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Orange County Family Law Attorney

Calculating Net Disposable Income for Child Support in California

When couples go through an Orange County divorce, the assets and the kids in the divorce are shared between the spouses. The courts usually order one spouse to pay the other, who has the greater share of the child’s custody, the child support amount. This amount is specifically given to be used for the welfare and well being of the couple’s child(ren). The amount of child supports is calculated using the spouses’ net disposable income. There are several considerations that should be taken into account when calculating the net disposable income. Here is a list of the things that affect the amount of net disposable income in child support calculations:

Health Insurance decreases the child support

The deductions for health insurance and their premiums are done from the gross income. The amount of such deductions depends on the number of children you have. Health insurance premiums are factored into the support calculation for each parent.

State and Federal Taxes and their effect on the Net Disposable Income

These are the amounts of taxes you pay on a yearly basis, such as income tax.  What is relevant is the tax filing status of the parties, and that is often dependent on which parent has over 50% custodial timeshare to be able to claim “head of household” filing status.  The tax deductions from your income are proportionate to the way you and your spouse file their taxes. At this point, it is vital to understand that the tax filing status of the spouses should be consistent.

Union dues and Retirements benefits

The mandatory union benefits deductions and retirement’s benefits that come in line with mandatory pension contributions can be deducted by Orange County divorce lawyers when the net disposable incomes are being calculated. If someone only makes voluntary, discretionary  contributions to a 401(k) plan or IRA, these aren’t deductible.

Expenses related to one’s job

In child support calculations, it is not unusual to see the courts allow the parent’s deduction in their net disposable income for expenses pertaining to their jobs. This, however, is only allowed by the court if the parent is able to show that the expenses are important, necessary, and reasonable for the person to classify as expenses on his job. These expenses shouldn’t be mistaken with the business expenses though, that are deducted when the courts are deciding the spouses’ income.

Child custody and child support cases in California are the most contested ones. Even after their  divorce, couples are always looking to get the best for their children. In such cases, it is important to realize that child support calculations can sometimes be complex and seeking the advice and counsel of a family law attorney in Orange County or where you otherwise live is highly recommended.

divorce_attorneyGerald A. Maggio is an experienced Orange County divorce and family law attorney and family law attorney located in Irvine, California, serving the Orange County and Riverside areas. Mr. Maggio assists clients with legal issues including divorce, legal separation, divorce mediation, child custody, prenuptial agreements, stepparent adoptions, and other family law issues. Mr. Maggio has practiced law in California since 1999, and founded The Maggio Law Firm in 2005, focusing exclusively on divorce and family law matters.

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