by the court. This ensures that child support calculations and custody decisions are tailored to the specific family structure.

2. Family Unit Analysis

The family unit analysis in split custody arrangements is unique due to the distinct setup where each parent has primary custody of one or more children from the same family, effectively creating separate family units for each parent. This configuration requires a tailored approach to child support calculations that differs significantly from typical sole or joint custody scenarios.

In split custody arrangements, the concept of the family unit directly influences the application of the statutory schedule of monthly basic child support obligations. Each family unit, defined by the child or children residing primarily with one parent, must be individually assessed according to the statutory schedule, which sets the base amount of support based on the parents' incomes and the number of children in that specific unit. The statutory schedule is applied to each unit independently. Calculation of Basic Support Amount: For each family unit, the statutory schedule provides a basic child support amount that is intended to cover the basic needs of the children, such as food, housing, and clothing.

3. Split Custody Calculations - think reimbursement

The questions on the guideline worksheet may seem counterintuitive at first glance. Take, for instance, the query: “The number of children for which the party is the noncustodial parent.” This phrasing is purposeful and relates to the principle of reimbursement. Essentially, the noncustodial parent compensates the custodial parent for expenses already paid on behalf of the children. To align with this reimbursement model, it is logical for the expenses incurred by Parent A to be reflected in Parent B's column. This arrangement facilitates the process whereby Parent B reimburses Parent A. The same rationale applies to the costs associated with the children's health insurance premiums and work-related daycare expenses. If Parent A has covered these costs, they should be recorded under Party B's column, indicating that Parent B is responsible for reimbursing these particular expenses to Parent A. This method ensures a clear and structured approach to managing financial responsibilities between parents.


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Highlights of Defining Income and Income Adjustments for Child Support Calculations

Introduction to Gross Income for Child Support: Virginia Code § 20-108.2 provides a comprehensive definition of 'gross income' for the purpose of calculating child support, encompassing nearly all income sources. This extensive scope ensures that the calculated support reflects an individual's true financial capability to contribute towards their children's needs. Gross income includes, but is not limited to, salaries, wages, commissions, royalties, bonuses, pensions, interest, annuities, capital gains, social security benefits, and unemployment benefits. It also covers less common sources such as workers' compensation, disability insurance benefits, veterans' benefits, spousal support received, rental income, and even occasional gifts, prizes, and awards.

Exclusions and Deductions from Gross Income: While the definition of gross income is broad, specific exclusions are applied to ensure fairness and accuracy in child support calculations. Income sources excluded under this statute include benefits from public assistance programs like TANF and SNAP, federal supplemental security income (SSI), child support received for other children, and income derived from secondary employment undertaken specifically to discharge child support arrearages. Additionally, when calculating adjustable gross income, necessary deductions are made for reasonable business expenses related to self-employment and rental income, spousal support paid, half of the self-employment tax paid, and any other support obligations legally recognized for other children or dependents. Another significant adjustment pertains to parents who have natural or adopted children in their primary custody who are not subjects of the current support proceedings. In such cases, the law presumes a deduction from the parent's gross income equivalent to the support obligation calculated from their income alone, as outlined in the Schedule of Monthly Basic Child Support Obligations.

Legal Interpretations and Adjustments: Significant case law helps clarify how income is treated in complex scenarios. In the Oley v. Branch case, the court determined that while personal injury awards compensating for lost wages are included as income, personal injury awards for pain and suffering are not included as income; free housing provided without an exchange of services is not counted as income in child support calculations; and Pell Grants are considered income due to their not being expressly excluded in the statute. Conversely, Alwan v. Alwan established that veterans' disability benefits are included in gross income calculations for child support, in that Veteran Benefits are expressly included in the statute as income. These cases illustrate the nuanced understanding required to accurately assess income, ensuring that child support determinations are both equitable and reflective of actual financial resources.

Practical Implications and Summary: This comprehensive approach to defining and adjusting gross income ensures that all financial resources available to a parent are considered in child support calculations, thereby facilitating fair and adequate support arrangements for children. By including a broad array of income sources and carefully specifying allowable deductions and exclusions, the guidelines aim to capture the true economic capacity of individuals. Understanding these principles is crucial for parents, legal practitioners, and courts to navigate the complexities of child support calculations effectively, ensuring that all contributions are justly calculated and that children receive the necessary financial support to thrive.

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Highlights of Employment Income

Calculating Gross Monthly Employment Income for Virginia Child Support

In Virginia Child Support cases, calculating gross monthly employment income accurately is essential. This process varies depending on the pay period type:

Weekly Pay

To determine monthly income, multiply the weekly pay by 52 weeks, then divide by 12 months. For example, if Arnold earns $650 per week, his annual income would be $650 * 52 = $33,800. Dividing this by 12 gives a monthly income of approximately $2,816.67.

Bi-weekly Pay

For bi-weekly earnings, multiply the amount by 26 pay periods, then divide by 12. If Peppa earns $650 bi-weekly, her annual income would be $650 * 26 = $16,900. Dividing this by 12, her monthly income would be about $1,408.33.

Semi-monthly Pay

Multiply the semi-monthly pay by 24, then divide by 12. If Peppa earned $650 semi-monthly, her annual earnings would be $650 * 24 = $15,600. Dividing by 12, her monthly income would be $1,300.

Quarterly Pay

Divide the quarterly earnings by 3 to get monthly earnings. For instance, if Arnold earns $2,500 in one quarter, his monthly income would be $2,500 / 3 = $833.33.

Annual Pay

Simply divide the annual salary by 12. If Peppa earns $81,500 annually, her monthly income would be $81,500 / 12 = $6,791.67.

Year-to-date Earnings

For fluctuating pay, calculate the number of days from January 1 to the pay period end date. Divide the year-to-date earnings by these days for a daily rate, then multiply by 365 (or 366 for leap years) and divide by 12. For example, if Arnold earned $8,000 by March 29 (89 days into the year), his daily rate would be $8,000 / 89 = $89.89. Multiplying by 366 (leap year) gives $32,899.74 annually, or $2,741.65 monthly.

Seasonal Work

Multiply the earnings per pay period by the number of periods worked, then divide by 12. If Arnold earns $375 weekly for 10 weeks in the summer, his total earnings would be $375 * 10 = $3,750. Dividing by 12, his monthly income is $312.50.

Hourly Wage

Multiply the hourly wage by the hours worked weekly, then multiply by 52 and divide by 12. For example, if Pepe makes $15 per hour and works 40 hours per week, her weekly income would be $15 * 40 = $600. Annually, this is $600 * 52 = $31,200, and monthly, it's $2,600.

Salary

If a salaried employee earns $50,000 annually, divide by 12 to get $4,166.67 per month.

For each case, use gross income rather than net income, as Virginia guidelines calculate child support based on gross monthly earnings.

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Highlights of Social Security Income

Understanding SSDI and SSI in Child Support Calculations

Social Security Disability Insurance (SSDI)

What it is: A federal system for disabled individuals based on work history and qualifying disability.

Benefit Structure:

Child Support Calculation:

Supplemental Security Income (SSI)

What it is: Need-based federal assistance for aged, blind, and disabled individuals with little or no income (not based on work history).

Benefit Differences:

Child Support Calculation:

Legal References: Virginia Code Section 20-108.2, Section C.

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Highlights of the Leave & Earning Statement

The Military Leave and Earnings Statement (LES) provides a comprehensive overview of a servicemember's pay, including base pay, allowances like Basic Allowance for Subsistence (BAS) and Basic Allowance for Housing (BAH), deductions, and entitlements. It serves as a detailed financial snapshot essential for calculating gross monthly income for child support purposes. The LES captures all entitlements, deductions, allotments, leave information, tax withholdings, and thrift savings plan contributions, similar to a civilian paystub.

In the Entitlement Section of the LES, various types of pays are included. This section details base pay, which is the fundamental component of military compensation, special and incentive pays for specific qualifications or duties such as aviation or hazardous work, and allowances like Basic Allowance for Subsistence (BAS) and Basic Allowance for Housing (BAH). These pays and allowances are considered part of the servicemember's total monthly gross income. Special pays and allowances are critical as they reflect additional compensation for unique responsibilities and living conditions.

Allowances are additional financial payments provided to servicemembers to cover specific needs not directly provided by the military, such as food and housing. The military gives these allowances to offset costs associated with living expenses when the servicemember does not receive these services directly. For example, Basic Allowance for Subsistence (BAS) helps cover meal costs, while Basic Allowance for Housing (BAH) assists with housing expenses when government housing is not available. These allowances are tailored to ensure that servicemembers have the necessary resources to maintain a reasonable standard of living.

It is crucial to include all types of military pay and allowances as gross income for child support calculations. This includes base pay, special pays, and allowances like Basic Allowance for Subsistence (BAS) and Basic Allowance for Housing (BAH), regardless of whether they are taxable. Moreover, income should not be adjusted downward for garnished arrearage repayments. This means that if a servicemember's pay is garnished to repay past-due child support (arrearages), this amount should not reduce the gross income amount. However, if there are ongoing child support payments for other children, these should be considered and can reduce the income available for new child support obligations.

Lastly, verifying the accuracy of the Military Leave and Earnings Statement (LES) is essential. This involves comparing the total entitlements with the year-to-date figures on the LES to ensure there are no significant discrepancies. Year-to-date figures are located on the top of the LES's Remarks section. By cross-checking these amounts, one can confirm that the monthly gross income used in child support calculations is accurate. This verification step is crucial for ensuring fair and equitable child support arrangements, as it ensures that all financial aspects are thoroughly considered.

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Highlights of Self Employment Income

Calculating Gross Monthly Income for the Self Employed Parent

For a self-employed parent, gross income is considered all proceeds from the self-employed parent's business. Upon self-employed parents' proving by a preponderance of the evidence that they have incurred a reasonable business expense, they are entitled to deduct the reasonable business expense from their gross income. For rental property, reasonable business expenses shall not include the cost of acquisition, depreciation, or the principal portion of any mortgage payment. The analysis for determining reasonable business expense is different for calculating child support than it is for determining tax liability. For child support purposes, the expense must be an actual and necessary expense required for the operation of the business. Furthermore, if an expense item is utilized for personal purposes, it may not be deemed a reasonable business expense—or at least a portion of its cost attributed to personal use may not qualify as a reasonable business expense.

In most cases, the self-employed parent will utilize the IRS Form 1040 Schedule C to document income and expenses. The total gross income amount is found in Part I, Line 1 of the schedule. Part II of the schedule addresses expenses. For each of the expenses, the child support analysis is utilized. The schedule C is a categorical summary of expenses. If issues are about specific categorical expenses or income, the self-employed parent may be required to bring in additional documentation of expenses and income. Under the agreement to mediate, the parties agree to provide full financial disclosure. In addition to claiming reasonable business expenses, the self-employed parent is entitled to claim ½ of self-employment tax paid. The self-employment tax owed is calculated on the Schedule SE; however, self-employed parents should produce documentation that they in fact paid the self-employment tax before receiving an adjustment.

The gig economy is a labor market characterized by short-term contracts, freelance work, and on-demand jobs facilitated by digital platforms, providing flexibility for workers but often lacking traditional employment benefits. Gig economy workers typically receive piecemeal compensation for tasks completed, tips from customers, bonuses for meeting specific targets, and commissions. This income varies widely based on the type and frequency of gigs. Gig economy workers typically incur expenses such as vehicle maintenance and fuel, insurance, equipment and supplies, software subscriptions, self-employment taxes, and home office costs, including utilities and internet, for conducting their business. Most Gig employers require additional insurance coverage on the Gig workers' vehicles for rideshare and delivery services.

During child support mediation involving self-employed parents, mediators take several key steps. First, they grasp the diversity of income sources that self-employed individuals may have—whether from freelancing, consulting, or other ventures. Understanding these nuances is crucial. Next, mediators become well-versed in the IRS Form 1040 Schedule C, which serves as the primary tool for documenting business finances. This familiarity enables them to guide discussions effectively. Facilitating open dialogue between parents about business expenses is essential, with a mindful approach to avoid bias regarding what qualifies as a reasonable business expense. Neutrality is paramount. When required, mediators promote comprehensive financial disclosure as stipulated in the mediation agreement the parties signed. Finally, when challenges arise, mediators play a critical role in ensuring the integrity of the mediation process.

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Highlights of Income Imputation

Income Imputation: Assessment and Calculation

You should consider whether to impute income when a parent claims to be unemployed or underemployed, and there is reason to believe this status is voluntary. This assessment is essential when the parents' employment choices directly impact their ability to pay child support. Factors such as quitting a job without just cause, reducing work hours, or taking a lower-paying job for personal reasons are indicators of voluntariness. The goal is to ensure fair support for the child by evaluating if the parent is not maximizing their earning potential due to personal preferences rather than unavoidable circumstances. Ultimately, the child should not suffer because of a parent's employment choice, and imputing income ensures the child's needs are met despite the parent's decisions. A parent's current incarceration of 180 days or more, shall not be deemed voluntary unemployment. If it is determined that income should be imputed to the parent, the second step in this two step-process is to determine the amount of imputed income.

To determine the imputed income amount, begin by examining the parent's recent earnings history. This can include pay stubs, W-2 forms, or 1099 forms from previous employment. Using these documents provides a concrete basis for estimating the parent's earning potential. If recent earnings data is unavailable or insufficient, refer to labor market data, such as the Bureau of Labor Statistics (BLS) Wage Survey Data, which offer comprehensive wage estimates for various occupations across different geographic locations. The easiest way to retrieve BLS wage survey data is through O*net online website at https://www.onetonline.org/ . Use the search function to find occupation-specific information. The site provides detailed pay information based on locality and or state. It provides both up-to-date annual earnings and hourly rates for over 800 occupations. This wage survey data can be used to determine the parent's earning potential.

Using minimum wage to impute income is appropriate when a parent has limited or no recent work history, lacks specific job skills, or has not actively sought employment despite being capable of working. This baseline ensures a fair and consistent approach, acknowledging the parent's potential to earn at least the minimum wage level. Minimum wage imputation is particularly relevant when the parent has no verifiable recent earnings data or when their previous employment was sporadic or insufficient to determine a realistic earning potential. It applies when a parent is healthy and able-bodied ensuring the child support calculations reflect the parent's ability to contribute financially.

When calculating income based on minimum wage or imputation based on an hourly wage, you must also impute a reasonable number of hours the parent could be expected to work. As a general rule, the lower the unemployment rate in the parent's locality, the higher the number of hours the parent could work. You should consult with local mediation coordinators, judges, or court specialists to ensure the number of hours imputed aligns with local practices.

When imputing income for a parent who lives out of state, you should use the minimum wage laws of the state where the parent resides and works. This approach ensures that the imputation reflects the actual earning potential in the parent's geographic location, which can vary significantly between states. The U.S. Department of Labor maintains a webpage with a compiliation of minimum wage amounts at https://www.dol.gov/agencies/whd/mw-consolidated .

In regards to imputing income to custodial parents, if the child for whom support is being sought needs daycare, you must also impute the cost of work-related daycare to the guidelines. This ensures that not only the child support guideline worksheet reflects the custodial parent's potential income but also the real costs associated with the custodial parent working.

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Highlights of the Children's Healthcare Cost & Child Support

Dollars and Diagnoses: Navigating Parenthood

Where child support meets stethoscopes, and every dollar counts toward a healthy future

Virginia Code Sections 20-108.2 D, D1, and E outline the financial responsibilities of parents regarding child support and associated healthcare costs. Parents must proportionally share unreimbursed medical, dental, and pregnancy expenses based on their income shares, as specified in child support orders. These reimbursements are additional to the monthly child support amount. Pregnancy and delivery costs must be petitioned within six months of the child's birth for reimbursement, unless there is good cause shown or the parties reach an agreement. Costs for the child's health, vision, and dental coverage are included in the child support guideline amount.

When healthcare coverage is paid by a parent's employer, calculate the cost per child by subtracting the cost of individual coverage for the policyholder from the total coverage cost, then divide the remainder by the number of covered individuals. For example, if the total monthly premium for family coverage is $600, and the cost for individual coverage for the policyholder is $200, the difference is $400. If there are four covered individuals (the policyholder, the child, and two other dependents), the cost per child would be $400 divided by 3, equaling approximately $133.33.

The reasonable cost test applies only to health care coverage and not to dental or vision coverage. Health care coverage, defined as hospital, medical, or surgical care, must be available at a reasonable cost, not exceeding five percent of the responsible parent's gross income. For example, if a parent's gross income is $50,000 annually, the maximum reasonable cost for healthcare coverage is $2,500 per year, calculated as follows:

Reasonable Cost = Gross Income × 0.05 = $50,000 × 0.05 = $2,500 per year ≈ $208.33 per month

The court can adjust these requirements if the health/medical insurance cost is above $208.33 per month, based on whether it serves the child's best interests. Health, dental, and vision coverage costs are included in the support obligation not only when available through a parent's employer but also when available through a parent's spouse's employer.

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Highlights of the Children's Work-Related Daycare Costs

Daycare Math: Where 4.333 Weeks Per Month Equals 99 Problems

Forget algebra; parents now solve for X, where X is the exact moment they realize their child's daycare bill is equivalent to a small mortgage payment.

Virginia Code § 20-108.2(F) outlines how child-care costs incurred due to the custodial parent's employment are integrated into the basic child support obligation. These costs are considered necessary to enable the custodial parent to work and must not exceed what is required for quality care from a licensed provider. The statute aims to ensure that child-care expenses are reasonable and directly related to employment, thereby supporting the child's well-being while the parent works.

To include child-care costs in the support calculation, they must be work-related and reasonable. The custodial parent must provide documentation verifying these expenses if requested by the noncustodial parent. This requirement ensures transparency and accountability, allowing the court to accurately assess and include these costs in the support order. Additionally, the court may evaluate whether the noncustodial parent can personally provide care, which could impact the necessity or reasonableness of the incurred child-care expenses.

Calculating the monthly work-related daycare cost involves converting various payment schedules into a consistent monthly figure. For weekly payments, the total cost is multiplied by 4.333 (the average number of weeks per month). Bi-weekly payments are multiplied by 26 (the number of bi-weekly periods in a year) and then divided by 12. Semi-monthly payments are simply doubled to determine the monthly cost. This method ensures that all costs are standardized on a monthly basis, regardless of the original payment schedule.

Seasonal variations in child-care costs, such as different expenses during the school year versus summer, require a more detailed approach. The total annual cost for each period is calculated and then averaged over 12 months. For example, if the child attends before and after school care for 42 weeks at a lower rate and full-time summer care for 10 weeks at a higher rate, these costs are combined and divided by 12 to find the monthly average. This method accounts for fluctuations in child-care needs and costs throughout the year.

The statute also allows the court to consider any tax savings the custodial parent may gain from deductions or credits related to child-care expenses. These tax benefits can affect the overall support amount, potentially leading to adjustments that reflect the actual financial burden on the custodial parent. By incorporating these factors, the court ensures a fair and comprehensive calculation of child support obligations.

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Highlights of the Children's Tax Benefits

Taxing Matters: Unlocking Children's Tax Benefits with Form 8332

Because raising kids may not come with a manual, but it does come with some helpful tax benefits!

To claim a child as a dependent on their tax return, a non-custodial parent must navigate specific IRS regulations, primarily involving IRS Form 8332. This form, known as the "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent," is essential for transferring the right to claim the child as a dependent from the custodial parent to the non-custodial parent. This process allows the non-custodial parent to potentially benefit from tax credits such as the Child Tax Credit, which can significantly reduce their tax liability.

The custodial parent, defined as the parent with whom the child lives for the greater number of nights during the year, must sign and date Form 8332 to officially release the claim to the dependency exemption. This release can apply to a single tax year or multiple years, depending on the agreement between the parents. It is crucial that the form is filled out correctly and attached to the non-custodial parent's tax return each year they claim the exemption. Without this signed form, the IRS will not recognize the non-custodial parent's claim, potentially leading to disputes or penalties.

Form 8332 also includes provisions for revoking the release of the claim. If the custodial parent decides to reclaim the right to the dependency exemption in future years, they must provide written notice to the non-custodial parent and revoke the release using the form. This revocation takes effect in the tax year following the year in which the non-custodial parent receives the notice. This ensures that both parents are aware of and agree to the terms under which the exemption is claimed.

It's important to note that while the Tax Cuts and Jobs Act of 2017 suspended personal exemptions until 2025, the release of the dependency claim via Form 8332 still affects eligibility for other valuable tax credits, such as the Child Tax Credit. This makes Form 8332 a critical tool for managing tax benefits in divorced or separated families. The custodial parent retains the ability to claim other benefits like the Earned Income Tax Credit and Child and Dependent Care Credit, highlighting the importance of understanding the nuances of these rules.

Additionally, a court can order the custodial parent to release the claim to the dependency exemption to the non-custodial parent, typically through a divorce decree, child support order, or a separation agreement incorporated into an order. This legal mandate ensures that the non-custodial parent can access the associated tax benefits, provided that Form 8332 is properly completed and filed.

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Highlights of the Complex Child Support Guidelines

Custody Combo: Demystifying Multiple-Shared, Sole-Shared, and Split-Shared Support

Your quick and easy guide to navigating the complex menu of child support arrangements, just like ordering your favorite fast food combo.

When the usual sole, shared, or split custody arrangements don't apply due to a mix of these arrangements, it's time to turn to the more complex custody arrangement guidelines: multiple-shared, sole-shared, or split-shared guidelines.

Multiple Shared Custody

Multiple Shared Custody is used when parents have different shared custody arrangements for multiple children. In this scenario, the total number of custody days each parent has with each child is added up, and this total is then divided by the number of children to find the average number of shared custody days. This average is used to calculate the child support owed by each parent, providing a fair and balanced support amount that reflects the time spent with all children.

Sole-Shared Custody

Sole-Shared Custody comes into play when one parent has sole custody of some children while both parents share custody of others. To calculate the child support obligation, first determine the per child amount by dividing the monthly basic child support obligation by the total number of children. For sole custody, multiply the per child amount by the number of children in the sole custody arrangement to find the pro rata monthly basic child support amount for sole custody. Do the same for the children in the shared custody arrangement. Once the pro rata share of the monthly basic child support obligation is determined for each custody arrangement, calculate the support amount in accordance with each specific custody arrangement and combine these amounts to determine the total child support owed.

Split-Shared Custody

Split-Shared Custody is used for more complex arrangements involving at least three children, where one child lives with one parent, another child lives with the other parent, and the parents share custody of the third child. The same per child calculation method applies here. First, determine the per child amount by dividing the monthly basic child support obligation by the total number of children. Calculate the pro rata share of the monthly basic child support for the children living with Parent A and do the same for the children living with Parent B. Then, calculate the pro rata share for the child in the shared custody arrangement. Once the pro rata share of the monthly basic child support obligation is determined for each custody arrangement, calculate the support amount in accordance with each specific custody arrangement and combine these amounts to determine the total child support owed.

These complex guidelines ensure that child support calculations accurately reflect the varied and sometimes complicated custody arrangements that can occur, providing fair support amounts that consider the unique circumstances of each family.

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Practice Scenarios


Income Share Practice Scenario's

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Hypothetical 1: The Overly Ambitious Entrepreneurs

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Facts: Jill and Jack both enjoy pretending to be billionaires during their weekly board game night. However, in real life, they each earn $3000 per month. They share custody of their imaginative son Timmy who believes his parents can do anything. The monthly basic child support obligation for Timmy based on their combined income of $6000 is $821. Additional costs include $400 for Timmy's superhero training (daycare) and $200 for health insurance.

Calculate the Income Share of Each Parent

Determine the income share percentage for Jill and Jack based on their individual incomes and their combined gross income.

Calculate Each Parent's Financial Contribution

Using the income share percentages, determine how much Jill and Jack each owe toward Timmy's total monthly expenses of $821 (basic child support), $400 (daycare), and $200 (health insurance).

