How Child Support is Calculated in Pennsylvania
Child Support is, understandably, a primary factor of concern for divorcing parents. When a family is intact, there is one home, one grocery budget, one checking account to buy shoes and school supplies and trips to the movies.
The separation of domiciles in divorce can mean double living expenses and possibly more or less working hours. The financial needs of children remain the same, or even grow when spread between two homes. Depending on the situation, there will most certainly be added costs to shuttling children between two custodial parents, and duplicate bedrooms at each location. Childcare expenses often increase when one parent is no longer available to “hold down the fort” while the other, say, goes grocery shopping.
Pennsylvania law uses the Income Shares Model to calculate the amount of child support an Obligor must pay. It is based on the idea that the child of separated, divorced or never-married parents should receive the same proportion of parental income that they would have received if both parents lived together. A number of federal and state data sources are used to estimate expenditures for a child’s food, housing, transportation and clothing. The net income of each parent is calculated, as well as their percentage of custodial care.
There’s no quick way to arrive at the child support number, as so many factors come into play. Our law office uses specialized software to calculate the obligations of both parties, based on the Pennsylvania Support Guidelines. Even so, such a calculation can only follow a detailed interview to determine a number of factors.
CURRENT NET INCOME. This number comes from the paystubs, W-2 forms and tax returns of each party, using a six month average. Complications arise when either or both parties have additional, unreported sources of income, or receive some form of government subsidy.
For instance, business owners may legitimately claim business expenses such as a car, cellphone and other costs on their business tax returns. When it comes to calculating child support, though, these expenses are added back to net income as they are a form of benefit to the owner.
In situations where one party suspects the other of hiding income, either through cash receipts or other methods, further investigation is warranted.
REASONABLE NEEDS AND ABILITY TO SUPPORT. Pennsylvania law assumes that child support is a primary obligation of each parent. The law does not consider what lifestyle the obligor would prefer to lead. Rather, Pennsylvania support calculations consider what is reasonable for the parents’ income level.
The law also takes into account whether or not the obligor is already paying alimony and support to a former spouse, and whether the obligor is working to his or her full earning potential. For instance, if historical records show a parent is capable of earning $50,000 per year, but is now choosing a lower level or part-time job earning only $25,000 per year, the lapsed earning potential may be taken into account.
SHARED CUSTODY. Many divorces result in shared legal and/or physical custody of children. Pennsylvania law calculates the percentage of custody of each parent and assumes that, during periods of custody, a parent will be providing housing, clothing and food. The percentage of custody will affect the amount of child support.
CHILDCARE EXPENSES AND HEALTH INSURANCE. Childcare necessary to maintain employment is allocated between both parents. So, too, are health insurance premiums and out of pocket medical expenses for the children and/or the other parent.
Child support calculations must start with verifiable documents, such as tax returns, W-2s and paystubs. If one party suspects the other of hiding income sources, it’s reasonable to investigate further. Lawyers and judges are skeptical by nature and by law. For example, if one parent claims $20,000 per year in income but maintains a lifestyle that includes expensive travel, new cars and other luxury items, the discrepancy will be noticed.
WHEN CHILD SUPPORT ENDS. Child Support can be modified anytime income or expenses change significantly. If a stay-at-home parent re-enters the job market, for instance, the amount of support paid would likely be reduced. All this is handled, with documentation, in a Support Conference with a Domestic Relations Support Hearing Officer or, when necessary, a Hearing before a Judge.
Child Support ends when a child is 18 and has graduated high school, whichever date is later. If a child has special needs, Pennsylvania Education Code allows that child to stay in school until age 21. The Support Office will take special needs and disabilities into consideration when determining a termination date for support.
NO PROVISION FOR COLLEGE. Pennsylvania law does not require a parent to provide for a child’s college through support payments. It is usual for divorcing parents to negotiate college tuition during the equitable distribution process.
Pennsylvania Support Action law is constructed to protect children from the financial backlash of their parents’ divorce. The Code contains many “allowable deviations,” which are too numerous or complicated to discuss here. The intent, though, is to fashion a support model that can be adjusted to fit individual situations while also allowing that “persons similarly situated shall be treated similarly.”