Child support in California is governed by a complex statutory framework designed to ensure that children receive adequate financial support from both parents. At Barsamyan Family Law APC, we frequently assist clients in Beverly Hills and the greater Los Angeles area in navigating these calculations. Understanding the mechanics of the statewide uniform guideline is essential for parents anticipating a child support order.
The Statewide Uniform Guideline Formula
California Family Code Section 4055 establishes the statewide uniform guideline formula for calculating child support. The formula is mathematically complex and is typically calculated using certified software programs, such as DissoMaster. The Judicial Council has approved guideline support software including DissoMaster, Xspouse, and Suporttax. The use of certified software is standard but not mandatory. The primary components of the formula include the parents' respective net disposable incomes and the approximate percentage of time the higher-earning parent has primary physical responsibility for the children.
The foundational principle, as outlined in Family Code Section 4053, is that both parents are mutually responsible for the support of their children, and that each parent should pay for the support of the children according to their ability.
Defining Gross Income
A critical step in the calculation is determining each parent's gross income. Under Family Code Section 4058, gross income is defined broadly to include income from whatever source derived. This encompasses salaries, wages, bonuses, commissions, royalties, dividends, pensions, and trust income. It may also include business income, which is defined as gross receipts minus the expenditures required for the operation of the business.
For high-net-worth individuals and business owners in Los Angeles, determining gross income can be highly contentious. Courts have the discretion to consider earning capacity in lieu of actual income if doing so is in the best interest of the children, particularly if a parent is voluntarily unemployed or underemployed. Family Code section 4058(b) provides that the court may consider earning capacity in lieu of income if consistent with the best interests of the children. The Marriage of Regnery / Marriage of Cohn three-part test (ability, opportunity, willingness) is the standard framework.
Timeshare Percentage
The timeshare percentage represents the amount of time the higher-earning parent has primary physical responsibility for the child. This is not merely a calculation of overnight visits; it involves a detailed analysis of the actual time spent with the child. An accurate timeshare calculation is vital, as an increase in the higher earner's timeshare generally results in a decrease in their child support obligation.
Mandatory and Discretionary Add-Ons
In addition to the base guideline child support amount, courts must order certain "add-ons" under Family Code Section 4062. Mandatory add-ons include childcare costs related to employment or reasonably necessary education or training for employment skills, as well as the reasonable uninsured health care costs for the children.
Courts also have the discretion to order additional support for costs related to the educational or other special needs of the children, and travel expenses for visitation. These add-ons are typically apportioned between the parents based on their respective net disposable incomes.
Deviations from the Guideline
The guideline amount is presumed to be correct under Family Code section 4057(a). That presumption may be rebutted by admissible evidence under one of the specific factors enumerated in section 4057(b), including that application of the formula would be unjust or inappropriate due to special circumstances. Common grounds for deviation include where a parent has an extraordinarily high income and the guideline amount would exceed the needs of the children, or where the parent with primary physical responsibility is contributing a disproportionate share. When the court deviates from guideline, it must state in writing or on the record the guideline amount and the reasons for the deviation (Family Code section 4056).
For high earners in Beverly Hills, the extraordinarily high-income exception is frequently litigated. The burden is on the high earner to demonstrate that the guideline amount is excessive and that a lower amount will still adequately meet the children's needs.
The Duty to Disclose Income Changes
Parents have an ongoing duty to disclose material changes in their income. If a parent experiences a significant increase or decrease in income, or a change in the timeshare arrangement, it may warrant a modification of the child support order. Failing to disclose such changes can lead to retroactive modifications and potential sanctions.