Answer:

  • Parents' Combined Gross Income: $6000
  • Basic Child Support Obligation: $821
  • Daycare: $400
  • Health Insurance: $200
  • Total Monthly Expenses: $1421
  • Income Share of Each Parent: 50% each (since both earn $3000)
  • Each Parent's Contribution: 50% of $1421 = $710.50 each


Hypothetical 2: The Frugal Tech Wizard
and the Lavish Chef

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Facts: Leo the tech wizard earns $2500 a month from refurbishing old computers while Casey the chef earns $7500 a month by creating extravagant dishes. They have a daughter Zoe who humorously believes she can save money by eating cloud storage instead of food. Based on their combined monthly income of $10000, the monthly basic child support obligation for Zoe is set at $1042. Additional monthly expenses include $300 for daycare and $150 for health insurance.

Part 1: Calculate the Income Share of Each Parent

Task: Determine the income share percentage for Leo and Casey based on their individual incomes and their combined gross income.

Part 2: Calculate Each Parent's Financial Contribution Based on Their Income Share

Task: Using the income share percentages calculated in Part 1, figure out how much Leo and Casey each owe toward Zoe's total monthly expenses of $1042 (basic child support), $300 (daycare), and $150 (health insurance).

Answer:

  • Parents' Combined Gross Income: $10000
  • Basic Child Support Obligation: $1042
  • Daycare: $300
  • Health Insurance: $150
  • Total Monthly Expenses: $1492
  • Income Share:
    • Leo: 25% ($2500/$10000)
    • Casey: 75% ($7500/$10000)
  • Financial Contributions:
    • Leo's Contribution: 25% of $1492 = $373
    • Casey's Contribution: 75% of $1492 = $1119


Hypothetical 3: The Artist and the Accountant

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Facts: Maya, a landscape artist whose paintings sell during the full moon, earns $1000 per month. Sam, an accountant, earns $5000 per month. They have two children who dream of living on Mars. Based on their combined monthly income of $6000, the monthly basic child support obligation for their two children is $1226. Additional costs include $500 for daycare and $250 for health insurance. Their eldest child recently required braces, an out-of-pocket expense totaling $3000.

Part 1: Calculate the Income Share of Each Parent

Task: Determine the income share percentage for Maya and Sam based on their individual incomes and their combined gross income.

Part 2: Calculate Each Parent's Financial Contribution Based on Their Income Share

Task: Using the income share percentages calculated in Part 1, figure out how much Maya and Sam each owe toward the children's total monthly expenses of $1226 (basic child support), $500 (daycare), and $250 (health insurance).

Part 3: Reimbursement of Out-of-Pocket Medical Costs

Task: Calculate how much each parent should contribute towards the $3000 braces based on their respective income shares.

  • Parents' Combined Gross Income: $6000
  • Basic Child Support Obligation: $1226
  • Daycare: $500
  • Health Insurance: $250
  • Braces Cost: $3000 (one-time)
  • Total Monthly Expenses: $1976 (excluding braces)
  • Income Share:
    • Maya: 16.67% ($1000/$6000)
    • Sam: 83.33% ($5000/$6000)
  • Financial Contributions:
    • Maya's Contribution: 16.67% of $1976 = $329.40
    • Sam's Contribution: 83.33% of $1976 = $1646.60
  • Braces Cost Sharing:
    • Maya: 16.67% of $3000 = $500.10
    • Sam: 83.33% of $3000 = $2499.90


Hypothetical 4: The Undercover Clown and the Serious Scientist

Silly Artist

Facts: Ellie, who secretly performs as a clown, earns $4000 a month while Alex, a scientist who discovers new elements, earns $3000 a month. They share custody of twin girls Lucy and Emma. Lucy aspires to be a comedian like her mom and attends comedy workshops, while Emma loves science and participates in young scientist programs. Based on their combined monthly income of $7000, the monthly basic child support obligation for the twins is set at $1321. Additional expenses include $600 per month for Lucy's comedy workshops and $700 for Emma's monthly science programs, along with a $300 monthly cost for health insurance.

Part 1: Calculate the Income Share of Each Parent

Task: Determine the income share percentage for Ellie and Alex based on their individual incomes and their combined gross income.

Part 2: Calculate Each Parent's Financial Contribution Based on Their Income Share

Task: Using the income share percentages calculated in Part 1, figure out how much Ellie and Alex each owe toward the twins' total monthly expenses: $1321 (basic child support), $600 (Lucy's comedy workshops), $700 (Emma's science programs), and $300 (health insurance).

  • Parents' Combined Gross Income: $7000
  • Basic Child Support Obligation: $1321
  • Comedy Workshops: $600
  • Science Programs: $700
  • Health Insurance: $300
  • Total Monthly Expenses: $2921
  • Income Share:
    • Ellie: 57.14% ($4000/$7000)
    • Alex: 42.86% ($3000/$7000)
  • Financial Contributions:
    • Ellie's Contribution: 57.14% of $2921 = $1669.07
    • Alex's Contribution: 42.86% of $2921 = $1251.93


Hypothetical 5: The Maternal Grandmother's Financial Puzzle

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Facts: Linda, the maternal grandmother, has custody of her grandson Noah. Linda earns $3000 a month from her retirement pension and part-time job. Michelle, Noah's mother, earns $2500 a month and James, Noah's father, earns $4500 a month. Linda's financial contributions include her earnings as well as her paying $450 for after-school programs and $350 for the children's health insurance premiums. Noah's monthly expenses include $1321 for basic child support, $450 for after-school programs, and $350 for health insurance.

Task 1: Calculate the Combined Income Share

Calculate the income share percentage for the parties. Under Virginia Law, which incomes do you include in calculating the combined gross income.

Task 2: Determine Financial Contributions

Calculate how much Linda, Michelle, and James each owe toward Noah's monthly expenses.

  • Parents' Combined Gross Income: $7000 (exclude Linda's income)
  • Basic Child Support Obligation: $1321
  • After-school Programs: $450
  • Health Insurance: $350
  • Total Monthly Expenses: $2121
  • Income Share:
    • Michelle: 35.71% ($2500/$7000)
    • James: 64.29% ($4500/$7000)
  • Financial Contributions:
    • Michelle's Contribution: 35.71% of $2121 = $757.22
    • James's Contribution: 64.29% of $2121 = $1363.78



Monthly Basic Child Support Scenarios

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Scenario 1: Calculating the Monthly Basic Child Support Obligation

Neighbors cutting grass

Background Story: Larry and Gary are competitive neighbors who argue over everything from the best lawn mower to the fastest internet provider. Recently both decided to see who could more accurately calculate the monthly basic child support obligation. The competition is fierce as they race to calculate the monthly basic child support obligation for parent's who have a combined monthly gross income of $3250 and two children.

Statutory Schedule

$814 for the monthly basic child support amount based on combined Gross Monthly Income of $3250 [&] Two children.



Scenario 2: Interpolation

Background Story

Silly Math Duel

Emma, a math enthusiast and notorious overachiever at Oakwood High, challenges her friends to a "math duel" at lunch. The task is to calculate the monthly basic child support obligation for an oddly specific combined gross income of $6,775 for three children. This peculiar figure is chosen by Emma to keep her friends on their toes.

Statutory Schedule
  • Income Range: $6,750 to $6,800, which has a range of $50.
  • Support Range for Three Children: The child support at $6,750 is $1,524 and at $6,800 is $1,532, making the range $8 ($1,532 - $1,524 = $8).
  • Increase per Dollar: $8 / $50 = $0.16 per dollar.
  • Increment for $6,775: $6,775 is $25 above $6,750.
  • Increase from $1,524: $25 * $0.16 = $4.
  • Interpolated Support at $6,775: $1,524 + $4 = $1,528, which is in the middle of $1,524 and $1,532.


Scenario 3: Minimum Income Level

Background Story

Silly Math Duel

Bob, a local comedian, tries his hand at a more serious role as a financial advisor in a play. The scene? A dramatic revelation of monthly basic child support calculations for a combined monthly gross income of $300 for two children. The catch? The audience used the calculator to prove that his jokes don't add up!

Statutory Schedule

The monthly basic child support obligation for two children at the combined gross income of $300 is $104. The statutory schedule declares that $104 is the minimum monthly basic child support obligation for two children.



Scenario 4: The Royal Courtroom Drama

Background Story

Silly Dogs

In the whimsical town of Petropolis, courtroom dramas are taken to a whole new level. In the case of the century, two rival French poodles, Duke Fifi and Duchess Coco, are at odds over child support calculations. Both dressed in their royal finery, they have brought their case to the illustrious Judge Whippy, a wise and impartial whippet known for his keen sense of justice and fairness. Today, Judge Whippy is tasked to calculate the monthly basic child support obligation based on Duke Fifi and Duchess Coco's $40,000 combined monthly gross income and their four puppy poodles.

Statutory Schedule
  • Identify the child support for four children at $35,000 monthly combined gross income: $3,807 support amount;
  • Determine the excess income: $40,000 - $35,000 = $5,000;
  • Apply the Percentage for the Additional Support: $5,000 X 4.2% = $210.00.
  • Calculate the Total Support Obligation: $3,807 + $210 = $4,017.
Scenario 4 Answer


Scenario 5: Monthly Basic Child Support with Income Share Calculation

Background Story

Silly Dinner Picture

At the annual "Tech Titans Gala", the two biggest child support app companies are represented by their top executives, Alex and Jamie. For a friendly competition, they decide to solve a hypothetical child support case for a family with a combined income of $15,500 and five kids. The mother makes $9,500 and the father makes $6,000.

What is the monthly basic child support obligation?
What is each parent's income share of the monthly basic child support obligation?
Statutory Schedule
  • Combined Gross Monthly Income: $15,500
  • Number of Children: 5
  • Task 1: Look Up Monthly Basic Child Support Obligation
  • Task 2: Determine each parent's share of the monthly basic child support obligation.
  • Child Support from the Schedule: $3,041
  • Mother's Share of Child Support: $1, 864.00 - Calculated based on her income proportion.
  • Father's Share of Child Support: $1,177.00 - Calculated based on his income proportion.
Scenario 4 Answer


Child Support Guideline Selection

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Hypothetical 1: The Tale of Time and Custody

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In the land of calendars and custody, there lives a young knight named Jake who spends 320 days a year in the kingdom of his mother, Queen Alice. The remaining days he ventures to the realm of his father, Sir Bob. This scenario explores which guideline will best suit the royal family's needs, focusing on whether the Sole Custody Scepter, the Shared Custody Chalice, or the Split Custody Crown applies.

What is the correct child support guideline worksheet for this hypothetical scenario?
  • Sole Custody Scepter: Given that Alice has her son Jake for 320 days of the year, which exceeds the 274.5-day high-end threshold for shared custody, she would be considered the custodial parent and sole guidelines would be run.
  • Shared Custody Chalice: The shared custody guideline typically applies when both parents have significant and relatively equal periods of physical custody. In this case, since Bob has Jake for only 45 days of the year,which is less than the 90.5-day low-end threshold, shared custody would not be applicable.
  • Split Custody Crown: The split custody guideline is used when there are multiple children and each parent has primary custody of at least one child. Since there is only one child in this scenario, split custody does not apply.

Thus, Queen Alice, with her majority share of the days, would claim the sole custody guideline, while Sir Bob's limited days with Jake do not meet the threshold for shared custody. This makes Alice the primary custodian with the right to claim child support under the sole custody guideline.


Hypothetical 2: The Custody Tango - A Week-by-Week Dance

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Twin Time Tango: In the dance of days and nights, Chris and Dana perform the most synchronized of routines. With their twin stars in tow, they twirl through the weeks in a perfect pattern of custody.

What is the correct child support guideline worksheet for this hypothetical scenario?

Given the facts and arrangements detailed, both parents share custody equally. The day-count calculation confirms that each parent has the children for exactly half the year, adhering to shared custody guidelines. This ensures an equitable share of time with the children, fostering a balanced relationship for both parents and twins alike. Note: Whether you report 182.5 days for each parent or 182 days, the custody share % will remain the same at 50% each. The day count's sole purpose is to be used for calculating the custody share percentage for each parent.



Hypothetical 3: The Custody Chronicles: A Tale of Three Siblings

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The Custody Chronicles: A Tale of Three Siblings In the realm of family dynamics, Ellen and Frank's three children embark on a unique journey. The oldest sibling finds a home with Ellen, while the younger duo sets sail with Frank. Facts: The oldest child's calendar is marked with 365 days under Ellen's wing. The younger two share their laughter and adventures with Frank for over 274.5 days each year.

What is the correct child support guideline worksheet for this hypothetical scenario?

The arrangement is best classified as split custody. This type of custody is used when parents have more than one child, and each parent has full custody of at least one of the children. Split custody acknowledges the separate living arrangements of siblings and does not require the parents to share time with the same children.

Sole custody is characterized by one parent having the children for the majority of the time, more than 274.5 days per year. In this scenario, each parent has full custody of different children, meaning neither parent has all children under their care for the requisite number of days to qualify for sole custody of all children. Ellen has sole custody of one child, and Frank has sole custody of the other two, splitting the custody between them in a way that does not align with the traditional definition of sole custody.

Shared custody typically involves both parents having significant periods of physical custody of the same child or children. The general guideline for shared custody is that each parent should have the children for at least 90.5 days per year at the low-end. However, in this scenario, while each parent meets the day requirement with their respective children, they do not share custody of the same children. Each child lives predominantly with one parent, and thus there is no alternating or sharing of the children between the parents within the period that would meet the shared custody criteria.



Hypothetical 4: A Whippet's Tale of Weekend Wonders with Gary and Hannah

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Every Friday at 5:00 PM, Gary's weekend kicks off with a dash to Hannah's side, their loyal whippet trailing behind, convinced he's part of the welcoming committee. Their time together is a blend of storybook adventures and shared giggles over breakfast, until Sunday at noon, when their four-legged friend, with a scholarly look, signals it's time to part—marking the end of another chapter in their weekend storybook.

Question: How many full days and half days are spent together over a month with four weekends?

Here are the basic day-counting rules for child custody arrangements: Full Day: A period of 24 consecutive hours is counted as one full day. Half Day: An overnight stay that is less than 24 hours is counted as one half day.

Now, let's apply these rules to Gary and Hannah's situation: Gary picks up Hannah at 5 PM on Friday and they spend quality time together until 12 PM on Sunday. This timeframe includes: Friday 5 PM to Saturday 5 PM: This is a 24-hour period, which counts as one full day.

Saturday 5 PM to Sunday 12 PM: This is a 19-hour period, which is less than 24 hours but includes an overnight, so it counts as one half day.

Therefore, each weekend, Gary spends one full day and one half day with Hannah.

Over a month with four weekends, this adds up to:

4 weekends x (1 full day + 1 half day) = 4 full days + 4 half days

Since two half days are equivalent to one full day, we can further simplify this to:

4 full days + 2 full days = 6 full days

In conclusion, over four weekends, Gary and Hannah enjoy six full days together.



Hypothetical 5: Holiday Harmony for Kyle:

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Winter Wonderland: Kyle's parents, John and Irene, have decided to share the magic of the winter holidays. The holiday season begins when school wraps up at 5 p.m. on the first day of the holiday. Kyle will then be with one parent until 12 p.m. on Christmas Day. From Christmas Day at noon, the holiday baton is passed to the other parent, and this arrangement continues until school reopens at 8 a.m.

Spring Break Sunshine: When it comes to Spring Break Week, Kyle's parents have agreed to take turns each year. This ensures that both parents get to enjoy this sunny break with Kyle in alternating years from 5:00 pm on the Friday Spring Break begins to the following Friday at 8:00 pm.

This Year's Yuletide and Springtime Plans: Winter Holiday: This year, John will be creating holiday memories with Kyle starting from 5 p.m. on December 19th, continuing until 12 p.m. on Christmas Day. Irene's parenting time extends from noon on Christmas Day to 8:00 a.m. on January 2nd. Spring Break: As for Spring Break, Irene will be soaking up the springtime sun with Kyle for the entire duration of the break this year.

What the parents' day-count for the winter holiday and for spring break?
Winter Holiday Answer: John has Kyle 5.5 days and Irene has Kyle 7.5 days

For John: December 19th to December 24th are 5 full days. Days Counted: 19th to 20th at 5:00 p.m., 20th to 21st at 5:00 p.m., 21st to 22nd at 5:00 p.m., 22nd to 23rd at 5:00 p.m., 23rd to 24th at 5:00 p.m. are full days. December 24th to December 25th is a half day. December 24th at 5:00 p.m. to December 25th at 12:00 p.m. is only a half day because it is less than 24 hours but includes an overnight.

Irene's custody for this period totals 7.5 days: 7 full days: From December 25th at noon to January 1st at noon (each full day starting and ending at noon). 0.5 day: From January 1st at noon to January 2nd at 8 a.m., which includes an overnight but is less than 24 hours.

Spring Break Answer: Irene has Kyle 7 days

Here the 5 p.m. pick-up time is earlier than the 8 p.m. drop off time so you know there are no half days involved. There are seven 24 hour periods between the pick-up day and the drop off day.

For mediation purposes, the parties could split the difference for the Winter Holiday and agree that each parent gets 6.5 days per year due to the holiday rotation. For spring break, the parties agree that each parent gets 3.5 days per year due to the break rotation.




Sole Child Support Guidelines

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Hypothetical 1: Calculating Child Support: Alice and Mark's Journey

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In a scenario where Alice is the sole custodian of their 5-year-old child, with her own income at $3,000 and Mark's at $2,000, the question arises:

How much would Mark contribute in child support to uphold the well-being of their child?

Mark's Obligation: $302
Income Calculation:

Alice's Monthly Gross Income (Party A): $3,000 Mark's Monthly Gross Income (Party B): $2,000 These incomes are summed to determine the Combined Monthly Gross Income of $5,000.

Sole Child Support Needs:

The combined income is $5,000, and there is one child for whom support is being sought. The Monthly Basic Child Support Obligation is calculated at $755. This amount comes from a statutory schedule that considers the combined income and the number of children. The statutory amount reflects the presumed amount of money to meet the child's basic needs. Since there are no entries for Monthly Healthcare Coverage Costs or Work-Related Daycare Costs in this example, these are presumably $0, making the Total Monthly Child Support Obligation also $755.

Calculation of Each Party's Obligation:
Calculation of Each Party's Obligation:

Income Share: The total monthly income is divided proportionally based on each party's earnings. Alice's income constitutes 60% of the combined income ($3,000 is 60% of $5,000), and Mark's income constitutes 40% ($2,000 is 40% of $5,000). Monthly Support Obligation: Alices share (60% of $755) is calculated as $453. However, as the custodial parent, her portion is typically assumed to be used directly for the child's expenses. Mark's obligation (40% of $755) is calculated at $302. This is the amount Mark owes to Alice monthly for child support to ensure the financial needs of their child are met according to the calculated guidelines.

soleGuideline

Hypothetical 2:Bob, the passionate accountant

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Bob, the passionate accountant and table enthusiast, meticulously charts every dollar and cent. With his own income of $3,500 and a thrifty $175 for health insurance, he's the ledger hero his two teens didn't know they needed. Jane, matching Bobs financial fervor, brings in $4,500 monthly, setting the stage for a spreadsheet saga of child support calculations:

soleGuideline
Parents' Income Share Calculation:
Jane's Income Share: 56.25% [&] Bob's Income Share: 43.75%

To figure out how much each parent should pay for child support, we look at how much money they each make compared to the total money both parents make together. For instance, if one parent makes $4,500 and the other makes $3,500, their total income is $8,000. We calculate the share of each parent by seeing how much of the total $8,000 each parent makes. Jane makes about 56.25% of the total, and Bob makes about 43.75%. This helps us decide how much each parent should contribute to the costs of taking care of their child.

Bob and Jane's Monthly Basic Child Support Obligation: $1424
soleGuideline
Bob's share of the total monthly support obligation ($699.56):

Calculate the Total Monthly Child Support Obligation: Start with the basic child support amount of $1,424. To this, add the health insurance cost that Bob pays for the children, which is $175. Assuming there are no work-related daycare costs mentioned, the total monthly child support obligation would then be $1,424 + $175 = $1,599. Determine Bob's Share: Bob's income share is 43.75% of the total combined gross income. To find out how much he needs to contribute towards the total monthly child support obligation of $1,599, multiply $1,599 by 43.75% to get $699.56.

Bob's monthly support amount after the adjustment for his monthly health insurance cost for the children:

Let's break down the calculation to clarify how Bob's contribution towards health insurance is managed in the child support framework:

1. Incorporation of Health Insurance Costs:

Initially, the $175 health insurance cost is added to the monthly child support calculation, resulting in a total monthly support obligation. Both Bob and Jane are theoretically responsible for this $175 based on their income shares.

2. Bob's Income Share Impact:

Bob's share of the combined income is 43.75%. When the total monthly support obligation, including the health insurance cost, is calculated, Bob is effectively responsible for 43.75% of the $175 health insurance cost. This equates to:

[$175 times 0.4375 = $76.56]

This amount ($76.56) is what Bob would be expected to contribute towards the $175 health insurance cost based on his income share.

3. Dollar for Dollar Credit:

When Bob is given a dollar-for-dollar credit for paying the entire $175 himself, it accomplishes two things:

Reimbursement for Bob's Share:

The first part of the credit reimburses Bob for the $76.56, which he was responsible for according to the child support calculations.

Reimbursement for Jane's Share:

The remainder of the credit covers the portion of the health insurance that Jane would have been responsible for, based on her income share. Since Bob paid the entire cost, he essentially covers Jane's portion as well. Jane's responsibility, calculated similarly by her income share (56.25%), would be:

[$175 times 0.5625 = $98.44]

Adding these together: [$76.56 (Bob's share) + $98.44 (Jane's share) = $175]

By crediting Bob $175, it effectively acknowledges his payment of the entire health insurance amount, compensating him not only for his portion but also reimbursing him for covering Jane's part of the responsibility. This accounting ensures that Bob is not unfairly burdened by paying more than his share and recognizes his upfront payment for an expense typically shared by both parents in proportion to their incomes.

Bob's Adjusted Monthly Support Obligation: $524.56

This is the amount Bob needs to pay monthly after accounting for his monthly direct payment of the health insurance costs.

$699.56-$175=$524.56

soleGuideline


Hypothetical 3: Dollars & Diapers: Balancing Budgets and Bedtimes in Metroville:

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In the bustling cityscape of Metroville, where life pulses around the clock, Tom, a dedicated police officer, serves his community with unwavering commitment, earning $7,500 each month. When he's not on duty, Tom's heart belongs to his three exuberant children, filling his off-hours with laughter and playful chaos. As a devoted father, he ensures their well-being by contributing $375 monthly towards their healthcare, a testament to his dedication both on and off the streets.

Carla, the children's custodial parent and a skilled financial planner, navigates the complexities of raising their energetic brood with a strategy as precise as her financial forecasts. On a salary of $6,000 per month, she expertly balances the family budget, which includes $800 for daycare—a necessary expense that allows her to maintain her career momentum. This financial dance between Tom and Carla is a delicate balance of contributions and care, highlighting a modern co-parenting arrangement that thrives on mutual respect and a shared commitment to providing for their children's futures. Together, they create a dynamic narrative of love, support, and responsibility, ensuring their children thrive in the midst of Metroville's endless hustle.

What is Tom's monthly adjusted support obligation?

Tom's monthly adjusted support obligation is $1,527.53

soleGuideline

Hypothetical 4: Shadows of Support:
The Custodial Ledger:

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In the shadowy folds of financial interplay, Scenario 4 unveils the intricate dance of support and sacrifice between Victor, the guardian of whispers, and Ann, the enigmatic financier. In this realm, Victor stands as the custodial sentinel for their three children, ages 2, 7, and 14, nurturing them within the sanctum of his $5,500 monthly earnings, bolstered by a mysterious $2,000 monthly stipend—spousal support from the elusive Ann. Her coffers brim with $9,000 monthly, a bounty of her secretive labors in the financial districts where numbers dance and secrets thrive.

