If you are going through a divorce in the United States and have a minor child, child support will likely be an important issue in your case. What determines the amount of child support? In many states, the calculation is based on what is known as the Income Shares Model.
What Is the Income Shares Model for Determining Child Support?
If you are going through a divorce or separation and have a minor child, you may eventually be required to pay child support or be entitled to receive it.
Child support is generally considered a right belonging to the child rather than something parents can simply waive by agreement. Although parents may reach agreements regarding support, those agreements are typically subject to court approval and applicable state child support laws.
So, how does a court determine the appropriate amount of child support?
The Income Shares Model
Many states use the Income Shares Model, or a variation of it, when calculating child support. The general idea behind this model is to estimate the amount parents would have spent supporting their children if they were living together and then divide that financial responsibility between the parents according to their respective incomes and other factors.
Not every state uses this model. Some states, including Texas, use a different approach. Because child support formulas and guidelines vary considerably by jurisdiction, it is important to apply the rules of the state handling the case rather than relying on a general nationwide formula.
Calculating Child Support Under the Income Shares Model
Although the specific calculations vary by state, an Income Shares Model calculation may generally involve the following steps.
Step 1: Determine the Basic Child Support Obligation
The first step is typically to determine the parents’ combined income and consult the applicable state’s child support guidelines or schedule.
The guidelines generally estimate how much parents at a particular income level would spend supporting a certain number of children.
What qualifies as “income,” as well as which deductions or adjustments are permitted, depends on state law. Existing child support obligations, spousal support, healthcare expenses, childcare expenses, and other factors may also affect the calculation.
How Child Support Is Calculated in Texas
Texas generally does not use the Income Shares Model. Instead, Texas child support guidelines generally calculate support by applying a percentage to the paying parent’s—or obligor’s—net resources.
For example, subject to statutory limits and other applicable rules, guideline support for children before the court generally begins at:
- 1 child: 20% of net resources
- 2 children: 25%
- 3 children: 30%
- 4 children: 35%
- 5 children: 40%
Different rules may apply when the obligor has children in more than one household, when income exceeds statutory guideline limits, or when other circumstances justify a different amount.
Step 2: Determine Each Parent’s Share of the Income
Under an Income Shares Model, each parent is generally responsible for a portion of the basic support obligation based on that parent’s share of the combined income.
For example, if one parent earns 70% of the parents’ combined income, that parent may generally be allocated 70% of the basic child support obligation before other adjustments are considered.
Step 3: Calculate Each Parent’s Obligation
The next step is generally to multiply each parent’s percentage of the combined income by the basic child support obligation established under the state guidelines.
For example, if the basic obligation were $1,664 and one parent were responsible for 55%, that parent’s share would be $915.20. A parent responsible for the remaining 45% would have a share of $748.80.
These figures are only examples. Actual child support calculations depend on the law and guidelines applicable to the particular case.
Step 4: Consider Parenting Time and Other Adjustments
Depending on the state, the amount of parenting time each parent has may affect the final child support calculation. Some states have specific formulas for shared or substantially equal parenting arrangements.
Other expenses, including health insurance, uninsured medical costs, childcare, and certain educational expenses, may also affect the final obligation.
What to Expect in Your Case
The Income Shares Model can provide a framework for understanding how child support is calculated in many states, but there is no single nationwide formula.
Texas uses its own statutory guidelines based primarily on the obligor’s net resources, and courts may consider additional factors when determining whether guideline support is appropriate.
Once a child support order is entered, it is important to comply with its terms unless and until the court modifies the order.
If you need personalized guidance regarding child support or divorce, contact Albizu Law at 512-861-5638 to schedule a consultation. Our team can help you understand how the applicable child support rules may affect your family.
