HOW IS CHILD SUPPORT CALCULATED?

A frequent question that parties to a divorce have is how is child support calculated? How much will I pay or how much will I receive? This is an important consideration for parties going through a divorce because it can have a significant impact financially – whether you are paying child support or are receiving it. The goal of child support is to normalize the financial resources available to the children available in each home. Essentially, the idea is that the child does not go without in one home simply because that parent might earn less money. 

In Colorado, child support is determined pursuant to the child support guidelines contained in the statutes. It takes into consideration a few different factors: each party’s gross monthly income (not net), any applicable credits for health care for the children or childcare for the children, and most importantly, the overnight schedule. There may be other factors that are taken into consideration such as if either party has a child from another relationship or if the child has specific, consistent and ongoing expenses that are factored into the calculation. One other critical factor pertains to spousal maintenance – if it is paid to a party, the amount is deducted from gross monthly income of the payor and it is added to the gross monthly income of the person receiving it.

One of the variable factors involved is each party’s gross monthly income, in particular for self-employed or commission-based employees. These types of individuals often have fluctuating income and so it can be difficult to determine what their income is. For self-employed individuals, Colorado law dictates that their personal gross income for child support is their business revenue, less reasonable and necessary business expenses. This can lead to some dispute. For commission-based individuals, Courts will often look to take some type of average of their income – whether that be a few months, a year or several years, to try and determine what their income is.

Given the complexity of this issue, and its critical nature, it is important to hire component counsel to help in your case. Palmer Family Law is here to help with these issues.