Amidst this intricate financial ballet, shadow costs lurk; Victor, with a guardian's resolve, allocates $350 monthly to shroud his offspring in a veil of health insurance premiums. Meanwhile, Ann, the distant matriarch, channels $600 each month into the unseen corridors of work-related daycare, ensuring her progeny's safeguarding while she maneuvers the chessboard of commerce.

What is the depth of Ann's child support obligation before and after the veil of daycare costs descends?

Anne's monthly support obligation before the adjustment is $1,312.73:
Anne's monthly support obligation after the adjustment is $1,002.41:

Anne's Daycare Payment

Ann (noncustodial parent) paid the full monthly work-related daycare cost of $600. According to the financial arrangement, Victor (custodial parent), responsible for 51.72% of the income share, should reimburse Ann for his proportionate share of these costs. Calculating 51.72% of $600 gives $310.32, which is the amount Victor needs to pay Ann. By offsetting the $310.32 from the $1,312.73, Anne's monthly support obligation is reduced to $1,002.41.

Sole Custody Financial Guidelines

Hypothetical 5: Grandma's Daycare Diaries:
Adventures in Raising the Little Ones:

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In the quaint suburban lanes where lawnmowers buzz more frequently than bees, Grandma Helen has assumed the role of Super Nana, overseeing the chaotic but charming lives of two spirited youngsters, aged 5 and 13. Between sprints of chasing after a hyperactive kindergartner and navigating the moody waters of teenage angst, Helen manages not just toys and homework but also the $1,000 daycare tab, all while Emily and Paul, the non-custodial parents, fund their escapades from a distance.

The financial adventures of Emily and Paul, who respectively earn $12,000 and $9,500 a month, seem like fairy tales to Helen as she juggles daycare costs with her superhero grandma duties. With Medicaid thankfully keeping healthcare costs at bay, Helen's days are filled with more love and laughter (and a few quiet sighs of relief during naptime). In this modern family setup, Grandma Helen shows that while money doesn't grow on trees, occasionally it does fall from the pages of coloring books and into the cushions of couch forts.

Emily's monthly support obligation before the daycare adjustment is: $1,361.76
Emily's monthly support obligation after the daycare adjustment is: $1,919.86

Paul's monthly support obligation before the daycare adjustment is: $1,078.24
Paul's monthly support obligation after the daycare adjustment is: $1,520.14

soleGuideline



Shared Child Support Guidelines

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Hypothetical 1: The Bear Necessities

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The Bear Necessities

Ted and Alice share custody of their son, Barry, who is obsessed with bears. Ted, making $3,500 per month, and Alice, earning $4,500 per month, have a combined monthly income of $8,000. Ted has Barry for 130 days a year, spending their days visiting zoos and bear sanctuaries, while Alice, who has Barry for the remaining 235 days, grapples with his insistence on eating only "bear-friendly" foods. Ted had to finance a renovation to his basement to convert it into a cave-like dwelling.

Since additional personal expenses like basement renovations and specialized diets are not considered in the child support presumptive guideline calculation, calculate the following:

Parents' Income Shares:

Each parent's income share is determined by dividing their gross monthly income by the combined monthly income of both parents.

Ted's income share is calculated as 3500 divided by 8000 = 0.4375 and then multiplied by 100 to arrive at 43.75%.

Alice's income share is calculated as 4500 divided by 8000 = 0.5625 and then multipled by 100 to arrive at 56.25%.

These percentages reflect each parent's proportional financial responsibility towards the total child support needed, ensuring that contributions are fair and aligned with their financial abilities.

Barry's Shared Support Need:

The child's support need, in this case, is $1,337.00 per month. This amount is derived by applying a 1.4 multiplier to the monthly basic child support obligation of $955.00 which comes from the statutory schedule. This adjustment accounts for the increased expenses associated with shared custody, ensuring that the child's financial needs are met in both parental homes."

Each Parent's custody share:

To calculate each parent's custody share under the shared child support guidelines, you begin by determining the total number of days each parent spends with the child over the course of a year. This figure is then divided by the total number of days in the year (365), which yields the custody share as a percentage. For instance, Tom has Barry for 130 days, his custody share is calculated as 130 divided by 365 multiplied by 100 to arrive at 35.62% custody share.

Alice has Barry for 235 days, her custody share is calculated as 235 divided by 365 multiplied by 100 to arrive at 64.38% custody share.

The amount each parent owes the other:

To calculate child support in shared custody situations, the process begins by determining how much each parent owes based on the shared support need, reflecting the total cost required to support the child, adjusted for the time they spend with each parent. Specifically, Barry's shared support need is $1,337.00 per month, we first compute the financial responsibility for each parent according to their custody share. For instance, Alice, who has Barry for 64.38% of the time, is associated with a preliminary financial responsibility of $860.76, which represents the costs attributed to Barry's needs during the time Barry spends under Alice's care.

The adjustment using income shares then tailors these preliminary amounts to match each parent's ability to contribute, based on their earnings. Ted's contributing 43.75% of the combined gross monthly income, is therefore responsible for 43.75% of the support amount calculated for the time Barry spends with Alice, leading to a payment of $376.58. This adjustment ensures that Ted's payment towards child support effectively reflects both the proportion of time that Alice cares for Barry and Ted's capacity to pay, calculated as a fraction of the total child-related costs incurred during Alice's custody period. The final child support payment is then established by subtracting Alice's adjusted contribution ($267.88) from Ted's ($376.58), resulting in Ted's paying $108.70 per month. This net payment compensates Alice for the additional support provided during her custody time, ensuring that financial contributions are equitable and proportional to both income and physical custody responsibilities.

Hypothetical 2: The Science Experiments

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The Science Experiments

Lucy and Ricky share custody of their twin daughters, each parent spending 182.5 days with them annually. Ricky, making $4,000 a month, converts his garage into a mini-science lab, indulging their daughters' interest in science with $300 monthly on supplies. Lucy, earning $6,000 monthly, manages the aftermath of glitter and vinegar volcanoes at home. She also covers $250 monthly for work-related daycare and $100 for health insurance. The twins' combined exposure to both structured and creative learning environments enriches their educational experience.

Calculate the presumptive child support guideline amount?

Which parent owes the other monthly child support after subtracting the support amounts one parent owes from the other?

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Why should Lucy have to pay Ricky money monthly since not only does she have the children 50% of the time but she also pays the children's health insurance and daycare costs?😕

If Lucy were not covering the $350 for healthcare and daycare, her net child support payment to Ricky would likely be approximately $313.40 per month. This is significantly higher than the $79.38 per month she pays in the current arrangement where she does absorb the costs of healthcare and daycare. This demonstrates how these direct payments for the children's needs effectively reduce her net child support obligation, balancing the financial responsibilities between both parents while considering the children's welfare and the parents' financial capabilities.

Hypothetical 3: The Soccer Star and the Artist

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The Soccer Star and the Artist

Emma and James share custody of Leo, who is equally passionate about soccer and art. With James making $2,500 a month and Emma earning $90,000 annually, they both contribute to Leo's active lifestyle, which includes window repairs from soccer mishaps and supplies for wall murals, costing each parent $150 per month. Additionally, James covers $375 monthly for work-related daycare. James has Leo on Medicaid. Now that James has Leo for 200 days a year due to soccer practices and games, calculate the monthly presumptive child support amount.

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Hypothetical 4: The Costume Craze

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The Costume Craze

Mark and Joan share custody of Chloe, an aspiring actress who requires costumes for her constant living room performances. Mark earns $50,000 a year, and Joan earns $150,000, with a combined monthly income for support calculations. Mark has Chloe for 120 days, during which he spends $100 monthly on new costumes. Joan, enduring the remaining 245 days, doubles as an audience and a costume seamstress, spending $250 on fabrics monthly.

Calculate the monthly presumptive child support amount.

shared guideline

Hypothetical 5: The Numerical Nook of Splitville

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The Numerical Nook of Splitville

In the numerically named town of Splitville, the Fraction family's tale is a blend of humor and arithmetic. Mrs. Fraction, a Puzzle Architect, designs brain-teasers for the Logic Labyrinth, earning $3,250 monthly. She oversees the kids, Vector and π, for 150 days, managing health insurance payments of $182 and daycare costs of $219. “If laughter paid the bills, we'd be millionaires!” she'd jest. Mr. Fraction, the town's Probability Magician, earns $3,800 monthly, enchanting with mathematical marvels. Hosting the children for the remaining days, he quips about bartering jokes for daycare, with work-related costs of $382. Their ledger of earnings, laughs, and shared responsibilities paints a vivid picture of a family navigating life's equations with creativity and care.

shared guideline



Split Guidelines Scenarios

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Hypothetical 1: The Artistic Duo and The Game Hosts

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The Artistic Duo and The Game Hosts

Melody and Monte navigate the waters of split custody with a unique blend of interests under their roofs. Melody's monthly income of $4,500 supports a home brimming with creativity, where two of their four children explore their love for painting and music amidst a sea of art supplies and melodies. Meanwhile, Monte, with a monthly income of $5,000, fosters the sharp intellect of the other two children who are not just science fair champions but budding game show geniuses, ready to buzz in with the right answers. The daycare costs of $800 are managed by Melody, while Monte covers the children's health insurance premium of $200. This arrangement reflects the diverse talents and needs of their children, ensuring that each parent's home is a haven for the child's passions.

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Section B: Child Support Calculations for Split Custody

Columns Overview: The columns in this section are designed to reflect the cross-responsibilities of each parent. Specifically, Melody's column includes expenses incurred by Monte, while Monte's column lists expenses incurred by Melody. This arrangement facilitates the calculation of reimbursement amounts owed between the parents. The total expense in each parent's column is multiplied by their respective income share percentage to determine the actual reimbursement owed.

Detailed Breakdown:

  • B1 - Basic Child Support Obligation: This entry is crucial as it quantifies the fundamental cost of raising children, such as essentials like food, shelter, and clothing. The amount in Melody's column, for instance, signifies the presumptive cost Monte would shoulder for the children with him, and vice versa.
  • B2 - Health Care Coverage Costs: This entry captures the health care coverage costs paid by one parent, which are then noted in the other parent's column for reimbursement purposes. For instance, Monte's $200 payment for the children's health care is recorded in Melody's column.
  • B3 - Childcare Expenses: Employment-related childcare expenses paid by one parent are also documented in the other parent's column. In this case, Melody paid $800 for work-related childcare and the cost is inserted in Monte's column. This ensures that Melody who paid the expense is reimbursed by Monte, according to his income share.
  • B4 - Total Expenses: The sum of basic child support, health care coverage, and childcare expenses is calculated for each parent. These totals represent the costs each parent has incurred on behalf of the children, which are then placed in the other parent's column to highlight the reimbursement process.
  • B5 - Total Monthly Child Support Obligation: This section delineates the precise monthly amount each parent owes the other after applying their income share to the total reimbursement cost. For example, Melody's total reimbursement cost of $1,705 is multiplied by her income share of 47.37% to arrive at her monthly obligation of $807.66.
  • B6 - Payable To: This final part indicates the net payer and the net amount due after offsetting the obligations. This calculation ensures that the parent who has effectively paid more towards the children's needs is compensated by the other, balancing their financial contributions.


Hypothetical 2: Pickleball Prodigies and Diaper Duties: The Bolt Family Balancing Act

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Pickleball Prodigies and Diaper Duties: The Bolt Family Balancing Act

In the intricate dance of finances and family, Jordan Bolt and Serena Bolt choreograph their steps with precision and love. They share three vibrant children: a teenage daughter with Jordan, whose Pickleball prowess promises a future of swift serves and victories, and twin tots with Serena, whose days are a delightful parade of giggles and growth.

Jordan, on a steady income of $3,800, single-handedly secures the health of their trio with a monthly shield of $250. Serena, with the grace of a seasoned performer, earns $4,200 and skillfully directs $1,000 towards the twins' daycare, ensuring their spotlight shines bright. Together, Jordan and Serena craft a legacy of support and nurture, guaranteeing that each child, whether chasing balls or dreams, flourishes in the warmth of their joint devotion.

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In Row A10 of their split guideline worksheet, Jordan's column shows “2” for the twins living with Serena, and Serena's column has “1” for the teen living with Jordan. This setup allows them to fairly share child-related expenses, with each parent reimbursing the other parent for costs incurred by the other parent in caring for the children in his or her care.

In Row B1, $1,424 represents the twins' monthly basic child support obligation residing with Serena. Because Jordan has a duty to reimburse Sabrina for this cost based on his income share, the amount is placed in his column. Added to this is the $1,000 daycare expense Serena pays, resulting in a total amount of $2,424.00. By multiplying the $2,424.00 by Jordan's 47.50% income share, we arrive at $1,151.40 for the total monthly child support obligation Jordan owes Serina. We follow the same analysis to arrive at Serina's monthly child support obligation owed to Jordan.

In Row B1, $955 represents the teen's monthly basic child support obligation residing with Jordan. Because Serena has a duty to reimburse Jordan for this cost based on her income share, the amount is placed in her column.Added to this is the $250 healthcare expense Jordan pays, resulting in a total amount of $1,205. By multiplying the $1,205 by Serena's 52.50% income share, we arrive at $632.63 for the total monthly child support obligation Serina owes Jordan.

The final analysis is netting out the total monthly child support obligation each parent owes to the other parent. Subtacting the $632.63 from the $1,151.40, we arrive at $518.77, which on the guideline worksheet is a penny off due to rounding ($518.78).



Hypothetical 3: The Zen Den and The Punk Rock Palace

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The Zen Den and The Punk Rock Palace

In the suburban split of Kendra and Brad, two homes tell a tale of eight children divided by space but united by blood. Kendra's abode is a sanctuary of peace, where two teenagers, now under her sole guidance, explore the realms of yoga and meditation. With an income of $2,800, Kendra, the Pilates guru, ensures that her home is not just a place of spiritual practice but also a fortress of financial stability.

Across town, Brad's household is a cacophony of punk rock, where six young rebels strum the strings of independence. As a chiropractor with a hefty $12,000 monthly income, Brad supports his brood's musical mayhem while also contributing $1,500 in child support for other children from another relationship and $250 for monthly healthcare premiums for their six punk rockers.

Kendra, contributing $200 per month for the two yogi's monthly health insurance premiums, ensures they are not just spiritually but also physically covered. It's a modern family saga where child support meets guitar riffs, and meditation meets amplification.

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Brad owes Kendra $977.51

In the financial ensemble of child support, the number of children in each household sets the stage for a complex performance. Despite Brad having six of the children and Kendra only two, the obligation for child support isn't solely based on custody headcount. It's a multifaceted composition that considers various factors, including income disparity. With Brad's adjusted monthly income significantly higher at $10,500 (78.95% income share) compared to Kendra's $2,800 (21.05% income share), the scales of financial equity tip towards balancing the children's quality of life across both households. This ensures that all eight children, regardless of which parent they live with, can strum the strings of opportunity equally.



Hypothetical 4: Green Smoothies and Game Trails: The Wholesome Hunt for Child Support

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Green Smoothies and Game Trails: The Wholesome Hunt for Child Support

Evan and Mia have three children: Hunter, Fisher, and Sage. Sage lives with Mia and Hunter and Fisher live with their grandmother, Nannie Cookie. Mia makes $3500 per month as a teacher's assistant. Evan, a long distance truck driver is on the road and abandoned his family. According to the Bureau of Labor Statistics, Evan's monthly earning capacity is $4200. Sage is into vegan cooking while Hunter and Fisher are passionate about becoming big game hunters when they grow up. Nannie Cookie, who earns $7500 monthly as software engineer, pays $500 per month to Trail Blazer Daycare for Hunter and Fisher. Nannie Cookie seeks child support from Mia and Evan. Unfortuately, Evan is nowhere to be found.

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Why use sole guidelines when Mia and Nannie Cookie have split custody of the children with Hunter and Fisher living with Nannie Cookie and Sage living with Mia?

Split custody guidelines are intended to offset child support amounts owed by each parent when they each have custody of one or more children. However, since Nannie Cookie is not a parent but a grandparent, she does not owe child support for Sage. Therefore, employing split custody calculations in this scenario would not be suitable. Instead, the sole custody guidelines are applied to determine Mia's financial responsibility for Hunter and Fisher, reflecting the legal framework designed to assess a parent's financial duty to their children.

Should Mia be 100% responsible for Hunter and Fisher's expenses or should Evan's finances be considered?

This question is ideally addressed by a mediation coordinator or directly through the court. The parties involved may reach a consensus on the approach to use, or they may require external guidance. Understanding Evan's employment as a long-distance truck driver allows for a more accurate assessment of his earning capacity. Resources such as the Bureau of Labor Statistics provide valuable insights into wage data. For instance, O*NET, a comprehensive occupational resource, reveals that the average monthly income for a long-distance truck driver in Virginia is approximately $4,200. Such information is crucial for informed decision-making during mediation or court proceedings. Here, we applied Evan's $4200 per month earning capacity to the sole guideline calculation but gave Mia credit for one additional child since Sage is not a child subject to this proceeding as set forth in Virginia Code Section 20-108.2 (C). From a mediation perspective, run the guidelines with and without using Evan's earning capacity. This allows for the parties an opportunity to work towards a middle ground between the two approaches.



Hypothetical 5: Supporting Harmony: A Soldier, a Peace Activist, and Child support?

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Supporting Harmony: A Soldier, a Peace Activist, and Child Support?

Emily and John have three children. Two children live with John and one child with Emily. John, a veteran receiving $3,500 per month in VA disability, has custody of their two teenage boys, Alex and Ben, who aspire to join the army. Meanwhile, Emily, a nurse, earning $6,666 per month, cares for their daughter Lily, a passionate peace activist. Emily pays $400 each month for their daughter Lily's daycare, aptly named “Harmony Haven Daycare.” The children are covered by Tricare insurance at no cost.

Split guideline



Income & Income Adjustments

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Hypothetical 1: Maintenance Mania: The Free Rent Riddle

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Maintenance Mania: The Free Rent Riddle

In the dim room, Nick's fate hung by a thread. VA disability deposited $2500, but the Post 9-11 GI Bill waltzed—$1750 for 8 months per year for school attendance. The hotel, a crumbling refuge, whispered secrets. In return for being the maintenance person, he secured free housing, which would have cost Nick $1250 per month.

What is Nick's gross monthly income?

Nick's total gross monthly income is $4916.67.

Answer



Hypothetical 2: Pell Grant, SNAP Peas, and Peril: Georgia's College Cafeteria Chronicles

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Pell Grant, SNAP Peas, and Peril: Georgia's College Cafeteria Chronicles

Georgia, a single mom, balances her college studies with work and family responsibilities. She receives a $7,350 Pell Grant to cover her educational expenses. Working 25 hours a week at the school cafeteria, she earns $12.50 per hour. Fortunately, she lives rent-free at her mother's house. Additionally, Georgia receives $430.00 in SNAP benefits.

What is Georgia's monthly gross income?

Georgia's financial scenario includes various components, some of which qualify as income for child support purposes while others do not. Her earnings from working 25 hours a week at the school cafeteria, paid at a rate of $12.50 per hour, total $312.50 weekly. To calculate her monthly income accurately, considering the average number of weeks per month (4.333), her monthly earnings from work amount to $1,353.54. Additionally, she receives a Pell Grant of $7,350 annually, which, when divided over 12 months, provides her with an additional $612.50 per month. Therefore, her total monthly gross income from these sources is $1,966.04. The $430 in SNAP benefits she receives monthly is not considered income for these calculations, as such benefits are specifically excluded from income calculations due to their purpose of addressing immediate food security needs and not representing disposable income. Moreover, Georgia lives rent-free at her mother's house; however, this benefit does not constitute income either, as there is no exchange of services for the free rent, and thus no upward adjustment is made to her income for this living arrangement.



Hypothetical 3: Gears, Guardianship, and Unsettled Debts: Roberto's Juggling Act

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Gears, Guardianship, and Unsettled Debts: Roberto's Juggling Act

Roberto, the seasoned bike mechanic, deftly balances wrenches and court orders. His $78,000 annual income keeps the wheels turning, but life isn't all downhill. Among his six children, two are involved in the present child support calculation. Elena and Carlos, two of his other children, grease-stained and pedal-powered, reside with him in his cozy home. Roberto faithfully pays $800 per month for his last two children, Filippo and Sophia. However, he owes his former wife, Isabella, $500 per month in spousal support—a rusty chain of unpaid support that stretches over a year. As Roberto tightens bolts and recalibrates life's derailleur, he wonders if there's a smoother path ahead. 🚲🌟

What is Roberto's monthly gross income?
Answer

Roberto's monthly gross income is $4,499.00

Roberto's Child Support Calculation: A Clear Breakdown

Roberto, with an annual salary of $78,000, earns a monthly gross income of $6,500. Here's how we arrive at $4,499.00

  1. Child Support for Elena and Carlos:
    • Roberto supports Elena and Carlos, who live with him.
    • We start by subtracting the $800 he pays for child support for Filippo and Sophia, his two other children. This reduces his gross income to $5,700.
    • Following the statutory schedule, we determine the downward adjustment specifically for Elena and Carlos based on only Roberto's gross income and the number of children (2).
    • Applying the correct adjustment of $1,201, Roberto's income adjusts to $4,499.
    • If we went to the statutory schedule to calculate Roberto's adjustment for Elena and Carlos before subtracting the $800 he pays for child support for Filippo and Sophia, we would get $1,267 monthly basic child support amount, which is incorrect because it fails to follow the normal process for calculating monthly basic child support.
  2. Spousal Support Consideration:
    • Roberto's failure to pay the court-ordered $500 spousal support means it cannot be deducted from his gross income.
    • Thus, his gross income remains at $4,499 for these calculations.

This structured approach ensures accuracy in reflecting each financial obligation, providing a precise basis for any further child support assessments.



Hypothetical 4: Navigating Child Support: Megan's Duplex Investment and Income Breakdown

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Navigating Child Support: Megan's Duplex Investment and Income Breakdown

Megan's Duplex Investment: A Clear Overview

Megan recently acquired a duplex for rental purposes. Here are the key details:

  1. Purchase Cost:
    • The duplex cost $300,000, which she financed.
  2. Monthly Payment:
    • Megan's monthly payment is $2,000.
    • Of this, $1,500 goes toward interest, and $500 reduces the principal balance.
  3. Property Upgrades:
    • To make the duplex presentable, Megan invested an additional $5,000 in improvements.
  4. Property Management:
    • Megan wisely hired a property management company to handle rentals.
    • They receive 5% of the annual rent, which totals $44,400.
  5. Annual Expenses:
    • Real estate taxes amount to $4,000 annually.
    • Megan claims $7,500 in depreciation each year.
    • Her homeowners insurance policy costs $2,750 annually.

In this intricate real estate dance, Megan balances income, expenses, and property value. 🏠💡

What is Megan's gross income?
Answer to Hypo 4

Note: If the $5000 maintenance cost is deductible: Total deductible expenses = $18,000 + $2,220 + $4,000 + $2,750 + $5,000 = $31,970. Net Rental Income = $44,400 - $31,970 = $12,430 // $1035.83 per month.

If the $5000 maintenance cost is not deductible: Total deductible expenses = $18,000 + $2,220 + $4,000 + $2,750 = $26,970. Net Rental Income = $44,400 - $26,970 = $17,430 // $1452.50 per month.

Megan incurred a $5,000 one-time cost to make the duplex presentable. This expenditure is crucial in determining whether it's a current operating expense or a capital improvement. If this cost is for repairs and routine maintenance required to make the property rentable, it would typically be deductible. However, if this cost represents improvements or renovations that increase the property's value, it would be classified as a capital expense and thus part of the acquisition costs, making it non-deductible under the statute.

