When parents in New York get divorced, child support is one of the important factors that they will have to consider. Unmarried parents who are co-parenting also seek the court’s intervention with child support, as the primary custodian needs help ensuring the child’s financial stability and well-being. In this blog, we will discuss the formula used to determine child support payments.
The New York Child Support Standards Act
In general, the courts will determine the amount of child support to be paid on a regular basis. The court refers to set guidelines that consider an individual's annual earnings.
New York Domestic Relations Law § 240 and Family Court Act § 413 outline the factors the court uses to calculate a parent’s child support obligation. Important definitions and terms outlined in these statutes include the following:
- Basic child support obligations refer to the calculated total found by applying a specific percentage to the combined parental income up to a cap (which is adjusted periodically for inflation). This percentage varies based on the number of children. The law specifies that this percentage is applied to the combined parental income up to the cap (currently $183,000, but subject to change). For income above the cap, the court has the discretion to apply these percentages or to consider other factors in determining additional support.
- Child support refers to the sum that either or both parents must pay in support of an unemancipated minor child’s care and education.
- Self-support reserve refers to the specific amount of income that is considered necessary for a parent to meet their own basic needs before being required to pay child support. In New York, the self-support reserve is set at 135% of the federal poverty level for a single person. This amount is updated annually, and if a non-custodial parent’s income is at, near, or below this number, their child support obligation may be reduced.
- Child support percentages are as follows:
- One child means 17% of the combined parental income will be allocated for support.
- Two children necessitate that 25% of the combined parental income be allocated for support.
- Three children require 29% of the combined parental income to be allocated for support.
- Four children mean that 31% of the combined parental income will be allocated for support.
- Five or more children mean that no less than 35% of the combined parental income will be allocated for support.
- Cash medical support refers to the outlined amount that a parent must contribute to the cost of employer-provided or public health insurance plans.
It is important to note that parents have to pay support even in cases where parents have joint custody. In New York, child support is awarded regardless of the time each parent spends with the children. Additionally, parents are expected to cover uninsured medical expenses, childcare, and education expenses in addition to the monthly support payment.
How to Calculate Child Support in New York
Determining owed child support involves the following steps:
- Establish each party’s gross income. The court first determines the gross income of both parents. This includes all sources of income such as wages and salary, bonuses and commissions, investment income, rental income, self-employment income, workers' compensation benefits, unemployment insurance benefits, disability benefits, and pension and retirement benefits.
- Subtract relevant deductions from the gross income. Certain deductions can be made from the gross income calculation, including alimony payments, Medicare and SSI taxes, and child support payments made to children not included in this action.
- Determine the percentage of income allocated for child support. As we explained earlier, a percentage of the combined parental income is allocated for child support payments based on the number of children.
- Establish the pro-rata share of child support owed. The court then determines each parent's share of the total combined parental income. This percentage is used to calculate each parent's pro-rata share of the child support obligation It is believed that this type of sliding scale also takes into account how much money would go towards a child's care if both parents lived in the same household. For example, if the total combined parental income is $100,000, and Parent A earns $60,000 while Parent B earns $40,000, their pro-rata shares would be 60% and 40%, respectively. The higher-earning parent typically pays their pro-rata share of the child support amount to the lower-earning parent. In our example, if there are two children (25% allocation), the total child support would be $25,000. Parent A would be responsible for 60% of this amount, or $15,000 per year in child support payments. The courts are able to award a lower amount if the income left to the parent after child support falls below the federal poverty level.
Imputed Income & Child Support Calculations
Imputed income plays a significant role in New York child support determinations. It refers to income that a parent is assumed to have the ability to earn, even if they are not actually earning it.
There are several reasons why a court might impute income. These include:
- Voluntary unemployment or underemployment
- Failure to provide adequate financial information
- Unreported cash income or "off the books" work
- Recent job loss without good faith efforts to find new employment
- Deliberate reduction in income to avoid child support obligations
When considering whether to impute income and how much to impute, courts look at factors such as:
- The parent's prior employment history and earning capacity
- Their educational background and skills
- The current job market and available opportunities
- The reasons for unemployment or underemployment
- Any barriers to employment
Courts have various methods for determining imputed income. They may consider the parent's previous salary or wages, prevailing wages for the parent's occupation in the area, the income of individuals with similar qualifications in the same field, benefits received (such as free housing or a company car), and income from assets or investments.
When income is imputed, it's treated as part of the parent's gross income for child support calculations. This means it's added to any actual income the parent is earning, included in determining the combined parental income, and affects the pro-rata share of child support each parent is responsible for. New York courts have significant discretion in deciding whether to impute income and how much to impute, but they must provide reasoning for their decision.
A parent can challenge the imputation of income by providing evidence of genuine efforts to find employment, demonstrating barriers to employment (such as health issues), or showing that their current income accurately reflects their earning capacity. Courts may impute income temporarily (for example, while a parent seeks new employment) or on a long-term basis, depending on the circumstances.
Back-Owed Child Support Can Be Added to the Total
The amount of child support paid depends on more than the regular support amount determined by the courts. Any payments that were missed must be caught up.
Learn more about retroactive child support.
Arnel Law Firm Can Help With Your Child Support Case
Our attorneys offer comprehensive counsel to those seeking help with an initial child support petition as well as those seeking counsel in collecting back child support. With 35+ years of experience helping clients with their family law matters, including child support claims, our firm can act as your guide and advocate in custody cases. Whether you need help calculating what you may have to pay or have questions about how to file for support, we are here for you.
We understand that circumstances can change that impact your ability to pay court-ireded support. If the child support payments have created a hardship for you, then we can present that information and any relevant evidence to the court when requesting support modifications.
To request a free case consultation, give us a call at (718) 550-3024.
