Beginning on September 1, 2024, child support laws in California are changing to be more equitable. These new child support laws under AB 1755 take a more thorough account of each parent’s finances and the relative costs, particularly those associated with uninsured healthcare and childcare, in order to achieve a fairer distribution.
The lawyers of The Grey Legal Group have a wealth of experience in the areas of divorce and child custody law, and they understand how child support is calculated and how the update in laws will affect your child support payments. The Grey Legal Group can help you anticipate how your child support payments will be updated so that you can make proper plans and arrangements for your future budget allocation.
We have already written a blog that details the specifics of the new child support laws. However, in order for you to better understand the wide range of factors that go into calculating child support, we have also compiled this blog so that if you are dealing with child custody arrangements in California, you can better understand how and why your support orders will be altered, whether that means that you will be paying or receiving less or more.
How Child Support Is Calculated In California
In California, child support is calculated based on several factors, which we explore below. In order to understand the changes being made to child support laws, a simplified overview of how support was previously calculated dictated that a 50/50 split, or as close to 50/50 as possible, for each parent, was preferential.
Now, however, impacting factors are being taken into account so that the results of child support are more fair and better personalized to the needs of your children. These factors include but are not limited to:
- Income and income disparities: When determining child support payments, it is important that parents disclose the specifics of their income, including any supplementary income such as from bonuses or investments or savings accounts. Under these new laws, low-income parents should feel more fairly supported with some of the burdens of healthcare and childcare costs. Accurate income reporting allows for correct calculations of financial disparities between co-parenting couples, so that child support can reflect the amount that is needed to make sure each child is provided for.
Child support is intended to ensure kids are supported and there is no discrepancy in the care that they receive from each parent. Equal quality of life in the care of both parents is important so that children have stability. If you have recently experienced some change in income, such as if you have been promoted or been laid off, you can expect these facts to be reflected in how much child support you are responsible for.
- Assets and debt: Just like with income, parents should accurately report on assets and debt they have incurred. These factors can paint a more detailed picture of the financial situation of each household.
- Regular monthly expenses: Each household should calculate their regular expenditure, especially the expenditure that directly benefits the child such as food, clothing, healthcare, childcare, and education expenses. Bills, groceries, gas, and other regularly occurring payments should be included so that the court has a detailed account of the cost of living for each family. Detailing expenses will help develop an idea of the relative stability of each household and what each one is able to provide. It will also point to areas where one household might be deficient or where one household is contributing more toward a certain area.
For example, does one parent have to expend more gas to take the child to school? Are they driving further out of their way to drop the kid off and then get to work and thereby incurring a higher bill? Or, if for example one household is investing more in groceries, why is that? These questions can give a greater insight into how the child’s needs are being met.
- Custody arrangements: The type of custody arrangement you have with your co-parent will help determine how your child support payments will be affected since time with the child is relative to how much money you should be spending in support of them. Depending on the specifics of your custody arrangement, you could be responsible for paying less or you might be entitled to receive more. The circumstances of the children themselves are also dependent–for example, your calculation will be different if there is one child in the household versus multiple children.
- Exceptional circumstances: Finally, one other major factor impacting your new child support payments is any exceptional circumstances involving your child. For example, if you have a child with special needs who requires more medical care than the average child, this fact will impact your financial obligations. If there have been major changes in your family life that impact the child, such as if you have recently experienced an emergency like a house fire, you can expect any related expenses to factor into your child support calculation.
If you have any questions about how your child support will be altered or how certain circumstances will affect the final number, it is important to reach out to trusted legal counsel to review your options.
New California Child Support Laws And What They Entail
With these new child support laws on the books in California, you shouldn’t mistakenly believe that you will automatically be seeing an increase in payment across the board. Rather, depending on the circumstances of you, your ex, and the needs of your child, your support payment could go up or down. In fact, the new support calculation could result in up to a 20% swing in either direction.
The idea behind this new support calculation is to offer a more accurate calculation that will best reflect the support owed to the child while still maintaining an income supportable for the overall household. These new payment calculations are expected to be more fair to families and their children. They take into account a wider range of factors in raising and caring for your children, most particularly healthcare and childcare costs, the average costs of which have continued to increase since 2020.
Grey Legal Group Can Help With Your New Child Support Calculation
Understanding the differences in your child support payments going forward is the best way to optimize your budget and plan toward the expenses for your child. The Grey Legal Group has spent years practicing law related to child support and can help you understand your new calculations. Reach out to schedule a free initial consultation and learn how we can help you plan for a healthy financial future.
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- Understanding How Child Support Is Calculated Under California’s Laws - August 28, 2024