Hypothetical 5: Wiring Finances: An Electrician's Child Support Journey

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Wiring Finances: An Electrician's Child Support Journey 👨‍🔧👩‍🎨

David, an electrician earning a monthly income of $4,500, grapples with financial strain, resulting in a $7,200 child support arrearage. To address this, he takes on a freelance graphic design gig, adding an extra $1,500 per month—specifically earmarked for reducing the arrearage. Meanwhile, his ex-wife, Isabella, receives $1,800 from Social Security Disability Insurance each month, along with $900 in derivative benefits for their children.

What are David and Isabella's monthly gross incomes?
David's monthly gross income is $4,500

David's monthly gross income from his primary job as an electrician is $4,500. The additional $1,500 he earns monthly from freelancing as a graphic designer should not be included in this gross income calculation for child support purposes, based on the specifics of his situation and the statutory guidelines.

Reason for Exclusion of Freelance Income:

The key reason for excluding the $1,500 from David's gross income calculation is its purpose. This income was specifically acquired to address and pay down a child support arrearage, and it was earned through secondary employment—factors that align with certain legal exemptions. According to the statute concerning child support calculations, income earned from secondary employment that is not originally part of the gross income and is obtained specifically to discharge a child support arrearage established by a court or administrative order should not be included in gross income. This is intended to ensure that such earnings are used as intended—to reduce existing arrears—without affecting the ongoing child support calculation, which could otherwise increase the parent's support obligation based on a temporarily elevated income level.

Isabella's monthly gross income is $2,700

Isabella's monthly gross income comprises both her disability benefits and the derivative benefits received for their children. Here's how it's calculated:

Social Security Disability Insurance (SSDI):

Isabella receives $1,800 per month from SSDI, which is considered part of her gross income. Disability benefits like SSDI are included in gross income calculations for child support because they represent regular, ongoing income that contributes to the recipient's financial capability.

Derivative Benefits for Children:

Additionally, Isabella receives $900 per month in derivative benefits for the children. According to statutory guidelines, when a parent receives disability insurance benefits that also generate derivative benefits for the children, these amounts are included in the parent's gross income. The rationale here is that these benefits, while designated for the children, directly augment the family's financial resources under the custodial parent's control and are, therefore, considered when calculating child support obligations.

There is a little more to Derivative benefits. If a parent's gross income includes derivative benefits, they are entitled to a credit against their ongoing basic child support obligation for those amounts. If the credit exceeds the parent's basic child support obligations, it can be used to reduce arrearages. However, this provision is irrelevant since Isabella is the custodial parent and does not owe child support.



Employment Income Scenario's

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Hypothetical 1: Paws and Shutter: Furry-tales Through the Lens

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Paws and Shutter: Furry-tales Through the Lens

John, our pet photographer, has found his niche at the whimsical “Fur-tography Gazette”—the go-to magazine for all things pet-related. From cat fashion shows to doggy detective stories, John captures it all. His motto? “Life's ruff, but it's also purrfectly hilarious!” His weekly paycheck from the magazine is a delightful $750. 📸

Calculate John's monthly gross income.
John's monthly gross income is $3250

Let's explore the two methods for calculating John's weekly income and how they translate to his monthly earnings. While the first method is a two-step process, the second method is only a one step process.

Long Method 1: Weekly to Monthly John earns a steady $750 per week as a pet photographer at the whimsical “Fur-tography Gazette.” Step one: Convert the $750 weekly earnings to annual earnings by multiplying weekly earnings by 52 for the number of weeks in a year (750 * 52 = $39,000); and Step two: Convert annual earnings to monthly earnings by dividing annual earnings by 12, the number of months in a year ($39,000/12 = $3250).

Short Method 2: Multiply the weekly earnings by 4.333 ($750 * 4.333 = 3249.75). Note: using 4.33 factor is not as accurate as using a factor of 4.333 or even 4.33333.

Hypothetical 2: The Child Support Latte Dilemma

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The Child Support Latte Dilemma ☕

In the cozy corner of “Bean Counters Café,” Mary, the talented barista, meticulously crafts latte art while juggling her $2750 bi-weekly earnings. Little did she know that her intricate coffee creations would become the focal point in a child support case. As lawyers debated the value of her lattes—each swirl and heart meticulously accounted for—the judge sipped thoughtfully, pondering whether a “Soul Café Custody Blend” could truly quantify child support.

Calculate Mary's monthly gross income.
Mary's monthly gross income is $5,958.33

Monthly Income Calculation for Child Support

Mary earns $2,750 bi-weekly.

There are 26 bi-weekly pay periods in a year (due to the 26-week cycle).

To find her monthly income:

  1. Calculate her annual income:
    • Annual income = Bi-weekly income x Number of bi-weekly pay periods in a year
    • Annual income = $2750 x 26 = $71,500
  2. Divide the annual income by 12 to get the monthly income:
    • Monthly income = Annual income ÷ 12 = $71,500 ÷ 12 = $5,958.33

Therefore, Mary's monthly employment income for child support purposes is $5,958.33.

Hypothetical 3: The Fertile Dilemma: Child Support in the Garden

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The Fertile Dilemma: Child Support in the Garden 🌱

In the whimsical world of garden designer Sarah, her sun-kissed cheeks and dirt-streaked overalls intersect with child support. In the courtroom of blooms, Judge Petalbottom presides over the case. The plaintiff, Mr. Sprout, accuses Sarah of withholding vital nutrients (and child support payments) from their shared fern-child. “Your Honor,” Mr. Sprout declares, “Sarah's monthly income is the key to our little sprout's future!” Sarah, flustered, adjusts her gardening gloves. “But Your Honor, I prune with love! And chlorophyll doesn't pay the bills.” The bailiff, a burly sunflower named Hank, leans in. “Order in the court! And Sarah, remember: photosynthesis won't buy diapers.” As the gavel falls, Judge Petalbottom calculates Sarah's seasonal monthly income for child support. Her hourly rate of $25 for 62 hours of work every semi-monthly pay period, from March 1 to October 31 (8 months), weave into the equation.

Calculate Sarah's monthly gross income.
Sarah's monthly gross income is $2,066.67
  1. Calculate her semi-monthly income:
    • Semi-monthly income = hourly rate x Number of hours worked in a semi-monthly pay period
    • Semi-monthly income = $25 x 62 = $1550
  2. Calculate the seasonal income for a month
    • Monthly income = Semi-monthly income x 2
    • Monthly income = $1550 x 2 = $3100
  3. Calculate the annual income based on the number of seasonal months
    • Annual income = Monthly income x Number of Months in the Season
    • Annual income = $3100 x 8 = $24,800
  4. Calculate the Monthly income by amortizing the annual income over 12 months
    • Monthly income = Annual income / 12 - the number of months in a year
    • Monthly Income = $24,800 / 12 = $2,066.67

Hypothetical 4: Mojitos and Math: Danny's Delightful Dilemma

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Mojitos and Math: Danny's Delightful Dilemma 🍹🌊💸

🍹🌊 Danny, the beach bartender, juggles piña coladas and child support calculations. His year-to-date earnings ($48,500) with his last pay period ending on August 15, 2024, blends summer vibes with winter blues. Stirring it all up, we serve “Danny's Delight”—a tropical smoothie of financial stability. Adjust for sand-in-shoes deductions, and voilà! Life's a beach, Danny—just watch out for financial riptides! 🌟💸

Calculate Danny's monthly gross income.
Danny's monthly gross income is $6,487.96

Calculation Steps:

  1. Number of days from and including January 1, 2024 through August 15, 2024: 228 days
  2. Day Count:Number of days: 31 (Jan) + 29 (Feb -leap year) + 31 (Mar) + 30 (Apr) + 31 (May) + 30 (Jun) + 31 (Jul) + 15 (Aug) = 228 days
  3. Per Diem Amount: $48,500 / 228 ≈ $212.72
  4. Annual Amount: $212.72 * 366 ≈ $77,855.52
  5. Monthly Income: $77,855.52 / 12 ≈ $6,487.96

Danny's monthly income based on his year-to-date earnings is approximately $6,487.96.

A leap year affects year-to-date calculations by adding an extra day, resulting in slightly different per diem and annual income amounts.


Hypothetical 5: Watt's Fair: Calculating Mac's Monthly Gross Income

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Watt's Fair: Calculating Mac's Monthly Gross Income 💡⚡

In the bustling halls of the battery factory, Mac's nimble fingers weave copper wires and connect terminals. As the lithium-ion cells hum, Mac calculates her monthly income— $32.00 per hour @ 40 hours per week from regular hours and an electrifying $8589 in overtime through May 5th of this leap year. But amidst the battery packs, she wonders: Will this charge be enough to power her child support obligations?

Calculate Mac's monthly gross income.
Mac's monthly gross income is $7,625.86

Regular Pay Calculation

Hourly Rate: $32

Hours per Week: 40

Weekly Regular Pay: $32 * 40 ≈ $1,280

Annual Regular Pay: $1,280 * 52 = $66,560

Monthly Regular Pay: $66,560 / 12 ≈ $5,546.67

Overtime Pay Calculation (Year-to-Date)

Year-to-Date Overtime Earnings: $8,589 (as of May 5)

Days from and including January 1, 2024 through May 5, 2024: 126 days

Day Count: Days from January 1 to May 5: 31 (January) + 29 (February-Leap year) + 31 (March) + 30 (April) + 5 (May) = 126 days

Per Diem Overtime Amount: $8,589 / 126 ≈ $68.17

Annual Overtime Amount: $68.17 * 366 ≈ $24,950.22

Monthly Overtime Amount: $24,933.22 / 12 ≈ $2,079.19

Total Monthly Income

Monthly Regular Pay: $5,546.67

Monthly Overtime Pay: $2,077.77

Total Monthly Income: $5,546.67 + $2,079.19 ≈ $7,625.86

Mac's total monthly income, including both regular and overtime pay, is approximately $7,625.86.

A leap year affects year-to-date calculations by adding an extra day, resulting in slightly different per diem and annual income amounts.


Social Security Scenario's

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Hypothetical 1: Leaves of Resilience: Nurturing Both Trees and Tots

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Leaves of Resilience: Nurturing Both Trees and Tots 🍂🌿

Jamie, a dedicated single parent, navigates life's complexities with unwavering resilience. Despite facing a disability, Jamie's spirit remains unyielding. You see, Jamie's impairment allows for light lawn work, a unique blend of determination and green-thumb magic. With $750 per month from Supplemental Security Income (SSI) and an additional $600 from Social Security Disability Insurance (SSDI), Jamie's financial stability takes root. But Jamie doesn't stop there—taking on various lawn jobs, Jamie earns an extra $550 each month. This diverse income dance ensures Jamie's child is well-supported, and the grass beneath Jamie's feet thrives.

Calculate Jamie's monthly gross income.
Jamie's Monthly Gross Income is $1,150

To determine Jamie's monthly gross income for child support purposes, we need to consider the applicable income sources. Jamie receives $750 per month from Supplemental Security Income (SSI), $600 from Social Security Disability Insurance (SSDI), and earns $550 from odd jobs. According to Virginia Code 20-108.2(C), SSI is explicitly excluded from being counted as gross income for child support purposes. However, SSDI and earnings from odd jobs are included. Therefore, Jamie's monthly gross income for child support is the sum of the SSDI and odd job earnings: $600 (SSDI) + $550 (odd jobs) = $1150. Thus, Jamie's monthly gross income for child support purposes is $1150.

Hypothetical 2: Ann and Anthony's Financial Braiding

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Ann and Anthony's Financial Braiding 💇‍♀️

In a quiet town, Anthony, a non-custodial parent, navigated fatherhood with unwavering tenacity. His $1800 monthly from Social Security Disability Insurance (SSDI) was more than dollars—it was resilience personified. Across town, Ann, a hairstylist, sculpted hair into stories. Her salon buzzed with laughter and transformation. As custodial parent to their two children, she balanced her $3500 hairstyling income with $750 she receives from Social Security for the children as part of Anthony's SSDI award. She pays out $350 per month for work-related daycare and $150 per month for the children's health insurance premiums.

How much does Anthony owe Ann in monthly child support?
Anthony's monthly support obligation is -0-
Answer to Hypo 2

Pursuant to the child support statute, the $750 SSDI derivative benefit reduces Anthony's support obligation to zero because it is considered a direct payment towards the child support. Anthony's initial support obligation is $557.64. The derivative benefit he provides is $750, which exceeds his required contribution. According to child support guidelines, when the non-custodial parent's derivative benefit is paid to the custodial parent, the non-custodial parent receives a dollar-for-dollar credit off his or her monthly child support obligation. Therefore, Anthony's obligation is reduced to zero since the derivative benefit fully satisfies and surpasses his monthly child support obligation.

Hypothetical 3: Disability Disco: Deloris's Groovy Child Support Moves

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Deloris's Groovy Child Support Moves. 🕺

Deloris, our resourceful single parent, juggles more numbers than a circus clown balancing flaming torches. She receives $3000 from Social Security Disability, $2500 from the Veteran's Administration for being 100% disabled and an extra $1500 as a derivative benefit for her kids. She is seeking child support from Bob, the children's father.

What is Deloris's monthly gross income?
Deloris's monthly gross income is $7,000

Deloris's monthly gross income for child support purposes is $7000. This includes $3000 from Social Security Disability Insurance (SSDI), $2500 from Veteran's Administration disability benefits, and $1500 in derivative benefits for her children. According to statutory rules, all these sources are included in the gross income calculation.

Social Security Disability derivative benefits are additional payments given to the children of a disabled parent receiving SSDI. These benefits, usually 50% of the parent's SSDI amount, support the children's financial needs, and are included in the parent's gross income for child support calculations.

Since Deloris is the custodial parent, she does not owe child support, but her total income is used to determine the financial resources available for the children's support. The derivative benefits, while included in her income, do not provide a credit against an obligation because she is not responsible for paying child support. Thus, her monthly gross income is $7000.

If Bob were receiving social security disability benefits and the children were receiving a $1500 derivative benefit from Bob's social security disability, the $1500 would be included in Bob's income but then the $1500 would be subtracted dollar-for-dollar from the child support Bob would owe. See Hypothetical 2 for an example.

Hypothetical 4:Derivative Dollars and Disability Drama

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Derivative Dollars and Disability Drama ♿️🎭

Once a prosperous entrepreneur, Frank now spirals through life with a disability, his business dreams replaced by bureaucratic hurdles. His monthly $3,500 from Social Security Disability Insurance (SSDI) is both a lifeline and a lament—a symphony of survival notes. But the crescendo of obligations echoes louder: $55,000 in child support arrears, a debt that clings like stubborn stardust.

Enter Frieda, the nurse with a heart as steady as her pulse monitor. She waltzes through her $8,500 monthly earnings, tending to patients and parenting their four children. But wait—the spotlight shifts. An encore! Frank's SSDI showers an extra $1,750 in derivative benefits upon Frieda's doorstep. These dollars, like secret harmonies, harmonize the family score.

And so, the curtain rises on Frank's plea: a child support review. Will the scales tip toward redemption or remain suspended in legal limbo? The courtroom awaits, where numbers twirl, and the judge conducts the final movement.

What is Frank's monthly child support obligation?
Frank's monthly support obligation is -0-
Answer to Hypo 4

In this scenario, Frank's monthly child support obligation is calculated based on his income share, which is 38.18% of the combined monthly gross income of $13,750. His calculated obligation is $972.06 per month. However, because Frieda receives a $1,750 derivative benefit from Frank's Social Security Disability Insurance (SSDI), this amount is credited against Frank's child support obligation.

Since the $1,750 derivative benefit exceeds Frank's monthly obligation of $972.06, Frank's child support obligation is reduced to $0. The excess amount of $777.94 ($1,750 - $972.06) represents additional funds received through the derivative benefit. While it is possible to use this excess to reduce Frank's $55,000 in child support arrears, it is not mandatory. The decision to apply this excess towards arrears can be made based on agreements between the parties involved or by judicial determination.


Hypothetical 5:Shared Skies: Navigating Disability and Child Support

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Shared Skies: Navigating Disability and Child Support windmill

Billy and Bretta share 50/50 custody of their two children after an amicable divorce. Bretta, who receives $4,000 in Social Security Disability benefits and a $2,000 derivative benefit for the children, focuses on managing her health and home life. Billy, earning $3,500 monthly as a mechanical engineer in the windmill industry, remains committed to providing for his kids.

Who owes the monthly support and what is the monthly obligation?
Bretta's monthly support obligation is $277.28
Answer to Hypo 5

Important Note

In a shared custody arrangement where Bretta, the non-custodial parent, receives a $2000 derivative benefit from Social Security for the children, there is a significant issue regarding whether she should receive a dollar-for-dollar credit off her $277.28 child support obligation to Billy. Common sense suggests that Bretta should not receive this credit because Billy did not receive any portion of the derivative benefit directly.

The policy behind the dollar-for-dollar credit is that it is intended as if Bretta paid Billy the amount out of her pocket. Granting Bretta this credit would be unjust to Billy, as it reduces her financial obligation without Billy receiving any of the derivative benefit, potentially compromising the children's best interests. Therefore, it is crucial to consult with the mediation coordinator or the court to determine the proper interpretation and application of the statutory guidelines in this situation.


Military Leave and Earning Statement Scenario's

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Hypothetical 1: Deploying Support: Military Moms' Gross Income Recon

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Deploying Support: Military Moms' Gross Income Recon 🎖️⚓

Susan Duffy, an E5 in the Navy, is stationed aboard a ship where she skillfully maintains and repairs jets. Balancing her demanding military career and parenting responsibilities, Susan shares custody of her two children with her ex-husband, John. Her monthly entitlements include a base pay of $3,848.70, a Basic Allowance for Housing (BAH) of $2,268.00, and a Basic Allowance for Subsistence (BAS) of $460.25.

Susan's monthly deductions consist of $305.01 for federal taxes, $238.62 for Social Security (FICA), $55.81 for Medicare (FICA), $32.13 for Tricare Dental, and a $500 child support allotment for another child. Her mid-month pay is $2,722.70.


LES

For child support purposes what is Susan Duffy's monthly gross income before any adjustments?
Susan's monthly gross income before any adjustments is $6,576.95

Susan Duffy's monthly gross income for child support purposes, before any adjustments, is calculated by adding her total monthly entitlements. These include her base pay of $3,848.70, Basic Allowance for Housing (BAH) of $2,268.00, and Basic Allowance for Subsistence (BAS) of $460.25. Summing these amounts, her total monthly gross income is $6,576.95. This figure represents her gross income before any adjustments are made for child support paid on behalf of other children.

Why are nontaxable allowances included as income for child support calculations?

Nontaxable allowances, such as Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS), are included as income for child support calculations because they provide financial resources that contribute to the servicemember's overall ability to support their children. While the IRS does not tax these allowances, child support guidelines consider all sources of income to ensure a fair and comprehensive assessment of the parent's financial capability, reflecting their true economic situation.

In the context of child support calculations, it is important to note that the child support statute does not explicitly exclude military allowances from being considered as part of the monthly gross income amount.

How should we address the $500 child support allotment, paid for another child?

It depends. If the entire $500 is for ongoing monthly child support and does not include a payment toward child support arrears, Susan's adjusted monthly gross income amount would be $6,076.95. If a portion of the $500 goes toward arrears, the monthly gross income should only be reduced by that portion of the $500 that reflects ongoing monthly child support. Do not adjust the monthly gross income amount for monthly child support arrears payments.

How to read Leave and Earning Statements

Hypothetical 2: Skydiving into Child Support: Navigating Free Fall Finances

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Skydiving into Child Support: Navigating Free Fall Finances 🪂🪖

Hank Armstrong, an E8 in the U.S. Army, has been faithfully serving since August 13, 2008. His current assignment places him at a military base where he serves as a parachute rigger and trainer. Amidst the complexities of divorce proceedings, Hank is actively navigating a child support assessment. He shares custody of his two children with his ex-spouse, Megan. Hank brought his LES to you.


LES

Calculate Hank's monthly gross income?
Hank's monthly gross income before any adjustments is $10,795.42 based on his year-to-date entitlements or $9,128.75 based on his current monthly entitlements.

The discrepancy of $1,666.67 is substantial and warrants further investigation. One possible explanation is that Hank may have received a lump sum bonus, which is not currently reflected in the monthly entitlement section. As a best practice, it's essential to compare the current monthly entitlements with the year-to-date entitlements.

Should the $2,499.00 Basic Allowance for Housing (BAH) entitlement be considered as part of the monthly gross income calculation, given that the same amount is deducted and paid to Lincoln Military Housing for housing costs in the Deduction Section?

Child support calculations serve the purpose of assessing a parent's capacity to provide for their children. Although the Basic Allowance for Housing (BAH) directly covers housing expenses by going to Lincoln Military Housing, it indirectly enhances the parent's ability to financially support their children. In Hank's case, the absence of out-of-pocket housing costs further strengthens his capacity to provide for his children

Hypothetical 3: Felix's Forgetfulness: Fumbling with Finances

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Felix's Forgetfulness: Fumbling with Finances 💸

Meet Forgetful Felix, an E3 in the Navy with slightly over three years of active duty, living off base in Norfolk, Virginia. Unfortunately, he left his Leave and Earnings Statement (LES) behind when meeting with his child's mother, Felicity, to calculate child support. Undeterred by this oversight, both Felix and Felicity remain resolute in proceeding with the calculation.

Calculate Felix's monthly gross income?

Felix's monthly gross income before any adjustments is $5,189.45.

Felix's Base Pay is $2680.20
LES

Looking at the Base Pay Chart for an E-3 with over three years of active duty, Felix's Base Pay is $2680.20.

Visit DFAS Pay Tables under Enlisted Members
Felix receives a Basic Allowance for Housing (BAH) of $1545.00 per month. This allowance is determined based on his residence in the 23501 zip code area and his having an E-3 pay grade.
BAH
Visit the Defense Management Office's Website under the Allowances Heading
Felix's Basic Allowance for Subsistence (BAS) is $460.25 per month.
LES Visit DFAS Pay Tables under BAS for more information.

Since Felix is enlisted and not an officer, he is entitled to a $460.25 Basic Allowance for Subsistence.


Hypothetical 4: Barracks Blues and Baby Bills

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Barracks Blues and Baby Bills 🙁💔👶

Allow me to introduce Private Betty Green, an E-3, who resides in the barracks. When calculating child support, Betty asserts that she does not receive Basic Allowance for Housing (BAH). However, the custodial parent disagrees. The question arises: Is Betty entitled to BAH?

Currently Betty is not entitled to Basic Allowance for Housing (BAH).

Betty already has housing in the barracks, the government has fufilled her housing needs. Providing BAH in addition would be unnecessary and contrary to the allowance's purpose.

The question arises: Is Betty entitled to BAH-Differential going forward?
However, if Betty is paying child support, she might be eligible for BAH-Differential (BAH-Diff). BAH-Diff is a housing allowance provided to servicemembers who pay child support but do not have physical custody of their children and live in government-provided housing at no charge. To qualify for BAH-Diff, the child support ordered amount must be equal to or greater than the BAH-Diff amount. To be eligible for BAH-Diff, Betty's child support ordered amount must be equal to or greater than $232.80 per month BAH-Diff.

LES

Visit Defense Travel Management Office website.

In the allowance section, click on non-locality rates under the heading Supplemental Documents.

Hypothetical 5: Battle Over Benefits: A Child Support Dispute

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Battle Over Benefits: A Child Support Dispute ⚔️🧒💰

Retired Army Master Sergeant Samuel Rodriguez faces off against Felicity Bennett over child support calculations. He submits his Retirement Account Statement to the Court. Samuel argues that the 10% VA waiver—non-taxable and not directly received from DFAS—shouldn't count as income. As for the $500 child support, he argues that his monthly gross income should be adjusted downward by $500 as it's earmarked for another child, not part of this case.

