Child Support
Child Support
Let’s face it, raising kids is expensive! Outside of the amount you may pay or receive for child support, there are other costs that are associated with raising your child, for example school fees, activities, health insurance, etc. All parents want to ensure the amount they are paying or receiving for child support is the correct amount.
In Colorado child support is for the benefit of the child. It is intended to keep the child in the same position as if the family was intact. There is a presumptive amount of child support that is calculated based on the number of overnights each party has with the child, each parent’s gross income, and some child related expenses, such as health insurance and daycare expenses.
What is the Primary Challenge in the Calculation of Child Support?
One of the largest obstacles in calculating a fair and reasonable child support amount is determining the party’s gross income. This becomes particularly complex with unconventional income or variable, like small businesses earnings, bonuses, commissions, or variable compensation.
Another challenge arises when one party is either unemployed or underemployed (working less than full-time). In such cases, an income is imputed to that party. The contention typically revolves around determining the appropriate level at which the amount should be set.
Child-Related Expenses
There may be other expenses that you may have to share with the other parent outside of a child support award. A child support payment may not include extra-curricular activities, medical expenses (not covered by insurance), and mandatory school fees. These expenses may be shared equally by the parents or split in proportion to their respective incomes.
Modification of Child Support
Child support is always modifiable in the future because incomes of the parents and expenses for the children change. Child support may be modified up or down, or the paying party may change. To qualify for a modification of child support in Colorado there must be at least a 10% change from the current support amount. There is no time limit on when a party can file a modification, you just need to prove a substantial and continual change, defined as more than 10% change in the current amount of child support and the reason for the change must be continual.
One consideration that may help you decide if you need legal assistance for a child support modification is to ask yourself, is the amount to gain less than the cost of litigation. One mistake people have made is spending more on litigating a child support modification than would be gained if successful. It is always recommended to consider a cost-benefit analysis. The amount you spend to bring a modification should be less than the amount you would save in payments or receive in payments.
Unfortunately, you cannot control how the other party spends any child support amount. Meaning you cannot condition the funds to go to pay for clothes or other necessities a child may need.
We have experience in assisting clients with the follow family law issues:
Determining “gross income” when one party earns a substantial amount from over-time
Determining self-employed income, separating the real from the text
Methods employed to find hidden income sources
Determination of proper imputed income
If you would like to discuss information regarding your child support obligations, contact us.