Monday, July 1, 2013

Child Support Increase for High Earners

On September 1, 2013 the cap increases to $8,550 net.  Currently, any net income over $7,500 is not  used in calculating child support for most people.  If your income exceeds the cap, the burden shifts to the other parent to prove additional funds are needed to support the child's expenses (private schools, travel, a nanny, etc.)  Child support is calculated based on the number of children, health insurance premiums and your monthly net income.  If you are at the top end of the pay scale, September 1 may mean an increase in your current child support.  An excellent article explaining this adjustment by the Texas Legislature appears here.

The adjustment is not automatic.  The parent seeking an increase must file a petition for modification and ask the court to set child support per the new guideline amount. Defenses to an increase in child support must be carefully discussed with your attorney. Bonuses and over-time are topics that should be addressed as well as lump sum pay-outs or cashing out 401Ks.

Be aware.  If you fit into the category of a high earner, you should consider making an appointment with an attorney whose law practice specializes in child support cases.

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