Felicity counters: The VA waiver, regardless of its source, is compensation and should be included. And Samuel's child support? Only $400 should be included as an income adjustment, considering $400 of the $500 is for ongoing child support and $100 is for the arrears owed.

What is Samuel's monthly gross income after any adjustments?
Retirement Account Statement
Samuel's monthly gross income after income adjustments is: $3,450.00

In accordance with Virginia Code § 20-108.20(C), both disability pay and veteran's benefits are considered income for child support calculations. Although the $350 VA waiver is non-taxable, it remains part of the income assessment due to its dual nature as disability pay and a veteran's benefit. Of the $500 allocated for child support adjustments, only $400 should be deducted from the monthly gross income—reflecting the ongoing child support obligation. The remaining $100 serves specifically for repaying child support arrears.

$3450.00 = $3500 monthly retirement pay + $350 VA waiver (disability pay) minus $400 monthly child support

How to read Retirement Account Statements


Self Employment Scenarios

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Hypothetical 1: From Rides to Receipts: Unraveling Child Support in the Gig Economy

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From Rides to Receipts: Unraveling Child Support in the Gig Economy 🚗🛒📱

Jamie, the multitasking parent, wears different hats throughout the day. First up, the Uber cap: annually, he pockets $10,000 from piecemeal Uber fares, sprinkle in $4,000 from appreciative passengers' tips, and snag $2,000 in bonuses. Now, let's switch to the DoorDash beret: there's a savory $6,000 annually from dashing around town, $2,400 in tips (because good service deserves a nod), and a petite $600 in bonuses. But wait, there's more! Jamie moonlights as a digital artist on Fiverr, where his monthly canvas yields a cool $1,200.

Of course, life isn't all income; expenses tiptoe in. Jamie's car requires $400 monthly for fuel and maintenance. Uber and DoorDash insurance adds another $150 monthly to the tab. Plus, there's a modest $15.00 spent per month on Uber supplies—the essentials for a smooth ride. Fiverr, being the creative hub it is, requires $100 per month for software subscriptions. Jamie also pays $75 monthly for his mobile phone for which it serves his business needs 50% of the time.

What is Jamie's monthly gross income for child support purposes?

Jamie's Income and Expenses

Category Income/Expense Annual Amount Monthly Amount
Uber Piecemeal Fares $10,000 $833.33
Tips $4,000 $333.33
Bonuses $2,000 $166.67
Total Uber Income $16,000 $1,333.33
DoorDash Piecemeal Earnings $6,000 $500.00
Tips $2,400 $200.00
Bonuses $600 $50.00
Total DoorDash Income $9,000 $750.00
Fiverr Monthly Earnings $1,200
Total Fiverr Income $1,200
Total Income $3,283.33
Expenses Fuel and Maintenance $400
Insurance (Uber and DoorDash) $150
Uber Supplies $15
Fiverr Software Subscriptions $100
Mobile Phone (50% business use) $37.50
Total Expenses $702.50

Summary

  • Total Monthly Income: $3,283.33
  • Total Monthly Expenses: $702.50
  • Total Monthly Adjusted Gross Income: $2580.83


Hypothetical 2: Crunching the Numbers: How Schedule C Shapes Child Support and Gross Income Calculations

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Crunching the Numbers: How Schedule C Shapes Child Support and Gross Income Calculations 💲🧮

Alex, a self-employed web developer, runs a thriving business, serving various clients throughout the year. His gross income for the year was $50,000. However, running a business comes with its costs. Alex paid $4000 in subcontractor fees, $1500 for software licenses, $1000 in hosting fees, and $500 for project-specific materials, totaling $7000 in cost of goods sold.

Customer satisfaction is paramount to Alex, which led him to refund $1800 to unsatisfied clients. He also incentivized early payments by offering discounts totaling $1200. Besides his primary income, Alex earned an additional $2000 in interest from a business savings account and received a $1800 business-related grant.

Alex's Part I Income - Schedule C

Description Amount
Gross Receipts or Sales (Line 1) $50,000
Returns and Allowances (Line 2) -$3,000
Cost of Goods Sold (Line 4) -$7,000
Other Income (Line 6) +$2,000
Total Gross Income (Line 7) $42,000

Alex's business expenses are meticulously detailed in Part II of his Schedule C. Instead of itemizing his vehicle expenses, Alex opted for the standard mileage deduction, accounting for 8,000 miles at a rate of $0.655 per mile. His utilities, which include his home internet connection and mobile phone bill, are also factored into his expenses. Alex and the mother have mutually agreed that 75% of these costs are work-related, with the remaining 25% allocated for personal use.

Alex's Part II Expenses - Schedule C

Description Amount
Advertising (Line 8) $2,400
Office Supplies (Line 18) $2,000
Internet and Utilities (Line 25) $1,800
Business Insurance (Line 15) $1,200
Legal and Professional Services (Line 17) $3,000
Software Subscriptions (Line 27a) $2,400
Meals (50% deductible) (Line 24b) $600
Vehicle Expenses (Standard Mileage Rate) (Line 9) $5,240
Total Annual Expenses $18,640

Calculate Alex's monthly gross income for child support purposes.

Alex's Monthly Gross Income After Deductions is $1984.17.

Description Annual Amount Monthly Amount
Gross Receipts or Sales $50,000 $4,166.67
Returns and Allowances -$3,000 -$250.00
Cost of Goods Sold -$7,000 -$583.33
Other Income $2,000 $166.67
Total Gross Income $42,000 $3,500.00
Advertising $2,400 $200.00
Office Supplies $2,000 $166.67
Internet and Utilities (75%) $1,350 $112.50
Business Insurance $1,200 $100.00
Legal and Professional Services $3,000 $250.00
Software Subscriptions $2,400 $200.00
Meals (50% deductible) $600 $50.00
Vehicle Expenses (Standard Mileage Rate) $5,240 $436.67
Total Annual Expenses $18,190 $1,515.84
Net Profit $23,810 $1,984.17

The parties may have issues as to the meals under the argument that everyone has to eat. Additionally, Alex is not providing actual costs for the vehicle but relying on a tax fiction by using the standard mileage rate. For child support purposes, this might be considered speculative. The Court may not find that Alex met his burden of proof for the vehicle expenses. The parties may wish to calculate only the gas expense as a compromise based on work-related miles of 8000 and Alex's vehicle's average miles per gallon of gas and the average cost per gallon of gas. If the average cost per gallon is $3.25 and Alex's vehicle's averages 30 miles per gallon, then his annual cost for gas would be $880.00 ($3.25/30 miles = .11 per mile: 8000 miles * .11 = $880.00 or $126.67 per month).


Hypothetical 3: Cutting Through the Numbers: A Barber's Guide to Schedule C and Child Support

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Cutting Through the Numbers: A Barber's Guide to Schedule C and Child Support💈

Taylor, a self-employed barber, earns her income from various sources. Annually, she makes $60,000 from providing haircuts, shaves, and other grooming services, and an additional $1,200 from selling hair care products. However, running her business also incurs expenses. She pays $12,000 annually for chair rent and $3,600 for supplies. Her advertising costs amount to $1,200 per year, and she spends $1,000 on business insurance. Legal and professional services cost her $500 annually, and she invests $600 in continuing education. She deducts $250 annually for business-related meals and spends $1,200 on laundry and cleaning. These details provide a comprehensive view of Taylor's financial situation.

Taylor's Schedule C

Part I - Income

Description Annual Amount
Gross Receipts or Sales (Line 1) $60,000
Returns and Allowances (Line 2) $0
Other Income (Line 6) $1,200 (Product Sales)
Total Gross Income (Line 7) $61,200

Part II - Expenses

Description Annual Amount
Rent for Chair (Line 20b) $12,000
Supplies (e.g., clippers, razors, products) (Line 22) $3,600
Advertising (Line 8) $1,200
Business Insurance (Line 15) $1,000
Legal and Professional Services (Line 17) $500
Continuing Education (Line 27a) $600
Meals (50% deductible) (Line 24b) $250
Laundry and Cleaning (Line 27b) $1,200
Total Annual Expenses $20,350

What is Taylor's monthly gross income after reasonable business deductions?

Monthly Adjusted Gross Income

Description Amount
Total Gross Income (Line 7) $61,200
Total Annual Expenses -$20,350
Net Profit/Annual Adjusted Gross Income (Line 31) $40,850
Monthly Net Profit/Monthly Adjusted Gross Income $3,404.17

$3,154.17 would also be a correct answer. The question becomes whether to have given a downward adjustment for the $250 meals. Is the $250 meals listed because it meets the criteria for a tax deduction or because the $250 meals is necessary for the operation of the business.


Hypothetical 4: A Cut Above: Taylor's Approach to Self-Employment Tax Deductions

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A Cut Above: Taylor's Approach to Self-Employment Tax Deductions

Taylor, a self-employed barber, earns $61,200 annually from services and product sales. With $20,350 in business expenses, Taylor's net profit is $40,850.

Calculate the monthly amount of adjustment for 1/2 of the self-employment tax, she pays to the IRS.

Form SE - Self-Employment Tax Calculation

Description Amount
Net Profit from Schedule C (Line 31) $40,850
Calculate 92.35% of Net Profit 0.9235 × 40,850 = $37,724.48
Self-Employment Tax Rate (15.3%) 0.153 × 37,724.48 = $5,773.84
Half of Self-Employment Tax (Deductible Portion) $2,886.92

Summary:
Taylor's self-employment tax is $5,773.84 for the year. The deductible portion, which is half of the self-employment tax, is $2,886.92.This equates to $240.58 per month adjustment to monthly grossly income. Assuming Taylor can provide proof that she paid the self-employment tax, she can deduct $240.58 from her monthly grossly income.

Why provide a 92.35% adjustment to the net earnings? The IRS allows a deduction for the employer-equivalent portion of the self-employment tax which equates to 7.65% deduction (100%-92.35% = 7.65%).



Imputing Income Scenarios

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Hypothetical 1: Buoyant Notes, Sinking Income: A Maritime Engineer's Ballad of Passion and Child Support

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Buoyant Notes, Sinking Income: A Maritime Engineer's Ballad of Passion and Child Support🎶🚢🎤

Julie was a maritime engineer working for Naval Sea Systems Command, earning $110,000 per year. She quit her job to follow her passion as a country singer, a career shift that significantly reduced her income. Julie now makes on average $1200 per month from one song that she wrote and produced, entitled "Calculating Care: The Beat of Virginia Child Support".

Should income be imputed to Julie?
If so, how much per month should be imputed to her as gross monthly income?

Step-by-Step Process:

Determine Voluntary Unemployment:

Julie's decision to leave her well-paying job as a maritime engineer to pursue a career in singing is considered voluntary unemployment. The change is based on personal preference rather than necessity or external circumstances.

Assessing Earning Capacity

Julie's previous annual income was $110,000 as a maritime engineer. This figure represents her earning potential based on her skills and experience in her previous profession.

Example Calculation
Description Amount
Annual Salary as Maritime Engineer $110,000
Monthly Imputed Income $110,000 ÷12 = $9,166.67

Hypothetical 2: Paychecks to Pretzels: A Child Support Story in Germany

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Paychecks to Pretzels: A Child Support Story in Germany

Jane, once a high-earning executive grossing $120,000 annually, chose to leave her job behind in the US. She moved to Germany, following her husband's military career and prioritizing their family's unity. Now, with four children in tow, two of whom are from her former marriage, she's seeking an increase in child support from her ex-husband.

Should income be imputed to Jane?
If so, how much per month should be imputed to her as gross monthly income?
Determine Voluntary Unemployment:

Voluntary Unemployment: Even if the move is due to a valid personal reason like a spouse's military transfer, the loss of employment is still considered voluntary.

Assessing Earning Capacity

Jane's previous annual income was $120,000 as a high-earning executive. This figure represents her earning potential based on her skills and experience in her previous profession. If there were no recent earnings available, look to the Bureau of Labor Statistics wage survey found in O*net web page for salaries for executives. Wage Survey

Example Calculation
Description Amount
Annual Salary as Executive $120,000
Monthly Imputed Income $120,000 ÷12 = $10,000

Hypothetical 3: From Coding to Courtroom: A Tale of Tech, Health, and Child Support

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From Coding to Courtroom: A Tale of Tech, Health, and Child Support⚕️💻

Tom, a 45-year-old software engineer, was earning $100,000 per year at a leading tech firm. Unfortunately, Tom was diagnosed with Multiple Sclerosis (MS), a debilitating disease that severely impacts his ability to work. Due to the progressive nature of his illness, Tom's doctor advised him that he is no longer able to work. Consequently, Tom was forced to quit his job as he could no longer meet the physical and mental demands of his role. Now, Tom is in court on a child support petition filed by the mother of his children, Lisa, who is requesting the court to impute his prior income.

Should income be imputed to Tom?
If so, how much per month should be imputed to her as gross monthly income?

Tom's situation exemplifies involuntary unemployment due to Multiple Sclerosis, as confirmed by his doctor's advice. Despite Lisa's request to impute his previous income of $100,000, the court, recognizing the medical evidence and the severity of his condition, would not impute his prior income for child support purposes. The judge would base the support calculations on Tom's current inability to work, ensuring a fair and just assessment of his financial responsibilities.

If Tom was receiving disability pay benefits, the court would include disability income as income for child support purposes, as long as the disability pay was not supplemental security income.


Hypothetical 4: Chillin' with Child Support: Mark's Cooling System

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Chillin' with Child Support: Mark's Cooling System❄️☀️

Mark, an unemployed individual, brings valuable employment skills to the table despite his recent lack of earnings. His background as an HVAC technician—where he excelled—speaks to his capabilities. However, personal reasons led him to leave that role a few years ago. Now, Mark faces a child support petition in court. Sarah, the mother of his child, seeks to impute an income for him based on his skills and earning potential.

Should income be imputed to Mark?
If so, how much per month should be imputed to her as gross monthly income?
Determine Voluntary Unemployment:

Voluntary Unemployment: Even if Mark quit HVAC for a valid personal reason, the loss of employment is still considered voluntary.

Assessing Earning Capacity

Since there are no recent earnings to impute, use the Bureau of Labor Statistics wage survey found in O*net web page for salaries for hvac technicians. The O*Net website provides comprehensive wage surveys and employment trends for various occupations, including HVAC technicians. Wage Survey

The average annual earnings for HVAC tech in Virginia is $58,110.00 which breaks down to $4,842.50 monthly. Also, O*Net provides income information on an hourly rate as well, which on average is $27.94 in Virginia. This allows for a calculation less than full time employment.


Hypothetical 5: From Couch to Courtroom: Alvin's Child Support Dilemma

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From Couch to Courtroom: Alvin's Child Support Dilemma🛋️

Alvin, a healthy 25-year-old who didn't complete high school, has had an irregular work history—never securing full-time employment. Presently, Alvin is without a stable home, relying on friends' couches for shelter. Alvin lives in a locality with very low employment rates. Now, facing a child support case, the court grapples with determining Alvin's appropriate income attribution for calculating support.

Should income be imputed to Alvins?
If so, how much per month should be imputed to her as gross monthly income?
Determine Voluntary Unemployment:

Given Alvin's ability to work and the need to ensure the child's financial stability, the court is likely to impute income to Alvin. Alvin's health plays a significant role in the court's decision to impute income. Since Alvin is healthy, the court will assume that he is physically capable of working and earning an income. The court will take into consideration his ability to find employment based on his physical and mental capacity, which, in Alvin's case, is not limited by any health issues.

Assessing Earning Capacity

Given Alvin's not having an employeable skill, the court most likely will impute minimum wage income. The analysis does not stop here. The court will then have to determine how many work hours a week to impute. Since Alvin resides in Virginia, the Court imputes $12.00 per hour - Virginia's current minimum wage. In addition, the court imputes Alvin's working 40 hours per week since the unemployment rate is low and the demand for workers is high.

Example Calculation

Description Amount
Occupation General Laborer (Full-Time)
Virginia Minimum Wage $12.00/hour
Weekly Imputed Income $480.00 (Weekly Imputed Income = $12.00 x 40)
Monthly Imputed Income $2,080.64 (Monthly Imputed Income = $480.00 (Weekly Imputed Income) x 4.333 (hours/week))


Healthcare & Child Support Scenarios

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Hypothetical 1: Brace Yourself: Sharing the Cost of Smiles

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Brace Yourself: Sharing the Cost of Smiles 🦷💰

John and Lisa share custody of their two children. John earns $60,000 annually, and Lisa earns $40,000. Their child needs braces costing $3,000, which is an unreimbursed medical expense.

How should the costs be shared, and what are the responsibilities of each parent?

In Virginia, child support obligations include the proportional sharing of unreimbursed medical and dental expenses for the child, as specified under Virginia Code § 20-108.2(D). These expenses are separate from the basic child support obligation calculated according to the guidelines and must be shared based on each parent's income shares.

Calculate Total Gross Income:

  • John's Income: $60,000
  • Lisa's Income: $40,000
  • Total Gross Income: $100,000

Determine Income Shares:

  • John's Share: \( \frac{60,000}{100,000} = 0.6 \) or 60%
  • Lisa's Share: \( \frac{40,000}{100,000} = 0.4 \) or 40%

Calculate Each Parent's Responsibility:

  • John's Responsibility: 60% of $3,000 = 0.6 times $3,000 = $1,800
  • Lisa's Responsibility: 40% of $3,000 = 0.4 times $3,000 = $1,200

Therefore, John is responsible for $1,800, and Lisa is responsible for $1,200 of the $3,000 braces bill.

Key Points

Income Shares: The costs are divided according to the parents' income shares, ensuring that each parent contributes fairly based on their financial capacity.

Separate from Child Support Calculation: These expenses are not included in the basic child support calculation and are additional obligations that parents must cover.

Conclusion

In this hypothetical, John and Lisa are required to share the cost of their child's braces based on their income shares, with John covering 60% and Lisa covering 40% of the expense. This approach ensures that the financial responsibility for necessary medical expenses is distributed fairly according to each parent's ability to pay, as outlined by Virginia law.

Hypothetical 2: Shared Stork Fees: How Emma and Mark Split the Costs

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Shared Stork Fees: How Emma and Mark Split the Costs 🤰👶💰

Emma and Mark share custody of their child, with Emma earning $50,000 annually and Mark earning $75,000. Five months after the child's birth, Emma filed for child support, having incurred $5,000 in medical expenses related to the pregnancy and delivery.

How should the costs be shared, and what are the responsibilities of each parent?

In this scenario, Emma and Mark share custody of their child. Emma earns $50,000 annually, while Mark earns $75,000. Emma incurred $5,000 in medical expenses related to the pregnancy and delivery. Five months later, Emma filed for child support. According to Virginia Code § 20-108.2(D1), these expenses are to be shared between the parents based on their respective income shares.

Total Gross Income:

  • Emma: $50,000
  • Mark: $75,000
  • Combined Income: $125,000

Income Shares:

  • Emma's Share: \(\frac{50,000}{125,000} = 0.4\) or 40%
  • Mark's Share: \(\frac{75,000}{125,000} = 0.6\) or 60%

Calculation of Each Parent's Responsibility:

  • Emma's Responsibility: 40% of $5,000 = $2,000
  • Mark's Responsibility: 60% of $5,000 = $3,000

Therefore, Emma is responsible for $2,000, and Mark is responsible for $3,000 of the total $5,000 in medical expenses. The division of costs ensures that both parents contribute proportionally to their income, providing a fair distribution of financial responsibilities.

What If Emma Filed the Support Petition a Year After Their Child's Birth?

If Emma had filed the support petition a year after the child's birth, the reimbursement for pregnancy and delivery expenses could be affected. Virginia Code § 20-108.2(D1) specifies that such expenses must be addressed in an initial child support proceeding commenced within six months of the child's birth, unless there is good cause shown or an agreement between the parties. Filing a year later may complicate the ability to claim these expenses as part of the child support order, as the court might consider the claim untimely unless Emma can demonstrate good cause for the delay or reach an agreement with Mark.

In such a case, if the court finds no good cause for the delay and no agreement is reached, Emma may not be able to recover these expenses through the child support order. This situation emphasizes the importance of timely filing for support to ensure all relevant expenses, including those for pregnancy and delivery, are addressed.


Hypothetical 3: Divvying Up the Healthcare Premiums: A Prescription for Fair Child Support

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Divvying Up the Healthcare Premiums: A Prescription for Fair Child Support ⚕️👩‍⚕️💰

Tom has a monthly family health insurance premium of $700, covering five people, including himself. If Tom were only getting coverage for himself, the cost would be $200. Among the five people covered, two are the children for whom support is being sought.

What is the cost attributed to the two children's monthly healthcare premium cost?

Details

  • Total Monthly Premium: $700
  • Individual Coverage Cost (Tom only): $200
  • Total Number of Covered Persons: 5
  • Number of Children Covered: 2

Calculation of Cost Per Child

1. Determine the Cost for Dependents:

Subtract the cost of individual coverage from the total family premium:

\( $700 - $200 = $500 \)

2. Calculate Cost Per Dependent:

Divide the remaining cost by the number of dependents (excluding Tom):

\( \frac{500}{4} = 125 \)

3. Calculate Cost for the Children in Question:

Multiply the per-dependent cost by the number of children:

\( 125 \times 2 = 250 \)

Summary

The monthly cost for the two children covered under Tom's family health insurance plan is $250. This $250 monthly cost is included in the child support calculation as part of the total child support obligation. This amount is added to other child support considerations, such as basic child support and work-related daycare costs, to determine the overall support amount. The cost per child is calculated by first finding the difference between the total family premium and the individual coverage, then dividing the remaining amount by the number of additional covered persons. This approach ensures that the health care coverage costs are fairly distributed and accurately reflected in the support obligation.


Hypothetical 4: Premium Guessing Game: Sarah's Missing Health Insurance Info

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Premium Guessing Game: Sarah's Missing Health Insurance Info 🙈🤔📝

Sarah is uncertain about the individual cost for her health insurance premiums. She and her three children, who are the subjects of the child support case, are covered under the same policy. The bi-weekly cost for the family health insurance premium is $175.

What is the cost attributed to the three children's monthly healthcare premium cost?

Details

  • Bi-weekly Family Premium: $175
  • Total Number of Covered Persons: 4 (Sarah + 3 children)
  • Number of Children Covered: 3

Calculation of Cost Per Child

1. Calculate Annual Premium:

Convert the bi-weekly premium to an annual premium, considering there are 26 pay periods in a year:

\( $175 \times 26 = $4,550 \)

2. Calculate Monthly Premium:

Convert the annual premium to a monthly premium:

\( \frac{4,550}{12} = 379.17 \)

3. Determining the Cost for Dependents:

Since Sarah does not know her individual cost, the usual method prescribed by Virginia Code Section 20-108.2 E is to subtract the cost of the individual's coverage from the total premium and then divide the remaining amount by the number of additional covered persons. However, this code does not specify what to do if the individual's cost is unknown. As a workaround, the family premium is divided evenly across all covered members:

\( \frac{379.17}{4} = 94.79 \) (per person per month)

4. Calculate Cost for the Children in Question:

Multiply the per-person cost by the number of children:

\( 94.79 \times 3 = 284.37 \)

Summary

The monthly cost attributable to the three children covered under Sarah's health insurance plan is $284.37. This $284.37 monthly cost is included in the child support calculation as part of the total child support obligation. This amount, along with other child support considerations such as basic child support and work-related daycare costs, contributes to the overall support amount.

In this scenario, because the individual cost for Sarah's coverage is unknown, the total premium is divided equally among all insured individuals to fairly apportion the cost attributable to the children. This method ensures that the health insurance costs are accurately reflected in the support obligation. However, it is important to note that the workaround used here may not perfectly align with the intended application of Virginia Code Section 20-108.2 E. The code emphasizes calculating the per-person cost by subtracting the cost of the individual coverage from the total premium, a step that requires knowing the individual's cost. This approach, while practical, could potentially result in an inaccurate reflection of the children's actual health insurance premium costs, either overestimating or underestimating the true cost, depending on the specific circumstances. Therefore, it is advisable to obtain accurate information on the cost of individual coverage whenever possible to ensure fair and accurate child support calculations.


