January 11, 2020
January 11, 2020
A parent leaving a high net worth marriage will naturally have concerns about receiving adequate monthly income to maintain a comparable lifestyle for the children. A high-earning parent on the other side of the equation might be on guard against unreasonably high child support orders. Divorce lawyers in Indiana can inform you about the State child support guidelines that direct the calculation of child support. These guidelines measure income, health insurance expenses, and overnight parenting time. A Carmel divorce attorney from Webster & Garino will advocate for your needs so that a child support order reflects parental income and expenses accurately and accounts for particular circumstances that often apply in high net worth divorces.
Child Support Guidelines and Income Credits
State law considers the income of both parents when determining child support. After identifying parental income, the law grants credits that adjust the totals before applying the child support formula. Overnight stays that children have with a noncustodial parent create income adjustments because the parent would be paying expenses for the children while they are visiting in the home.
Courts also recognize that a parent paying for a child’s health insurance should receive credit for that expense as well. Work-related childcare expenses also produce credit. A parent who already has existing child support orders for other children will receive an income adjustment as well.
The state has designed the child support formula to continue the economic circumstances that children enjoyed before their parents’ divorce. On the higher end of the income spectrum, however, a purely formulaic determination might end up reducing the financial comfort of children. The law grants a judge the discretionary power to make a child support order outside of the guidelines if doing so would represent a just decision for the children. Such a particular order must contain a written explanation for the deviation from guidelines.
For example, a custodial parent whose income is substantially lower than the noncustodial parent after the divorce might find maintaining a child’s previous lifestyle challenging. The child might have been attending a private school or participating in costly extracurricular activities. The typical application of the child support formula might result in child support payments in Indiana that do not fully take into account these needs.
To correct this situation, courts have the capacity to consider extraordinary expenses, like private schooling. Before making a decision, a judge will evaluate the reasonableness of the expense and whether only one or both parents want the children to attend private school.
Divorce Settlement Terms
Divorce lawyers in Indiana working on high net worth divorces strive to broker divorce settlements that build a strong foundation for the financial stability of children. A custodial parent with limited earning abilities might benefit from a solution that includes spousal support during a rehabilitative period. Additionally, an equitable settlement relies on the full disclosure of all marital assets. A Carmel divorce attorney will work hard to uncover all assets and sources of income to ensure the proper calculation of child support payments as well as the fair division of the marital estate.
Contact an Attorney
An attorney can answer your questions about child support payments in Indiana and take action to protect your rights during a divorce. Contact us today to set up an appointment.
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