When parents separate or divorce, they are still responsible for the financial support of their children. Child support is assigned to ensure both parents remain responsible for their share of their child’s expenses. Determining child support can be an emotionally challenging issue for parents. It can be easier with an Indianapolis child support attorney who can help parents negotiate child support or protect their rights while the court determines child support.
Understanding how the court makes decisions about child support can help parents understand their responsibilities and ensure their children get the financial support they deserve. In some cases, extraordinary expenses and other unique circumstances may result in a higher or lower child support obligation. The guidance of an attorney can help you understand how the law affects your family’s unique situation.
The Income Shares Model
The goal of the income shares model is to provide a child with the same level and proportion of support from each parent that they would have received if their parents remained living together. The income shares model looks at the adjusted gross income of each parent, the total adjusted gross income, and the basic costs required to raise a child. This is considered to be the fairest option for children and for parents.
Each parent is responsible for providing the percentage of support that they bring to the combined total. If one parent is responsible for 40% of the combined income, then they are responsible for 40% of their child’s support. If they are the sole custodial parent, then they receive the other 60% from the noncustodial parent in support payments. If the other parent is the sole custodial parent, then they provide their 40% in support payments.
This is how the model is applied when one parent is the primary custodial parent and is responsible for all the expenses of raising a child. When parents share parenting time of their children and are both responsible for these costs, then child support payments operate slightly differently. Parenting time credit is used to ensure each parent is paying a fair amount of their child’s expenses.
What Income Is Included in Gross Income?
When the family court reviews the income of each parent, it looks at the gross weekly income of parents. Weekly gross income is defined as one of the following:
- The actual income of a parent if they are fully employed
- The potential income of a parent if they are currently unemployed
- The value of non-cash benefits a parent receives in their employment
Gross weekly income includes the following forms of income from nearly any source:
- Salaries, wages, commissions, bonuses, and overtime
- Income from self-employment or a business minus certain expenses
- Partnership distributions
- Severance pay
- Pensions
- Dividends, annuities, and interest
- Trust income
- Capital gains
- Structured settlements
- Workers’ compensation benefits
- Social Security benefits
- Unemployment insurance benefits
- Disability insurance benefits
- Gifts, inheritance, and prizes
- Spousal maintenance or alimony
There are some things that are excluded from gross income, such as the value of means-tested public assistance programs. Survivor benefits for other children in either parent’s home are also excluded. When a parent is unemployed or underemployed voluntarily, and there is no just cause for it, child support is calculated based on potential income. A parent cannot avoid paying support by choosing not to work or to work less.
The court will determine potential income based on the parent’s history of employment and earnings, their qualifications and education, their age and health, and other factors. The court may also assume the gross income is the federal minimum wage if there is not enough information, as long as this does not prevent the parent from supporting themself.
FAQs
Q: How Is Child Support Calculated in Indiana?
A: Child support is calculated in Indiana based on the income shares model. This model uses the following steps:
- Combining the gross income of both parents and determining each parent’s percentage share of the total
- Using the combined gross income to determine basic weekly support payments
- Adding child care and healthcare expenses to the payment amount
- Dividing the final amount proportionally between parents based on their percentage of income
- Reviewing parenting time credit
Q: What Is the 6% Rule for Child Support in Indiana?
A: The 6% rule is no longer used for child support in Indiana. In past child support determinations, this rule referred to the estimation that 6% of basic child support payments was the amount of uninsured healthcare expenses. However, this is considered outdated. The current model does not use the 6% rule, and instead, the primary custodial parent covers these expenses, which are considered part of the basic support payments.
Q: Does Indiana Consider a Spouse’s Income for Child Support?
A: Yes, Indiana considers each parent’s gross income for child support, as well as their combined gross income. However, if one parent remarries, the income of the new spouse is typically not included in the child support calculations. Under the income shares model, Indiana looks at the income of each parent and the percentage each parent brings to the total income, as well as parenting time credit for non-sole custody arrangements.
Q: Can Parents Agree to No Child Support in Indiana?
A: Parents cannot always agree to no child support in Indiana. Child support is the extension of each parent’s legal obligation to provide their child with financial support in Indiana. If parents are living separately, one parent is covering more or all of a child’s expenses, and the other parent has a legal requirement to provide support. Parents can only agree to no child support if they are living together and sharing expenses for their children.
Support Your Children in Indianapolis With Stange Law Firm
There are many circumstances that can complicate the determination of child support payments. By working with a skilled child support attorney, you can get experienced legal guidance on fair child support based on your and your co-parent’s income as well as the needs of your child. You can support your own financial well-being and protect your child’s financial needs. Contact Stange Law Firm today.