Hypothetical 5: Over the Limit: Health Insurance and the Five Percent Rule

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Over the Limit: Health Insurance and the Five Percent Rule ⚠️🚫

Megan is the only parent with an available health insurance plan, and the cost for covering the children under this plan is $400 per month. Megan earns $40,000 annually, while Jake earns $80,000 annually.

Should the $400 monthly cost be included in calculating the child support, given the "reasonable cost" rule ?

Reasonable Cost Test

Definition and Application:

The reasonable cost test, as outlined in Virginia Code Section 63.2-1900, stipulates that health care coverage is considered reasonable if it does not exceed five percent of the responsible parent's gross income. For Megan, five percent of her annual income ($40,000) is $2,000, or approximately $167 per month. Since the $400 monthly premium exceeds this threshold, it raises the question of whether it is reasonable to include this full amount in the child support calculation.

Deviation from the Rule:

Despite the premium exceeding the five percent threshold, the court may choose to include the full $400 cost in the child support calculation if it is deemed necessary for the children's well-being. In cases where no alternative health care options are available and the current plan provides essential coverage, the court can exercise discretion to deviate from the reasonable cost rule. This is especially pertinent when the available coverage exceeds the cost deemed reasonable but remains the only option for ensuring the children's health needs are met. The parents also have the option to agree to use the full $400 cost or a lesser amount in the child support calculation.

Income Shares and Allocation of Costs

Income Shares:

  • Megan's Share: \( \frac{40,000}{120,000} = 0.33 \) or 33%
  • Jake's Share: \( \frac{80,000}{120,000} = 0.67 \) or 67%

Allocation of Costs:

Megan's Responsibility: 33% of $400 = $132

Jake's Responsibility: 67% of $400 = $268

Conclusion

The court's primary concern is the best interests of the children, which may justify including the full $400 health insurance premium in the child support obligation despite exceeding the five percent reasonable cost threshold. By allocating the costs according to the parents' income shares, neither Jake or Megan's financial responsibilities exceed 5% of their gross incomes. The court's discretion in this matter underscores the flexibility needed to address the unique circumstances of each case, always aiming to support the children's well-being.





Daycare & Child Support Scenarios

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Hypothetical 1: Revving Up Daycare Costs: The Price Tag of Child Support for Working Parents

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Revving Up Daycare Costs: The Price Tag of Child Support for Working Parents 🏎️🏁

Jane, a car saleswoman with a demanding schedule from 10:00 a.m. to 7:00 p.m., requires daycare for her child from 8:00 a.m. to 8:00 p.m., five days a week. She pays $400 weekly for this extended care, covering a total of 12 hours per day. Her ex-partner, John, initially questioned whether the daycare costs were excessive, but Jane provided documentation showing that the costs are standard for the extended hours and services provided, including meals and activities.

The court reviews the documentation and finds that the $400 weekly cost is reasonable given the extensive care required for Jane's work schedule, which often includes evening hours and flexibility to meet client needs.

Calculate Jane's Monthly Daycare Cost

1. Weekly Daycare Cost:

Jane's weekly daycare expense is $400.

2. Number of Weeks in a Month:

To convert weekly expenses into a monthly figure, the average number of weeks per month is used, approximately 4.333 weeks per month, derived from dividing 52 weeks in a year by 12 months (52 / 12 = 4.333).

3. Monthly Daycare Cost Calculation:

The monthly cost is calculated by multiplying the weekly cost by the average number of weeks per month:

Monthly Cost = Weekly Cost × 4.333

Substituting Jane's weekly expense:

Monthly Cost = 400 × 4.333

Monthly Cost ≈ 1733.20

Thus, Jane's monthly daycare cost is approximately $1,733.20. This figure represents the total cost of providing necessary childcare based on her extended work hours.

Conclusion:

The detailed calculation ensures that the child support amount accurately reflects the actual daycare expenses incurred by Jane. It also justifies the need for the extended daycare hours, considering Jane's work schedule as a car saleswoman, which requires flexibility and often late hours. The court's inclusion of this cost in the child support calculation ensures that Jane can maintain her employment while ensuring her child receives appropriate care.



Hypothetical 2: Talk Time and Tots: The Price of Daycare in the Cellular Sales World

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Talk Time and Tots: The Price of Daycare in the Cellular Sales World 📱🤳🌐

Mike works as a cellular sales representative for a mobile phone company. He pays $150 every two weeks for part-time daycare for his child, which is necessary due to his work schedule. The child attends daycare all year round, with Mike making bi-weekly payments for the services. He receives an annual $750 tax credit for these daycare expenses. Marcy, Mike's ex-partner, requests that the court take into account the tax savings in the child support calculation.

Calculate Mike's Monthly Daycare Cost

1. Bi-Weekly Daycare Cost:

Mike pays $150 every two weeks for the daycare services.

2. Annual Daycare Cost Calculation:

To find the total annual cost, multiply the bi-weekly payment by the number of bi-weekly periods in a year:

Annual Cost = 150 × 26 = 3900

There are 26 bi-weekly periods in a year (52 weeks / 2).

3. Monthly Daycare Cost Calculation:

To convert the annual cost into a monthly figure, divide the annual cost by 12:

Monthly Cost = 3900 ÷ 12 = 325

This figure represents the average monthly daycare cost before considering the tax credit.

Consideration of Tax Credit:

Mike receives an annual $750 tax credit for his daycare expenses, which needs to be factored into the calculation to reflect the actual financial burden.

Amortizing the Tax Credit:

To find the monthly impact of the tax credit, divide the annual credit by 12:

Monthly Tax Credit = 750 ÷ 12 = 62.50

Adjusted Monthly Cost Calculation:

Subtract the monthly tax credit from the initial monthly daycare cost to get the adjusted cost:

Adjusted Monthly Cost = 325 - 62.50 = 262.50

Conclusion:

Mike's adjusted monthly daycare cost, after accounting for the $750 tax credit, is $262.50. This adjusted amount reflects the effective out-of-pocket cost for daycare, considering the tax benefits Mike receives. The court should use this adjusted figure in the child support calculation to ensure that the financial responsibilities are fairly and accurately distributed, aligning with the actual costs and the financial realities faced by both parents. This detailed math calculation is crucial for ensuring an equitable child support arrangement that accurately represents the true expenses incurred.


Hypothetical 3: Bagging Groceries and Budgeting for Daycare: Child Support in the Aisle of Life

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Bagging Groceries and Budgeting for Daycare: Child Support in the Aisle of Life 🛒🍎👶

Sara, a grocery store manager, has two children requiring different daycare arrangements due to her demanding work schedule. Little Jimmie, her toddler, attends full-time daycare with semi-monthly payments of $425. Jamie, her 8-year-old daughter, attends before and after school daycare during the 42-week school year, with weekly payments of $75.

Calculate Sara's Monthly Daycare Cost

1. Daycare Cost for Little Jimmie:

Semi-Monthly Cost: Little Jimmie's daycare cost is $425 semi-monthly.

Monthly Cost Calculation:

There are two semi-monthly periods each month. Therefore, the total monthly cost is calculated by multiplying the semi-monthly payment by two:

Monthly Cost = 425 × 2 = 850

2. Daycare Cost for Jamie:

Weekly Cost: Jamie's daycare costs $75 per week.

Annual Cost Calculation:

Jamie attends daycare for 42 weeks annually. The total annual cost is calculated by multiplying the weekly payment by the number of weeks:

Annual Cost = 75 × 42 = 3150

Monthly Cost Calculation:

To convert the annual cost into a monthly figure, divide the annual cost by 12:

Monthly Cost = 3150 ÷ 12 = 262.50

Total Monthly Daycare Cost Calculation:

Combined Monthly Cost:

To find the total monthly cost for both children, add Little Jimmie's and Jamies monthly costs:

Combined Monthly Cost = 850 + 262.50 = 1112.50

Conclusion:

Sara's total monthly daycare cost for her two children, Little Jimmie and Jamie, is $1,112.50. This amount includes $850 for Little Jimmie's full-time daycare and $262.50 for Jamie's before and after school care. This total monthly cost is used in calculating the child support obligation, ensuring that Sara's actual daycare expenses are accurately reflected and covered.


Hypothetical 4: Rolling Out the Dough: How Daycare Costs Shape Child Support

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Rolling Out the Dough: How Daycare Costs Shape Child Support🧁🎂

Anna, an administrative assistant, and Ben, a baker, have two children. Anna earns a gross monthly income of $4,000, and Ben earns $6,000. The children require daycare services, with a weekly cost of $150, fully covered by Ben. Without considering the daycare cost, Ben owes $940 in monthly child support to Anna. The Judge decided to deviate from the presumptive amount and give Ben credit for the daycare cost.

What is Ben's monthly child support obligation after receiving credit for the daycare cost?

Detailed Answer for Hypothetical 4: Income Share and Daycare Cost Offset

Calculation of Income Share:

1. Combined Gross Income:

Anna's monthly income: $4,000

Ben's monthly income: $6,000

Combined Income = 4000 + 6000 = 10000

2. Income Share Percentage:

Anna's Share: 4000 / 10000 = 0.40 (40%)

Ben's Share: 6000 / 10000 = 0.60 (60%)

Calculation of Daycare Costs:

1. Weekly Daycare Cost:

$150 per week, paid by Ben.

2. Annual Daycare Cost:

Annual Cost = 150 × 52 = 7800

3. Monthly Daycare Cost:

Monthly Cost = 7800 ÷ 12 = 650

Determining the Offset for Ben's Payment:

Ben's Share of Daycare Costs:

Ben's share based on income percentage: 650 × 0.60 = 390

Anna's Share of Daycare Costs:

Anna's share: 650 × 0.40 = 260

Offset Calculation:

Ben pays the full $650 monthly daycare cost. Anna's share of this cost is $260, which serves as an offset against Ben's child support obligation. Therefore, Ben's original child support obligation of $940 is reduced by $260.

Final Child Support Obligation:

Original Child Support: $940

Daycare Cost Offset: $260

Adjusted Child Support: 940 - 260 = 680

Conclusion:

With the daycare cost offset, Ben's final monthly child support payment to Anna is $680. This adjustment reflects the daycare expenses Ben covers, ensuring the financial responsibilities are fairly distributed between the parents according to their income shares. This calculation acknowledges the actual expenses paid by each parent and aligns with their respective incomes.


Hypothetical 5: Winter's Chill, Summer's Bill: The Seasonal Cost of Child Support and Daycare

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Winter's Chill, Summer's Bill: The Seasonal Cost of Child Support and Daycare 😰😎

Megan, a graphic designer, has primary custody of her 9-year-old daughter, Emily, while David, a software engineer, has regular visitation. Megan covers all daycare expenses, including $100 weekly for after-school care for 36-weeks of the school year and $200 weekly for full-day care during the 12-week summer.

What is Megan's monthly cost for Emily's daycare?

Daycare Details:

  • School Year Daycare:
    • Duration: 36 weeks
    • Cost: $100 per week
  • Summer Daycare:
    • Duration: 12 weeks
    • Cost: $200 per week

Cost Calculations:

1. School Year Daycare Cost:

The total cost for the school year is calculated by multiplying the weekly cost by the number of weeks:

School Year Cost = 100 × 36 = 3600

2. Summer Daycare Cost:

The total cost for the summer is calculated similarly:

Summer Cost = 200 × 12 = 2400

3. Total Annual Daycare Cost:

The total annual daycare cost is the sum of the school year and summer costs:

Total Annual Cost = 3600 + 2400 = 6000

4. Monthly Daycare Cost:

To find the monthly cost, divide the total annual cost by 12:

Monthly Cost = 6000 ÷ 12 = 500

Conclusion:

Megan's total annual daycare expense for Emily is $6,000, averaging $500 per month. This includes the costs for both the school year and summer daycare programs. The court will use this monthly cost in determining child support obligations, ensuring a fair distribution of financial responsibilities between Megan and David, considering the varying daycare needs throughout the year. This comprehensive calculation provides a clear understanding of the expenses incurred for Emily's care, helping to establish a fair and accurate child support arrangement.



Tax Dependency Exemption & Child Support Scenarios

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Hypothetical 1: Order in the Court: Balancing Child Support and Dependency Exemptions

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Order in the Court: Balancing Child Support and Dependency Exemptions 👨‍⚖️👦⚽

Anna and Mike Smith are recently divorced, and they share joint custody of their 10-year-old son, Johnny. The court awarded Anna primary physical custody, while Mike has substantial visitation rights. The divorce decree included a specific provision that allows Mike to claim Johnny as a dependent for tax purposes every other year. This arrangement was made because Mike, who has a lower income than Anna, would benefit more from the tax relief provided by the Child Tax Credit and other related tax benefits. Additionally, the judge considered the fact that Mike has taken on a significant portion of Johnny's educational expenses, including private school tuition and extracurricular activities.

What actions must be taken by the parent's to allow Mike to claim Johnny as a dependent on his taxes?

To comply with the court's order, Anna must sign IRS Form 8332, "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent." This form officially transfers the right to claim Johnny as a dependent to Mike for the specified years. Anna must complete Part II of the form for each tax year she releases the claim. In Part II she would in specific detail provide that she agrees not to claim an exemption for their child, Johnny Smith, for the tax year 2025 and every other year thereafter (2027, 2029, etc.).

Sample 8332 completed

Anna must provide the signed Form 8332 to Mike so that he can attach it to his tax return for the years he claims Johnny as a dependent. This step is crucial, as the IRS requires the form to be submitted with the non-custodial parent's tax return to recognize the claim.


Hypothetical 2: Dependency Dynamics: Protecting Child Support with Exemption Conditions

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Dependency Dynamics: Protecting Child Support with Exemption Conditions 🛡️🦸‍♂️💰

Sarah and Alex share joint custody of their 8-year-old son, Ethan. Although Sarah is the custodial parent, she is open to allowing Alex to claim Ethan as a dependent on his taxes. This arrangement would provide Alex with valuable tax relief, potentially aiding in his financial contributions towards Ethan's needs. However, Sarah has reservations because Alex has occasionally been inconsistent with his monthly child support payments.

Concern: Sarah wants a safeguard in place in case Alex fails to make timely child support payments. She is willing to allow Alex to claim Ethan as a dependent only if he meets his financial obligations consistently.

How can Sarah's concern be addressed?

Conditional Clause in the Agreement: Sarah and Alex can include a conditional clause in their support agreement or court order specifying that the release of the dependency exemption is contingent upon Alex making timely child support payments. The clause should clearly state Sarah's conditions. For example, if Alex is thirty (30) days late or more in paying his child support, Sarah reserves the right to revoke the release of the dependency exemption.

Revocation of Release: If Alex fails to meet his child support obligations, Sarah can revoke the release of the dependency exemption by completing the relevant section of IRS Form 8332, specifically Part III—Revocation of Release of Claim to Exemption for Future Year(s). The revocation will take effect in the tax year following the year in which Alex receives a written notice of the revocation. For example, if Sarah sends the revocation notice in 2023, the revocation will apply starting from the tax year 2024. This timeline provides Alex with sufficient notice and ensures clarity for tax filing purposes.

Tips: Sarah must attach a copy of the revocation to her tax return for each year she claims the exemption as a result of the revocation. She must also keep for her records a copy of the revocation and evidence of delivery of the notice to Alex, or of reasonable efforts to provide actual notice.


Hypothetical 3: Lily's Ledger: How Divorced Parents Share Tax Benefits

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Lily's Ledger: How Divorced Parents Share Tax Benefits 🌾📒

James and Emily are divorced, and James is the custodial parent of their 7-year-old daughter, Lily. Emily and James have agreed that Emily will claim Lily as a dependent on her taxes every year, and James has signed IRS Form 8332 to release the dependency exemption to Emily.

What tax benefits will James and Emily be entitled to?

Tax Benefits for Emily (Non-Custodial Parent):

  • By claiming Lily as a dependent, Emily is eligible for the Child Tax Credit (CTC), which provides a tax credit per qualifying child. This credit directly reduces her tax liability and may also allow her to claim the Additional Child Tax Credit (ACTC), which can result in a refund even if she owes no tax.
  • Although the Dependency Exemption itself has been suspended under the Tax Cuts and Jobs Act of 2017 until 2025, Emily can still benefit from other related deductions and credits available to the parent claiming the child as a dependent.

Tax Benefits for James (Custodial Parent):

  • Despite releasing the dependency exemption, James retains significant tax benefits. He can still file as Head of Household, which offers a higher standard deduction and potentially lower tax rates compared to filing as a single individual. This filing status is available because Lily lives with James for more than half the year.
  • James is also eligible to claim the Earned Income Tax Credit (EITC), provided he meets the income requirements. The EITC is a valuable credit that can provide a refund even if no taxes are owed, thus offering substantial financial support.
  • Additionally, James can claim the Child and Dependent Care Credit if he incurs expenses for Lily's childcare that enable him to work or seek employment. This credit can cover a percentage of qualified expenses, providing financial relief for working parents.


Hypothetical 4: Claiming Clarity: Mediation's Role in Dependency Exemption Discussions

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Claiming Clarity: Mediation's Role in Dependency Exemption Discussions🤔🌟

Lisa and Mark are divorced and share custody of their two children, Jake and Emma. Lisa is the custodial parent, while Mark is the non-custodial parent. Both parents have been working amicably to ensure their children's well-being and are currently finalizing a new custody and financial agreement.

During a mediation session, Lisa and Mark are discussing the financial aspects of their agreement, including child support and tax considerations. Mark expresses interest in claiming Jake and Emma as dependents on his tax return for the upcoming year, as he believes it would provide significant tax relief. Lisa is willing to consider this, but she has concerns about how it might affect her own tax situation and the overall financial support for the children.

Request for Advice: Lisa and Mark ask the mediator for advice on the best way to handle the release of the dependency exemption. Specifically, they want to know:

  1. Whether it is more beneficial for Mark to claim the children as dependents, or if Lisa should continue to do so?
  2. What potential tax benefits Mark could receive?
  3. What would the impact on Lisa's eligibility for claiming tax benefits if she signed Form 8332 releasing the dependency exemption to Mark?

Mediator's Response:

With regards to Question 1: Consult a Tax Professional: The mediator advises both parents to consult with a qualified tax professional who can provide personalized advice based on their individual financial situations. This professional can help them understand the implications of releasing the dependency exemption, including the potential benefits and drawbacks for both parents.

With regards to Question 2: The mediator provides the parents with a copy of IRS Publication 4449, entitled, "Tax Information for Non-Custodial Parents" which indicates that if Lisa releases her right to claim the children on her tax return to Mark, Mark will be eligible to claim the child's dependency exemption (when available) and the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC). The mediator refers Mark to read IRS Publication 972 on the child tax credit for detailed information.

With regards to Question 3: The mediator refers Lisa to read IRS Publication 501 on the Exemptions, Standard Deduction, and Filing Information which indicates that Lisa will continue to be eligible for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit even if she releases the dependency exemption to Mark.

Hypothetical 5: Custody & Taxes: Navigating the 50/50 Split

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Custody & Taxes: Navigating the 50/50 Split

Rachel and David are divorced and have two children, Sophie and Ethan. The court has ordered a 50/50 custody arrangement, with the children spending an equal amount of time with each parent. Both parents share responsibilities equally, but they have not agreed on who will claim the children as dependents for tax purposes.

Which parent gets to claim the children as dependents on their tax return?
Application of IRS Tiebreaker Rules:

According to IRS tiebreaker rules, when parents share equal custody of the children, the parent with the higher Adjusted Gross Income (AGI) is generally entitled to claim the children as dependents if they cannot reach an agreement. See Publication 501, Dependents, Standard Deduction, and Filing Information. Here, Rachel has a higher AGI, and she is entitled to claim the children as dependents.

However, Rachel and David could still mutually agree to allocate the tax benefits differently, such as alternating who claims the children each year or splitting the children between them for tax purposes. Any such agreement should be documented and, if necessary, supported by IRS Form 8332 to ensure proper compliance. Consulting with a tax professional would also be advisable to understand the full implications and to optimize their tax situations.



Complex Guideline Combo's

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Hypothetical 1: The Epic Pet Showdown

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The Epic Pet Showdown 🐶✌️🐱

John and Lisa have three children. John, a dog trainer earning $6,000 per month, and Lisa, a vet technician specializing in cats with a monthly income of $3,000, have carefully structured their lives around their work and kids. Their oldest, Ella, is a dedicated gymnast who "does the splits" not just on the mat but in her life, spending 210 days with John to stay close to her gymnastics training. The second child, Mia, spends 170 days with Lisa, whose home is conveniently located near her school. The youngest, Sam, is caught in the ultimate animal rivalry—he splits his time evenly between both parents because he loves the dogs at his dad's house and the cats at his mom's house, who are sworn nemeses in a never-ending battle of barks and hisses.

Which guideline should Lisa and John use, and what is the child support obligation?

We use the Multiple-Shared Guidelines because each parent has each child for over 90 days, putting them in a shared custody arrangement. Since neither parent has sole custody of any child, Sole-Shared and Split-Shared custody arrangements don't apply. The children's varying day counts mean the standard Shared Custody Guidelines wouldn't work either. The Multiple-Shared Guidelines address these differences, ensuring a fair calculation by averaging custody shares and determining each parent's financial responsibility accurately.


Complex Scenario 1 Answer

John owes Lisa child support even though his day count (custody share) is higher because child support isn't solely based on the number of days each parent has the children. It's also heavily influenced by each parent's income share. John has a higher income, earning $6,000 per month compared to Lisa's $3,000. Even though John spends more time with the children, his higher income means he has a greater financial responsibility. The child support calculation balances the time spent with the children and the income disparity, leading to John owing Lisa despite having more custody days.


Hypothetical 2: Wired for Success: Navigating Autism and Custody in a Digital Age

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Wired for Success: Navigating Autism and Custody in a Digital Age 💻🧩

Sarah and Tom have two children. Their son, Max, has autism, which requires specialized care and support, but he's also a whiz with computers, coding his own apps at just 10 years old. Max lives full-time with Sarah, who is a software engineer earning $7,000 per month. Their daughter, Lily, splits her time equally between both parents. Tom is a graphic designer with a monthly income of $4,500.

Question: Which guideline should they use, and what is the child support obligation?

We use the Sole-Shared Guidelines because while both parents have Lily for more than 90 days a year in a shared custody arrangement, Tom does not have Max for more than 90 days, placing Max in a sole custody arrangement with Sarah. Multiple-Shared doesn't apply since only Lily is in shared custody, and Split-Shared requires at least three children with each parent having sole custody of one child and their sharing custody of the third child, which isn't the case here.

Complex Scenario 1 Answer

The process involves calculating the monthly basic child support obligation based on the parents' combined income from the schedule, determining the per child amount, and multiplying the monthly basic child support's pro rata share for Max (sole custody) by Tom's income share to arrive at Tom's monthly support obligation for Max.

For Lily, who is in a shared custody arrangement, the shared support need is calculated by multiplying the shared custody pro rata share of the monthly basic child support amount by 1.4. This shared support need is then multiplied by each parent's custody share to reflect the costs each parent incurs while Lily is with them. Tom reimburses Sarah for the cost she incurred while Lily is with her and Sarah reimburses Tom for the cost he expended while Lily is with him. Finally, the income share is applied to determine each parent's financial obligation. After netting the obligations, Tom pays Sarah $208.16 per month.



Hypothetical 3: Custody Choreography: When Kids' Schedules Define Parenting

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Custody Choreography: When Kids' Schedules Define Parenting 🤺🏓💃🥋👊

David and Rose have five children. David, a high school teacher earning $4,800 per month, has sole custody of Ethan, 16, and Liam, 12, due to their proximity to his home for fencing and ping pong activities. Rose, a project manager earning $6,200 per month, has sole custody of Sophia, 14, who lives with her full-time for karate training. They share custody of Olivia, 10, and Aiden, 8, with both children spending 245 days a year with Rose due to ballet practices and school commitments.

Question: Which guideline should they use, and what is the child support obligation?

The Split-Shared Custody guideline is used here because it accommodates the combination of sole and shared custody arrangements across multiple children. David has sole custody of Ethan and Liam, while Rose has sole custody of Sophia, meaning each parent has more than 274.5 days with these children, defining them as sole custody arrangements. Olivia and Aiden are in shared custody, spending more than 90 days with each parent. The split custody guideline alone wouldn't work because it doesn't account for the shared custody component. The split-shared guideline ensures accurate financial obligations by balancing both sole and shared custody scenarios.

Answer to Scenario 3

Rose owes David $191.25 per month for child support. This amount is calculated by comparing the financial obligations each parent has based on their income share and the custody arrangements. Rose owes David for her pro rata share of Ethan and Liam's expenses, as they are in David's sole custody. Additionally, she owes for her share of the costs for Olivia and Aiden, who are in a shared custody arrangement. On the other hand, David has an obligation to Rose for Sophia, who is in Rose's sole custody, as well as his share of the expenses for Olivia and Aiden. However, when all these amounts are netted, Rose's total obligation exceeds David's, resulting in her owing David $191.25 per month.


Hypothetical 4: Army Discipline Meets Family Therapy: Custody Solutions for Six

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Army Discipline Meets Family Therapy: Custody Solutions for Six 🪖🏡

Latoya and Tye have six children. Latoya, an Army officer earning $125,000 per year, and Tye, a therapist earning $98,000 per year, have a complex custody arrangement. Tye has sole custody of two of the children, who live with him full-time because they attend a specialized school near his home that caters to their specific learning needs. The remaining four children are in a shared custody arrangement, spending 125 days with Latoya due to her demanding military schedule and 240 days with Tye, who provides more day-to-day stability. Tye also pays $1,250 per month for daycare and $275 per month for the children's health insurance.

Which guideline should they use, and what is the child support obligation?

We are using the Sole-Shared Custody Guideline because of the specific custody arrangement between Latoya and Tye. Tye has sole custody of two of the children, meaning he has them for more than 274 days per year, which qualifies as a sole custody arrangement. These children reside primarily with Tye, and Latoya has little to no custodial time with them.

For the remaining four children, they are in a shared custody arrangement, as they spend 125 days with Latoya and 240 days with Tye. Since both parents have the children for more than 90 days but less than 275 days, this qualifies as a shared custody arrangement.

Given the combination of these custody arrangements, the Sole-Shared Custody Guideline is used. This guideline ensures that child support is calculated accurately, reflecting the different custody arrangements and the responsibilities of each parent, based on both the time the children spend with each parent and their respective income shares.

Answer to Question 4

The Sole-Shared Custody Guideline calculation process involves determining the monthly basic child support obligation from the statutory schedule, calculating the per child amount, and then determining the pro rata share for the children in sole custody and those in shared custody.

For the two children in Tye's sole custody, Latoya's obligation is calculated by multiplying the pro rata share for sole custody ($1,187.24) by her income share (56.05%), resulting in $665.45. For the four children in shared custody, the shared support need is adjusted with a 1.4 multiplier, and the obligations are calculated based on each parent's income and custody shares. After accounting for daycare and health insurance costs, Latoya owes Tye a total of $2,253.65 per month.


Hypothetical 5: Frustration on Four Wheels: The Kids' Ride to Dad's

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Frustration on Four Wheels: The Kids' Ride to Dad's 😩🚗

Jasmine and Ryan have four children. Jasmine, who earns $7,500 per month as a nurse, and Ryan, who earns $6,800 per month as a software developer, have a complex custody arrangement. Their oldest child, Ethan, spends 230 days with Jasmine and 135 days with Ryan. Their second child, Lily, spends 182.5 days with each parent equally. The third child, Noah, spends 95 days with Jasmine and 270 days with Ryan, while the youngest, Ava, spends 120 days with Jasmine and 245 days with Ryan. Jasmine also pays $300 per month for the children's health insurance premium, and Ryan pays $900 per month for daycare expenses.

Which guideline should they use, and what is the child support obligation?

The Multiple-Shared Custody Guideline is the appropriate choice for this scenario because all four children are in shared custody arrangements with varying day counts. Since each child spends more than 90 days with each parent but not uniformly, the standard shared custody guideline doesn't apply. The Multiple-Shared Custody Guideline allows for averaging the custody shares across all children, ensuring a fair distribution of financial responsibility based on the actual time each child spends with each parent and their income shares.

Answer to Scenario 5

For the daycare and healthcare costs, the principle is that each parent reimburses the other based on their income share for the costs expended. Jasmine owes Ryan $472.05 for her share of the daycare costs he paid, and Ryan owes Jasmine $142.65 for his share of the healthcare costs she paid. After netting these amounts, Jasmine's reimbursement to Ryan is $329.40. Combined with the support obligation, Jasmine owes Ryan a total of $676.76 per month.




Common Questions (Click on headings to see details)

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Child Support Agreement Contents

What should be contained in a child support agreements?

Child Support Amount:

  • The monthly amount of child support the parties agree to. The child support guideline worksheet should be attached to the agreement.
  • The effective date of the child support order. For initial support petitions, the effective date is the date the petition is filed in court. For modifications, the effective date is the date the nonrequesting party is served with the motion. Note: parties can agree upon an alternative effective date. Modification Example: When the noncustodial parent files a motion to reduce child support, the date on which the custodial parent is served with the motion is the effective date. The custodial parent's return of service is stored in the court's file.
  • The payment due date. The statute requires that the child support payments are due on the 1st of every month; however, the parties can agree upon a different payment intervals, such as semi-monthly (twice per month), or bi-weekly (every other week). Example: $500 shall be paid on the 1st of every month beginning December 1 2024. Payments may be made in intervals of $250 on the 1st and 15th of every month.

Payment Method:

  • The mediated agreement should state whether the payment goes directly to the custodial parent or paid to the Virginia Division of Child Support Enforcement (DCSE). For the payment to be made to DCSE, the parties must have an open case with DCSE; otherwise, the payment must be made directly to the custodial parent. If payments are made to DCSE, the agreement should state the payments should be made payable to the Treasurer of Virginia and include the noncustodial parent's full name and complete social security number. The check or money order should be sent to Treasurer of Virginia - Payments, P.O. Box 28990, Richmond, Virginia 23228-8990. DCSE provides other payment methods for the noncustodial parent Cick Here for DCSE Payment Methods.
  • In addition to stating whether the payments should be paid directly to the custodial parent or DCSE, the mediated agreement should state whether the payment is to be made by wage withholding, alotment, paid directly by the noncustodial parent, or by someother payment method. Virginia law requires the payment to be made by wage withholding unless otherwise agreed to by the parties. There are two types of wage withholdings, Court Issued wage withholdings and DCSE administrative wage withholdings. If the parties have an open case with DCSE, then it is a DCSE administrative issued wage withholding. Otherwise, its a court ordered wage withholding. If the parties pursue a wage withholding, the noncustodial parent's employer information should be contained in the agreement so that either the court or the DCSE has information to issue the wage withholding. If it is a court issued wage withholding, the parties should speak to the clerk of the court on processing the wage withholding. Note: all wage withholdings, either court ordered or DCSE issued are paid to DCSE and DCSE distributes the funds to the custodial parent. Consequently, it is recommended to have the parties full name and addresses contained in the agreement so that DCSE has information to distribute the funds to the custodial parent. In DCSE talk, a court issued wage withholding is referred to as a passthrough case.

Arrearage information:

  • The mediated agreement should state the arrearage amount as of a specific date; if the arrears date is omitted, this may cause problems down the road. If the arrears date is left out, DCSE will set the arrears as of the date the mediated order was signed by the judge. Example: The parties agree that Ms. Jones owes Ms. Flowers $7500 in child support arrears through October 31, 2024. In the agreement state that Ms. Jones owes Ms. Flowers child support arrears in the amount of $7500 as of October 31, 2024.
  • If the mediated agreement addresses both child and spousal support, the arrears for each should be set forth separately.
  • The mediated agreement should state whether the arrears amount is inclusive of interest or not. If it is inclusive of interest, it is best practice to state the principal arrears amount and the interest amount separately in the mediated agreement. Example: The $7500 Ms. Jones owes Ms. Flowers in child support arrears is broken down into $7000 in principal arrears and $500 in interest. Insert in the agreement that Ms. Jones owes Ms. Flowers principal child support arrears in the amount of $7000 and interest in the amount of $500 for a total of $7500 as of October 31, 2024.
  • The mediated agreement should state how the arrears are to be paid. If the arrears are to be paid in installments, the mediator should clearly state the payment schedule and the amount of each installment. Example 1. The parties agree Ms. Jones shall pay Ms. Flowers the $7500 in 60 days of the date Ms. Jones signs the mediated agreement, which is on November 30, 2024. The agreement should reflect that Ms. Jones shall pay Ms. Flowers the $7500 child support arrears by no later than February 2, 2025. This repayment of child support arrears is in addition to the regular monthly child support payments set forth in this agreement. Example 2. The parties agree Ms. Jones shall pay Ms. Flowers the $7500 in monthly installments of $250.00 which is in addition to the $500 ongoing monthly child support, beginning December 2024. The agreement should reflect that Ms. Jones shall pay Ms. Flowers the $7500 child support arrears at a monthly rate of $250 per month due on the first of the month, beginning December 1, 2024 and paid on the first of each month until the child support arrearage is paid in full. The total monthly support due is $750 ($500 current monthly child support plus $250 monthly child support arrears).
  • Virginia law requires that all support orders should contain a notice that if any arrearages for child support, including interest or fees, exist at the time the youngest child included in the order emancipates, payments shall continue in the total amount due (current support plus amount applied toward arrearages) at the time of emancipation until all arrearages are paid in full. In the example above, Ms. Jones would continue to pay $750 per month even after on going child support terminates until the arrears are paid in full. The beauty of mediation allows the parties to deviate from this requirement. Example: Ms. Jones and Ms. Flowers agreement sets forth that once the $500 per month ongoing child support terminates, Ms. Jones shall repay Ms. Flowers $350 per month until the arrears are paid in full.

Health Insurance Information:

  • The mediated agreement should state who is covering the child(ren) on health insurance and provide the name of the health insurance carrier.
  • If the parties have dental and vision insurance for the children, this should be stated in the agreement.
  • Unreimbursed medical costs, including co-pays, cost for braces and eye glasses, etc... should be addressed in the agreement. Unless the parties agree otherwise, the parties split these costs in proportion to their income shares as set out in the child support guideline. Example: if mom makes 60% of the combined gross income and Dad makes 40% of the combined gross income, mom would be responsible for 60% of the unreimbursed medical costs and Dad would be responsible for 40% of the unreimbursed medical costs.

Obligations to Notify: When and Whom to Inform About Changes in Circumstances?

Change in Addresses/Telephone Numbers:

  • Virginia law mandates that all child support orders include a notice requiring parties to inform the court in writing of any new address at least 30 days prior to the effective date of the change.
  • Virginia law also requires all child support orders to include a notice mandating that parties provide written notification to each other of any address change at least 30 days before it takes effect, unless good cause is demonstrated. In this context, "good cause" is typically determined when there is evidence of domestic violence between the parties.
  • Virginia law further requires that all child support orders include a notice that if DCSE is involved, DCSE is also to be provided written notice of the change of address at least 30 days prior to the effective date of the change.
  • Virginia law requires that all child support orders include a notice that the parties shall provide written notice of any change in telephone number at least 30 days after the change to the court, the other party and to DCSE.
  • Example: Notice Requirements

    Parties must provide written notice:

    1. To the court: At least 30 days before any proposed change to their residential or mailing address and within 30 days after any telephone number change.
    2. To each other: At least 30 days before any change to their residential or mailing address and within 30 days after any telephone number change.
    3. To DCSE: At least 30 days before any proposed change to their residential or mailing address and within 30 days after any telephone number change.

Change in employment:

  • Virginia law requires that all child support orders include a notice that if child support payments are made through the Department of Social Services, the non-custodial parent must keep the Department informed. If payments are made directly to the custodial parent, the non-custodial parent must keep the court informed. This includes:
    1. The name, address, and phone number of their current employer.
    2. Any changes in their employment status.
    3. Whether they have filed for or are receiving benefits from unemployment insurance.
  • Why is this required? Unless the parties agree otherwise, either a court ordered wage withholding or a DCSE administrative wage withholding is required. Without updated employment information, neither the court nor DCSE can issue a wage withholding order to the non-custodial parent's current employer.
  • The notice does not require either party to notify the other party of changes in employment.
  • Lets be clear, the notice requirement does not require the custodial parent to notify anyone of any change of employment.
  • The parties can insert into the agreement that they shall notify one another of any change of employment. Why, this might trigger a motion to amend the child support.

Virginia Code Section 20-60.3 (Notice Requirements for all Child Support Orders):

  • Virginia Code § 20-60.3 outlines the mandatory components of child and spousal support orders. It includes provisions for income withholding, notice requirements for address and employment changes, health care coverage, arrearages, and support modifications. Additionally, it addresses obligations for parties to notify the court, other parties, or the Department of Social Services about significant changes, with exceptions for cases involving domestic violence or good cause.
  • List of components found in Virginia Code § 20-60.3:
    • Income withholding 1. Notice that support payments may be withheld as they become due pursuant to § 20-79.1 or § 20-79.2, from income as defined in § 63.2-1900, without further amendments of this order or having to file an application for services with the Department of Social Services; however, absence of such notice in an order entered prior to July 1, 1988, shall not bar withholding of support payments pursuant to § 20-79.1;
      2. Notice that support payments may be withheld pursuant to Chapter 19 (§ 63.2-1900 et seq.) of Title 63.2 without further amendments to the order upon application for services with the Department of Social Services; however, absence of such notice in an order entered prior to July 1, 1988, shall not bar withholding of support payments pursuant to Chapter 19 (§ 63.2-1900 et seq.) of Title 63.2;
    • Child's identifying information3. The name, date of birth, and last four digits of the social security number of each child to whom a duty of support is then owed by the parent;
    • Parent's identifying / employment information4. If known, the name, date of birth, and last four digits of the social security number of each parent of the child and, unless otherwise ordered, each parent's residential and, if different, mailing address, residential and employer telephone number, and number appearing on a driver's license or other document issued under Chapter 3 (§ 46.2-300 et seq.) of Title 46.2 or the comparable law of another jurisdiction, and the name and address of each parent's employer; however, when a protective order has been issued or the court otherwise finds reason to believe that a party is at risk of physical or emotional harm from the other party, information other than the name of the party at risk shall not be included in the order;
    • Support continuation conditions5. Notice that, pursuant to § 20-124.2, support will continue to be paid for any child over the age of 18 who is (i) a full-time high school student, (ii) not self-supporting, and (iii) living in the home of the party seeking or receiving child support until such child reaches the age of 19 or graduates from high school, whichever occurs first, and that the court may also order that support be paid or continue to be paid for any child over the age of 18 who is (a) severely and permanently mentally or physically disabled, and such disability existed prior to the child reaching the age of 18 or the age of 19 if the child met the requirements of clauses (i), (ii), and (iii); (b) unable to live independently and support himself; and (c) residing in the home of the parent seeking or receiving child support;
    • Vocational & recreational license suspension warnings6. On and after July 1, 1994, notice that a petition may be filed for suspension of any license, certificate, registration or other authorization to engage in a profession, trade, business, occupation, or recreational activity issued by the Commonwealth to a parent as provided in § 63.2-1937 upon a delinquency for a period of 90 days or more or in an amount of $5,000 or more. The order shall indicate whether either or both parents currently hold such an authorization and, if so, the type of authorization held;
    • Effective date7. The monthly amount of support and the effective date of the order. In proceedings on initial petitions, the effective date shall be the date of filing of the petition; in modification proceedings, the effective date may be the date of notice to the responding party. The first monthly payment shall be due on the first day of the month following the hearing date and on the first day of each month thereafter. In addition, an amount shall be assessed for any full and partial months between the effective date of the order and the date that the first monthly payment is due. The assessment for the initial partial month shall be prorated from the effective date through the end of that month, based on the current monthly obligation;
    • Healthcare & unreimbursed medical costs8. a. An order for health care coverage, including the health insurance policy information, for dependent children pursuant to §§ 20-108.1 and 20-108.2 if available at reasonable cost as defined in § 63.2-1900, or a written statement that health care coverage is not available at a reasonable cost as defined in such section, and a statement as to whether there is an order for health care coverage for a spouse or former spouse; and
      b. A statement as to whether cash medical support, as defined in § 63.2-1900, is to be paid by or reimbursed to a party pursuant to subsections D and G of § 20-108.2, and if such expenses are ordered, then the provisions governing how such payment is to be made;
    • Support arrearages details9. a. If support arrearages exist, (i) to whom an arrearage is owed and the amount of the arrearage, (ii) the period of time for which such arrearage is calculated, and (iii) a direction that all payments are to be credited to current support obligations first, with any payment in excess of the current obligation applied to arrearages; and
      b. If support overages exist, (i) to whom an overage is owed and the amount of the overage, (ii) the period of time for which such overage is calculated, and (iii) how such overage is to be paid;
    • Address/phone update obligation10. If child support payments are ordered to be paid through the Department of Social Services or directly to the obligee, and unless the court for good cause shown orders otherwise, the parties shall give each other and the court and, when payments are to be made through the Department, the Department of Social Services at least 30 days' written notice, in advance, of any change of address and any change of telephone number within 30 days after the change;
    • Employment change notification11. If child support payments are ordered to be paid through the Department of Social Services, a provision requiring an obligor to keep the Department of Social Services informed, or if payments are ordered to be paid directly to the obligee, a provision requiring an obligor to keep the court informed, of (i) the name, address, and telephone number of his current employer; (ii) any change to his employment status; and (iii) if he has filed a claim for or is receiving benefits under the provisions of Title 60.2. The provision shall further specify that any such change in employment status or filing of a claim shall be communicated to the Department of Social Services or the court in writing within 30 days of such change or filing;
    • Health coverage updates 12. If child support payments are ordered to be paid through the Department of Social Services, a provision requiring the party obligated to provide health care coverage to keep the Department of Social Services informed of any changes in the availability of the health care coverage for the minor child or children, or if payments are ordered to be paid directly to the obligee, a provision requiring the party obligated to provide health care coverage to keep the other party informed of any changes in the availability of the health care coverage for the minor child or children;
    • Support allocation specifics13. The separate amounts due to each person under the order, unless the court specifically orders a unitary award of child and spousal support due or the order affirms a separation agreement containing provision for such unitary award;
    • Child support judgments & interest on arrearsNotice that in determination of a support obligation, the support obligation as it becomes due and unpaid creates a judgment by operation of law. The order shall also provide, pursuant to § 20-78.2, for interest on the arrearage at the judgment rate as established by § 6.2-302 unless the obligee, in a writing submitted to the court, waives the collection of interest;
    • DCSE & support modifications15. Notice that on and after July 1, 1994, the Department of Social Services may, pursuant to Chapter 19 (§ 63.2-1900 et seq.) of Title 63.2 and in accordance with §§ 20-108.2 and 63.2-1921, initiate a review of the amount of support ordered by any court;
    • Post-emancipation arrearage payments16. A statement that if any arrearages for child support, including interest or fees, exist at the time the youngest child included in the order emancipates, payments shall continue in the total amount due (current support plus amount applied toward arrearages) at the time of emancipation until all arrearages are paid;
    • DMV license suspension17. Notice that, in cases enforced by the Department of Social Services, the Department of Motor Vehicles may suspend or refuse to renew the driver's license, or other document issued under Chapter 3 (§ 46.2-300 et seq.) of Title 46.2 authorizing the operation of a motor vehicle upon the highways, of any person upon receipt of notice from the Department of Social Services that the person (i) is delinquent in the payment of child support by 90 days or in an amount of $5,000 or more or (ii) has failed to comply with a subpoena, summons, or warrant relating to paternity or child support proceedings.

The DC-631 mediation support agreement contains all the required Virginia Code § 20-60.3 notices

Why Do Bi-Weekly Payments Cause Arrears?

This issue arises from timing differences. Semi-monthly payments split the monthly obligation in half, paid on the 1st and 15th. Bi-weekly payments, made every 14 days, don't align with calendar months. For example, if the monthly obligation is $500, the semi-monthly payment is $250, but the bi-weekly payment is $230.77 (calculated by dividing the annual child support amount by 26).

In most months, only two bi-weekly payments are made, totaling $461.54—short of the $500 monthly obligation, creating a $38.46 arrearage. However, in two months each year, there are three bi-weekly payments, catching up on the annual shortfall.

What is the Effective Date of a Child Support Order?

The effective date of a child support order depends on the type of case. For an initial petition, the effective date is the date of filing. For a motion to amend, it is typically the date the non-requesting party is served, though parties may agree to an alternative effective date. Check with your mediation coordinator or court to determine if you have discretion to round the effective date to the 1st of the month. By rounding to the first of the following month, you avoid having to prorate the first monthly child support amount; however, click here to use an arrearage calculator which will prorate the first month for you.

If the effective date differs from the first payment date, the mediator must address how to handle arrears between these dates. For example, arrears may be calculated from the effective date up to the first payment date. This should be explicitly stated in the agreement.

Example: An initial petition was filed on May 7, 2021, with a hearing on August 27, 2021. The judge set the effective date as May 7, 2021, and the first payment date as September 1, 2021. Arrearages were calculated from May 7 to August 27. In this case, options to handle arrears include:

  • Calculating arrears from May 7 to July 31, excluding August.
  • Calculating arrears through August 31, with the first payment starting September 1.
  • Following the judge's decision but addressing the remaining days in August in the agreement (e.g., August 28-31).

When addressing arrears, agreements should clearly state the time period covered. For instance, in addition to writing “no arrearages as of December 14, 2022,” specify, “and nothing further is owed for December.” This clarity ensures all parties understand how arrears are handled between the effective date and the first payment date.

Mediators should prioritize detailing arrears in the agreement to avoid confusion and ensure accuracy.

Orders terminating child support. What should be written in the narrative?

If the children have all emancipated, then the order need only contain language as to when the order terminated, what arrearages there are, and how those arrearages will be paid back. If the children are still minor and the child support obligation is terminating for another reason, the order should specify what that reason is, as well as a statement regarding health care coverage and payment of uncovered medical expenses. Finally, if there is a wage withholding in place and no arrears are owed, the order should state that the wage withholding will be terminated. When the parties agree to terminate the wage withholding, it is best practice to expressly state that the wage withholding is terminated. Just saying that the child support is terminated may not be sufficient language to terminate the wage withholding.

Arrears, Overpayments & Interest

How should mediators handle over payments in mediated agreements?

Ask your mediation coordinator or the court for guidance on how to handle overpayments.

Chesterfield Mediation and DCSE came up with this method.

  • State the overpayment amount (overage) owed and you might consider including how the over payment was calculated/determined.
  • Depending on the size of the over payment divide the total over payment amount by 3, 10 or 12 months and reduce the amount the payor owes by this number. $0 support for a month or two is not a good option.
  • Example: Child support is $300 per month. The overpayment is $1000.00. The overage of $1000 could be divided by 10 months yielding a $100 reduction in payment for 10 months. “Both parties agree that parent x overpaid parent y $1000 between the time period of March 1, 2021 through December 31, 2021. The parties agree that parent x shall pay $200 per month child support beginning January 1, 2022 through October 2022. Payments between January 1 through October shall be made on the 1st day of each month. The parties agree parent x shall pay $300 per month child support payments beginning November 1, 2022. Subsequent payments are due on the 1st day of the each month thereafter.”

DC-631 - click on me now contains on page 2 of the form a new section called “Overages.” This section provides a template for how to handle overpayments in the mediated agreement. The template has you identify who the overage is owed to; whether the overage is child or spousal support; the amount of the overage as of the date of the agreement, including support owed for the current month; and lastly how the overage is to be paid back.

What should a mediator do with arrearages from uninsured medical and dental?

  • Usually, the person who pays for the medical/dental expense sends a copy of the bill to the other party. The other party then has thirty days to pay or agree on a repayment plan. If they do not respond in time, the person who paid these bills can ask the court for help by filing a motion for show cause for failure to pay the medical bills.
  • The party filing the show cause should come to court organized with a set of medical bills as well as table showing a break down of the costs.
  • Unless otherwise agreed to, support orders require the medical bills to be shared between the parents based on their income shares.
  • Ideally, any non-parental guardians should be fully reimbursed by the parents for healthcare costs. This is because these third-party caretakers do not have a legal duty to support the children. However, when these caretakers take the child to a medical provider, they take on the responsibility to pay for the medical expenses. Therefore, they should be reimbursed by the parents, based on their respective income shares.
  • Unpaid medical and dental bills should be separated from unpaid child support. The agreement should specify how these medical and dental arrearages will be repaid—whether as a lump sum by a certain date or through monthly payments over time.
  • Medical or dental expenses shall include but not be limited to eyeglasses, prescription medication, prosthetics, orthodontics, and mental health or developmental disabilities services, including but not limited to services provided by a social worker, psychologist, psychiatrist, counselor, or therapist.

Interest: How or should mediators handle interest? Will DCSE use the same interest for a pass-through case as a DCSE case? How does DCSE determine interest rate?

  • All child support orders, either administrative support orders or child support ordered through the courts, contain the notices required by the code of Virginia. Among them is the requirement that interest shall accrue at the rate specified in § 6.2-301. Currently, interest on judgments accrues at a rate of 6% annually, which equates to .005 per month charge on the total principal arrears balance for the month. Do not charge interest on accrued interest, only charge interest on accrued principal arrears.
  • Virginia Law requires that support orders include an amount for interest on the arrearage including from the date support is established or retroactively modified at the judgment interest rate unless the custodial parent, in a writing submitted to the court, waives the collection of interest. Arrearage Calculator handles interest on arrears.
  • Waiver of Arrears/interest: Regarding the ability to waive principal arrears, talk with your mediation coordinator as to the parties' authority to waive arrears. Virginia Law does not permit the waiver of principal child support arrears; however, over the years, many courts as a practical matter allow the waiver of principal arrears. Interest, on the otherhand, is waiverable if the parties agree to it in writing. The parties must expressly state in the mediated agreement that they are waiving interest. The statement should be specific as to waiving past interest, waiving future interest or waiving a specific amount of interest.
  • DCSE uses the same financial system for open DCSE cases as well as pass through cases. What's the difference?
    • In pass-through cases, DCSE only receives payments when a wage withholding is in place, while all other payments go directly from the noncustodial parent to the custodial parent. As a result, DCSE's arrears record may not reflect the full amount owed because it doesn't account for direct payments made outside of wage withholding.
      Therefore, the arrears amount shown on DCSE records should not be used to determine the total arrears owed. However, the payment amounts on the DCSE record can be useful for verifying when and how much was paid through wage withholding. To determine the total arrears accurately, you'll need to combine DCSE's wage withholding payment records with proof of direct payments provided by the noncustodial parent.
    • In open DCSE cases, where all child support payments are processed through DCSE, their records provide a complete and accurate history of payments. Since payments are made exclusively through DCSE, the arrears amount listed reflects the total unpaid child support as calculated based on the court order and payment history.
      This means you can rely on DCSE records to establish the arrears owed, as they account for all payments received and applied to the child support obligation. Unlike pass-through cases, there's no need to cross-reference with direct payments, since all transactions are centralized in the DCSE system.

What is Considered Income?

Click Here for a nut and bolts approach to income.

Are Tax credits considered income?

The position of DCSE AAGs is that the monthly tax credit is not income. The American Rescue Plan Act of 2021, Sec. 9611 (ARPA) indicates that the tax credit is a credit against imposed taxes. So this credit is decreasing a tax obligation.

Is Inheritance considered income?

Inheritance is technically considered income because it is a testamentary gift. However, the practical answer is "maybe," as it often depends on the circumstances of the case. Key considerations include the form of the inheritance (e.g., real estate versus cash) and how it should be handled. Below are some approaches:

  • Handling Lump Sums: If the inheritance is a lump sum, one option is to spread it over a period of time (e.g., 12 months). It's important to indicate in the agreement that this is not work-related income and clearly state the portion attributable to the inheritance.
    Example wording: “Parties agree to spread the inheritance as an additional $500 per month for the next year, starting from the date of this order. Both parties agree that the additional $500 is due to inheritance and is not work-related income.”
    Note: Parties will need to file a Modification to Agreement (MTA) when the lump sum expires.
  • Running Dual Guidelines: Another option is to calculate two sets of guidelines: one including the inheritance and one excluding it. Parties can then use these calculations as a basis for negotiating a deviation.
  • Key Takeaway: There are various ways to handle inheritance depending on its form. Mediators should clearly explain these options so the parties can make informed decisions during mediation.

Can mediators impute income?

If spousal support is paid or received by a third party does this count as income or is a credit given for the payor?

  • Even if a person is receiving spousal support from a third party (receiving payments from someone who is not a party to the current action), it is still considered income.
  • If a person is paying a third party who is not a party to the current action, then the amount the person is paying gets deducted from the gross income, just as if the party was paying spousal support to the other party in the current action. Be sure to have documentation to support the claims and ask if the payor is paying the spousal support.
  • For the payor to receive an adjustment in the guidelines, the payor must be paying in accordance to a court order or a written agreement.
  • Where possible review six months of payments and calculate the average of those spousal support payments.

What does the mediator need to do differently for child support cases that involve military members?

  • Click Here on the nuts and bolts of Military Pay
  • DFAS (Defense Finance and Accounting Service) will only accept wage withholding electronically. The court or DCSE completes the paperwork for setting up wage withholding but the mediator needs to be sure the agreement states payment through wage withholding. If DCSE is not involved, the agreement should state that the court shall issue a wage withholding to DFAS and if DCSE has an open case, then the agreement should state that DCSE will issue a wage withholding to DFAS.
  • Mediators should ask for the LES (Leave Earning Statement). There is a tutorial on how to read the LES: http://www.dfas.mil/militarymembers/payentitlements/aboutpay.html There are also several YOUTUBE videos on how to read the LES.
  • For child support calculations, gross income includes both taxable and nontaxable pay from the DFAS and the Veteran's Administration. At the bottom of the LES there should be a section with fine print that outlines the Basic Allowances such as BAH for housing; HDIP for hazardous duty; HDP for Hardship Duty, etc.. All of these allowances are added into the gross monthly income figure. If someone gets HDP for three months…average it out for a year to determine monthly income. BAH (housing) and BAS (sustenance) are NOT taxed and do not show up on a W2 for military. W2 for military only captures the basic pay and bonuses, which are taxable. BAH AND BAS are not taxable but still considered income in Virginia. Box 1 on W-2 may not reflect all income (as it won't have BAH/BAS) Box 3 is likely a greater amount than box 1. Box 12 with code of Q includes income earned in a combat zone tax exclusion area. For detailed information, google “How to read military W2”. If a motion to modify child support is filed due to a parent's deployment and the parents reach an agreement on the modification of child support under the deployment circumstance, it would be prudent to clearly indicate in the written agreement the reason for the change in child support being due to deployment.

Table of what is and is not income

Item Treated as Income
Salary Yes
Bonus Yes
TANF/SNAP/Public Assistance No
Gifts Yes
Inheritance: Testamentary Gift Yes*
Secondary employment income not previously included in "gross income," where the payor obtained the second job to discharge a child support arrearage No
Spousal Support Yes
Child Support No
Living Rent Free at Parent's home No
Room & board in return for services such as cleaning apartments Yes
Personal Injury Proceeds No
Workers Compensation to the extent the proceeds are for reimbursement for loss of work-related income Yes
Unemployment Compensation Yes
Federal Supplement Security Income (SSI) No
Social Security Disability Insurance (SSDI) Yes
VA Disability Compensation Yes
Post 9-11 GI Cash Educational Stipend Yes
Pell Grant Yes
Military: Basic Allowance for Housing Yes
Military: Basic Allowance for Subsistence Yes
Military: Allowances and bonuses such as hazardous duty, submarine pay, parachute pay, foreign language pay, enlistment and reinlistement bonuses, etc Yes
Rental Income less actual expenses Yes
Interest Income from Bank Account etc... Yes
Stock Dividends Yes
Capital Gains Yes

Best Practices for Calculating Child Support

Which is calculated first: Child support or spousal support.

  • Spousal support is always calculated first, as it affects income used to determine child support. Spousal support increases the income for the party receiving the spousal support, and decreases the income for the party paying the spousal support.
  • Child support and Spousal Support are separate calculations, each with its own rules and arrearages.

Why does Health Care Coverage get flagged in some child support calculation programs?

  • "Reasonable cost" for health care coverage for dependent children means:

    • The health insurance cost for the child(ren) should not exceed five percent of the gross income of the parent responsible for providing health care coverage(dental/vision insurance cost is not included in this calculation).
    • However, the court can decide otherwise in the best interests of the child, especially if the only available coverage exceeds five percent or if the parents agree on a different arrangement.
  • As a general rule, the higher the health insurance premium cost paid by the non-custodial parent, the less child support the custodial parent receives because the guidelines reimburse the noncustodial parent for the custodial parent's portion of the premium owed.
  • As a general rule, the higher the health insurance premium cost paid by the custodial parent, the greater amount the noncustodial parent pays in child support because the noncustodial parent is reimbursing the custodial parent for his portion of the premium owed.
  • The 5% Rule is rarely raised in court. Nonetheless,you should discuss this issue with the mediation coordinator or the court to obtain guidance if the issue is ever raised. Options:
    • Insert in the agreement that the cost of health insurance is unreasonable and do not include the amount in the guidelines.
    • Discuss the consequences of the child(ren) not having health insurance with the parties. Without insurance, parents are still responsible for unreimbursed medical expenses, which can lead to significant financial strain for both parents. Moreover, the lack of coverage can negatively impact the children's well-being.
    • Calculate 5% of the gross income of the parent responsible for providing health care coverage as a means to resolve the conflict and compare that to the actual cost.
    • In some cases, the adding a child to an existing family plan may have no financial affect on that parent.
    • The parents may wish to explore applying for Medicaid or FAMIS.

If a parent is going to college and has a child in daycare so they can go to college, does this count as a “work related childcare expense”?

  • No, the daycare cost is not considered work-related.
  • However, Virginia Code § 20-108.1 (4) permits the court to consider custodial parent's daycare costs if the educational or vocational program is likely to maintain or increase their earning potential.
  • Work-related childcare considerations:
    • While the custodial parent's work-related childcare costs are included in the presumptive monthly child support obligation, the noncustodial parent's work-related childcare costs are not.
    • The work-related childcare cost should not exceed the costs required for quality care from a licensed provider.
    • The court may require the custodial parent to provide proof of childcare costs if requested by the noncustodial parent.
    • The court can consider whether the noncustodial parent is willing and available to provide childcare, potentially reducing costs.
    • If either parent benefits from tax deductions or credits for childcare costs, the court can factor in those savings when requested.

How do you help people figure out if they have SSI or SSDI?

  • If someone claims to have a disability, they should have the necessary paperwork. SSDI (also known as SSA) is provided to individuals who have earned taxable income in the past. Children of those receiving SSDI are entitled to derivative benefits, so both parents must work together to ensure the child gets what they are entitled to. Both the court and DCSE can issue wage withholdings to the Social Security Administration to collect monthly child support.
  • SSI, on the other hand, is given to anyone with a qualifying disability who meets a financial needs test. SSI is not considered income, and no derivative benefits are provided. It's best not to mediate a case if the payor receives SSI; instead, send it to court. However, if the payee receives SSI, mediation can proceed. The Social Security Administration will not honor a wage withholding request for SSI; moreover, DCSE is prohibited by federal law from enforcing a support order against a noncustodial parent who is on SSI.
  • This is one of the rare situations where the court can set the current child support amount below the presumptive minimum amount. While it's uncommon, the court may even set child support at zero. In many cases, this effectively converts the matter into an arrears-only case, focusing on determining the monthly repayment amount the noncustodial parent will pay toward their child support arrears.

Why do some DC-628 child support orders set current child support at -0-?

  • It is best practice to set ongoing support at zero if the parties intend to terminate the child support order. Leaving the support amount blank and addressing only arrears repayment could lead to complications later. The court might interpret the omission as an indication that the support order was not terminated, meaning current support continued to accrue. It happens!!!
  • The court may set the current child support amount at zero if the noncustodial parent is on SSI.
  • In many cases where a child receives derivative benefits from the noncustodial parent's SSDI, the child support guidelines may show zero current child support. This is because the noncustodial parent receives a dollar-for-dollar credit off their monthly child support obligation for the derivative benefits paid directly to the custodial parent.

When does the 6-month period for pregnancy and delivery costs in a child support agreement begin?

  • Pursuant to Va. Sup. Ct. R. 3:2, a civil action is commenced by filing a complaint in the clerk's office.
  • The six month clock begins to start on the date the petition is filed with the court.
  • Check the court's date stamp on the petition to determine the filing date.
  • If the petition was filed within six months of the child's birth, the pregnancy and delivery costs are included in the child support order. The child support order requires parents to pay unpaid pregnancy and delivery expenses proportionate to their income shares. These payments are separate from and not included in the regular child support calculation.
  • These costs are treated in a similar fashion as other unreimbursed medical costs. The parent's financial responsibility is based on their income shares. The total unpaid pregnancy and delivery cost incurred should be setforth in the child support order.

Should mediators run child support guidelines based on the most recent custody/visitation order? Are there exceptions to this?

The best practice is for mediators to use the most recent custody/visitation order to determine which child support guideline to use. If shared guidelines is appropriate, the mediators should use this custody/visitation order to calculate the day-count.

Exceptions to this rule include:

  • If parents have made changes to a previous custody or visitation order without court involvement and agree on the current schedule for the children, the mediator can use the agreed schedule to calculate the day count. If the agreed schedule dictates using a different guideline than before, the mediator should explain in the narrative why the new worksheet was chosen.
  • If the parents cannot agree on the current custody schedule or choose not to use the previous court order (because they are following a different arrangement), the mediator should pause the session. However, the mediator may run child support calculations based on each parent's view of the current arrangement to show the potential differences in support amounts. If the parents reach an agreement, the mediator should clearly explain in the agreement how the child support amount was calculated, including a brief narrative for clarity. The mediation should attach both guidelines to the agreement when submitting the agreement to the court.
  • Providing a narrative explains the guideline choice, helps the court or mediator understand the reasoning during future support modifications.
  • Scenario Example: A family files a motion to amend child support. Six years ago, a joint physical custody order was entered, and a shared guideline was used to calculate child support. Two years later, a parent filed to amend support, and the Judge used a sole guideline, likely based on changes in the parents' actual custody arrangement, even though the original custody order remained unchanged.
    In mediation, a different guideline worksheet can be used if both parents agree on the current custody schedule. The mediated agreement should clearly state which guideline worksheet was used and why, reflecting the updated custody arrangement rather than the previous court order.
  • This scenario highlights the importance for mediators to understand the case history and review previous custody, visitation, and child support orders.

If the paying parent for child support is self employed can the case be set up as a passthrough case?

  • In 99.99% of the cases, the answer is no. If the noncustodial parent has a payroll company then it could work with the wage withholding sent directly to the payroll company.
  • In this scenario, the party receiving the payments has two options: 1). Set up a full service case with DCSE, or 2). Accept payment directly from the payor. A passthrough case requires wage withholding which is challenging to do with someone who is self employed.
  • The law now allows wage withholdings to be served on employers of independent contractors. The wage withholding does not kick in until after the first $600/year is paid by the employer. However, this provision on serving the independent contractor's employers is rarely used or enforced.

How does a parent get credit for what they paid until wage withholding is established (it takes time to get a wagewithholding set up)

  • If there is already a Division case, then the payor should be making all payments through the Division (Click Here to see the 5 Ways to Pay handout).
  • If DCSE does not have an open case, then the payor should pay the payee directly and both parties should keep accurate records and receipts.
  • Even if a wage withholding is set up, it is the payor's responsibility to make sure the full amount of support is being withheld. If not, then the payor shall pay the outstanding monthly balance to the Division.

Working with DCSE

What questions can a mediator ask to help determine if a case is a DCSE case? How can a mediator discern if a case is a DCSE case, a nonDCSE case or a passthrough case (Court Ordered Wagewithholding Case)?

  • DCSE Case: A DCSE case exists where either one of the parties applied for DCSE services or the children are receiving TANF or Fostercare benefits or the noncustodial parent owes child support (TANF/Fostercare) arrears.
  • NonDCSE Case: A NonDCSE case exists when no one has applied for DCSE services, the children have never received TANF or Fostercare benefits and there has never been a court ordered wage withholding
  • Passthrough Case: A passthrough case exists when the court has a court ordered wage withholding in place or had one in place.
  • Not sure: Have one of the parties call DCSE and inquire if there is an open case. 1 (800) 468-8894

Questions to ask the parties to determine whether DCSE is involved or not

  • On MTA…..how have payments been made in the past? If they are paying DCSE directly (but not through IWO) then it is most likely a DCSE case.
  • Has either party filed an application for DCSE services?
  • Are the children currently receiving TANF or Fostercare benefits?
  • Does the prior order require the noncustodial parent to pay DCSE or the custodial parent?
  • Is there a DCSE case number on the prior order?
  • Did the last order contain a court ordered wage withholding provision or a DCSE administrative wage withholding provision?
  • Is the custodial parent receiving a daycare subsidy? If so, they are usually required to sign up for DCSE services.

Is a mediator authorized to work an open DCSE case, where no TANF or Fostercare benefits have been received?

  • yes, mediators can work DCSE cases where no TANF or Fostercare benefits have been received; moreover, where the custodial parent is receiving a daycare subsidy, mediation can proceed forward.
  • For initial child support petitions, it's important to check if both parents are listed on the birth certificate. It's best to establish paternity before issuing any child support order. Even if both parties agree on the support order, the Division of Child Support Enforcement (DCSE) will still need to file for paternity determination. If the parents go through DCSE to do the paternity testing, the cost is very inexpensive. DCSE pays the cost upfront. If the noncustodial parent is found to be the father, he would reimburse DCSE this cost down the road. Omce the court enters a paternity test order, the turn around time is less than six weeks in most cases. If the noncustodial parent wishes to acknowledge paternity, the parties can appear at a DCSE district office together and enter into an acknowledgement of paternity.
  • Mediator just need to be cognizant, that when dealing with an open DCSE case, payments are owed to the Treasurer of Virginia and that if the noncustodial parent mails a payment to DCSE, the check or money order should contain the noncustodial parent's full name and full social security number. The check/money order should be mailed to the following address: Division of Child Support Enforcement
    P.O. Box 28990
    Richmond, VA 23228
    1 (800) 468-8894
  • In addition, DCSE requests that for all DCSE cases,the mediated agreements authorize DCSE to issue an administrative wage withholding, even if the noncustodial parent is self-employed or unemployed.

Is a mediator authorized to work a DCSE pass through case?

  • Yes, mediators can mediate DCSE pass through cases.
  • Unlike DCSE open cases, payments are ordered to be paid directly to the custodial parent even if the order requires a court ordered wage withholding.
  • Unlike DCSE open cases, the court directs the clerk to issue the wage withholding and not DCSE. Be cognizant that if the noncustodial parent changes job, he needs to provide the court in writing his new employer's information so that the court can reissue the wage withholding to the new employer. Unlike DCSE, the court does not monitor wage withholdings.
  • When child support terminates, it is up to the parties to seek termination of the court issued wage withholding. Typically, a motion to terminate a wage withholding is filed with the court. Even if the court terminates child support, it does not necessarily mean that the wage withholding is terminated; therefore, it is best practice to not only seek to terminate the child support order but also terminate the wage withholding when it is time to terminate child support.
  • Since DCSE is not managing the case, its fiscal record is not accurate. The parties need to keep good payment records

What is the process for switching from direct child support payments to a full-service DCSE case? How long does it take, and what happens to payments in the meantime?

  • If there isn't already a DCSE case, the party wanting DCSE services must complete an application. Until the payor receives a “Change in Payee” notice from DCSE, payments should continue directly to the payee, with both parties keeping detailed records.
  • When applying for DCSE services, the payee submits an affidavit listing payments received directly. The payor can review this and provide any additional receipts. Failing to respond to DCSE's requests for payment records can lead to issues, as the arrears balance will be calculated based only on the available information. This could result in an inaccurate arrears amount.

What is a 36 month review? Under what circumstances can the review be done earlier? What triggers a review?

  • Any party has an automatic right of review if the prior order is older than 36 months and there has not been a request to review support during this time period. No change of circumstances need to be shown.
  • DCSE automatically reviews TANF/fostercare cases every 36 months.
  • A party has to make a request to obtain this 36 month review. The review will automatically be granted if the last request for modification has been more than three years and the prior order is at least 36 months old.
  • If a party makes a request during the 36 months after entry of the order, that party must show special circumstances that justify the request.
    Special Circumstances:
    • A child needs to be added to the order.
    • One of the children have emancipated.
    • Health care coverage needs to be added to the order.
    • The health care coverage insurance premium increases or decreases by at least 25%.
    • The existing child support order does not include the unreimbursed medical/dental provision.
    • The Custodial Parent's work-related childcare expense increases or decreases by at least 25%.
    • Either parent's income increases or decreases by at least 25%.
    • The noncustodial parent serving a jail sentence of more than a 180 days consecutively.
    • The noncustodial parent begins receiving social security benefits.
    • One of the parents have been called up for military reserve duty has a change in income.
  • For the review to move forward under special circumstances,there must at least a 10% change in the amount of child support and the changed amount must be greater than $25.00.
  • If the review is granted, DCSE will pursue entry of a new order, either an admnistrative order or a court order.
  • For court reviews, in most cases child support guidelines will be rerun at court to determine the new support amount.

When preparing to complete an application for DCSE services, what documents should clients have ready?

  • Any orders entered by a court, Property Settlement Agreements, Final Decree of Divorce, and out of state orders.
  • The child or children's birth certificate, social security card, and health insurance card.
  • Some local DCSE offices recommend submitting applications in person, as that helps the review process. The DCSE can review the application with the party to make sure the information is correct.

How often is the payee paid?

  • Payments are disbursed as they are received. If the paying parent pays DCSE every other week, DCSE will disburse the money every other week. If the paying parent pays DCSE once a month, DCSE will disburse the money once a month.
  • If the noncustodial parent has multiple child support cases, payments are divided between them based on the monthly current child support amount owed. For example, if Parent A is owed $100 per month and Parent B is owed $200 per month, and the noncustodial parent only pays $100 for the month, Parent B will get 2/3 of the payment, and Parent A will get 1/3.
  • The same principal applies to arrears. If current support for both cases is paid in full, then any money going to pay off arrears will be allocated based on the arrears balance of each case. If Custodial Parent A is owed $2000 in arrears and Custodial Parent B is owed $1000 in arrears and the noncustodial parent has paid $500 for the month, paying off the $300 current support for both cases then the remaining $200 will be allocated in proportion to the arrears owed with the Custodial Parent A receiving 2/3 of the $300 and Custodial Parent B receiving 1/3 of the $300.