During a divorce, many issues are intertwined, and the resolution of one is issue is in many cases, dependent upon the other. This is perhaps nowhere more true than with respect to the issues of child custody and child support. It is only understandable that regardless of the custody arrangement that the parties ultimately choose, parents want to ensure that they can adequately support their children as part of that arrangement. While the law requires that parents continue to support their children following a divorce, the custody arrangement that the parties choose (or that is ordered by the court) may have a significant effect on the amount of support that is to be provided. Although divorce may end a marriage, parenthood is forever. And regardless of how they may feel toward their ex-spouse, most parents truly want to support their children – out of love, and not simply because it is legally required. As a result, child support is often one of the less contentious issues that couples negotiate during a divorce. As most parents know, child support is a monthly payment, typically made by the noncustodial parent to the custodial parent to provide for the reasonable needs of the couple’s children. Under North Carolina law, this includes the biological children of the marriage, any children that the couple adopted together, and any children born to a relationship between the parties. A child support obligation is usually long-lasting, until the children reach the age of eighteen or are otherwise emancipated. As a result, it is more than worthwhile for most couples to truly spend the time thinking through what child support and custody arrangements might work best for your family – and the two are distinctly intertwined. In North Carolina, there are two primary ways that child support can be determined – either in an agreement, which the parents negotiate and enter into together, or by a court, based upon the state statutory guidelines. In this chapter, we’ll discuss both of those options – what they entail, the advantages and disadvantages of each, and how your custody arrangement might affect those determinations. Addressing Support by Agreement As with almost all issues the must be resolved during the divorce process, child support can be determined by the parties by agreement. If you and your spouse are capable of communicating effectively and with an open mind, and are committed to working together toward the best resolution of your issues for your family, addressing support obligations in a separation agreement offers many advantages. Choosing to set the support obligation yourselves provides more leeway to determine what works best for your family and your lifestyle. You can ensure that the agreement fits your family’s unique needs – even if those needs are different than those which are normally provided for under the legal guidelines. For example, in a separation agreement, the parties may decide that they want to extend support payments beyond the age of eighteen, address the obligation to pay for private school or college expenses, make payments on a particular timeline that works best for the parties, or implement any other number of specific conditions that work well for their particular circumstances. A second advantage of choosing to set the support obligation in an agreement is that not only do you have the flexibility to determine the specifics of support in the first place – you also have the freedom and flexibility to make changes to the agreement as your life situation changes. Of course, both parties will need to be in agreement about those changes, but as long as that is the case, the agreement can be rewritten or modified at any time to ensure that the support provided continues to work best for the family’s life circumstances. Yet another advantage of entering into an agreement is that generally, doing so means that couples will spare themselves a great deal of the expense and stress that they would likely have incurred by choosing to battle an issue out in court. For the most part during divorce, with respect to all issues, choosing to work together toward an agreement that works well for everyone involved is less contentious, and less costly. The effort is well worth it. Clearly, then, there are many advantages to choosing to address child support by agreement. The question then becomes, how to draft an agreement that best fits your family’s circumstances? If two parents do decide to enter into an agreement regarding child support, it can be helpful to consider the following advice when negotiating child support payments:
Remember, that the ultimate goal of your negotiations is to ensure that your children have the same financial support that they would have received if you had remained married. Spend the necessary time talking with your attorney in detail about your children’s lives – their needs, their regular expenses, their health issues, and the lifestyle they are accustomed to. Be honest with your attorney about your income, your expenses, and your goals for your children’s future. Most importantly, go into the negotiations with an open mind. Be willing to communicate openly and compromise if necessary, but don’t hesitate to stand up calmly and confidently for the things that are truly important to you. Court-Ordered Child Support As with all issues in a divorce, if the couple is unable to come to an agreement on their own regarding child support, a court will make the determination for them. Sometimes, depending upon the dynamics involved in a relationship and the animosity that may be present between the parties, having a court decide the key issues is simply the best choice. While child support can seem like a complex issue to those unfamiliar with the legal system, there are fortunately detailed guidelines in place to help courts make the determination as to the amount of support that is appropriate in any given case. The North Carolina Child Support Guidelines provide guidance to the court regarding support calculations, and can help parents roughly plan for and estimate what amounts they might be expected to pay. These guidelines are based on a shared income formula. The idea behind this method of calculating support is that child support should be an obligation that the parents share jointly – that is, that the children essentially receive the same percentage of their parents’ income that they would have received if the parents had remained married[1]. Also factored into the amount of support that is ultimately awarded is the custody arrangement that the parties have, as we will discuss below. As a court makes a determination with respect to support, a number of factors will be considered. Some of those factors include how much time the child spends in each parent’s household, which parent has primary custody, the income of each parent, and each parent’s ability to pay support. Other factors that the court might consider include:
Though in the vast majority of cases, courts use the North Carolina Child Support Guidelines in determining support obligations, there are some situations in which courts will deviate from those guidelines. Some of these circumstances include:
In those special situations, courts will typically make support determinations on the basis of the child’s actual needs and the expenses associated with those needs, as opposed to utilizing the formula set forth in the guidelines. In the majority of cases, however, families who have child support obligations determined by the court will find that the court determines those obligations using the state support guidelines. These guidelines apply statewide, and are revised at least every four years to adequately reflect cost-of-living increases. Typically, there are three worksheets used for calculating support under the guidelines:
As indicated by the differing worksheets, child support, when awarded by a court, is directly affected by the custody arrangement that the parties have. If the parents have an arrangement where one parent is the primary physical custodian of the children and the other parent has less than 123 nights with the children, the parent who has primary custody will receive the maximum amount of support available under the guidelines. On the other hand, if the parents have a split custody arrangement (a somewhat rare arrangement where one parent has primary custody of on child and the other parent has primary custody of the other child), child support may be drastically reduced, or may not be awarded at all, as each parent would be responsible for the day-to-day expenses of the child that lived in their home. In a third scenario, if the parties essentially have shared custody – meaning that each parent spends at least 123 nights with the children each year, the amount of child support awarded might decrease or increase depending upon the amount of time that each parent spends with the child. It is also important to keep in mind that even if you do have equal amounts of time with your children, if one parent makes significantly more than the other, support may still be awarded, because child support is intended to be paid proportionately to income. Clearly, the custody arrangement between the parties will have a significant effect on the amount of support awarded. Moreover, while the guidelines are generally adopted and used to calculate support, a court may choose to look beyond the guidelines and set a different amount if the particular and unique needs of the children require it. A court always has the obligation to do what is in the best interests of the children, and at times, that means looking outside of the guidelines at the whole picture of the child’s life to make a determination. Regardless of whether the court ultimately determines the support obligation or the parties choose to decide it by agreement, after it has been determined, North Carolina law provides that one spouse can pay the support amount directly to the other at the required times, if that arrangement works well for both parties. In other circumstances, however, an intermediary might be helpful, and in those cases, child support can be paid through the North Carolina Child Support Centralized Collections (NCCSCC), which will then send the support collected to the receiving parent, either through direct deposit or via a debit card. Some couples choose this option in order to have a document record of all support payments which are made from one parent to the other, if a dispute should ever arise. Beyond the Dollar Figure – A Look at the Emotions Behind Child Support and Child Custody Regardless of whether the support amount is awarded by the court or decided upon by agreement, it is important not to underestimate the level of emotion that might be involved in these decisions, and the reactions that those emotions might cause. So much of divorce is emotional, and perhaps nowhere is this more true than with respect to issues involving children. Divorce is a stressful time, and even when the divorce is over and the dust settles, emotions can still run high. It is important for all parties to remember that regardless of the ending of a marriage, the obligation to parent together for the good of your children remains. It is important, if you are the parent who is responsible for making child support payments, that you do so on time, and in full. Never withhold payment to “punish” the other parent – after all, the ones who are really being punished are your children. On the other side of the coin, if you are the parent who is the primary custodian and the other parent falls behind on their child support payments, do not withhold visitation privileges until the support is paid, for the purpose of “getting back” at the other parent. While this may be tempting, and while it may feel good in the moment, you are harming your children in the long run, and potentially placing yourself in a position to incur legal consequences as well. If you are not regularly receiving the support that is due, let child support enforcement authorities address the issue of non-payment, and speak to your attorney about possible remedies. Ultimately, when it comes to child support, the hope is that parents will always continue to do what is right and best for their children, regardless of their emotions or negative feelings toward the other parent. Both parents need to be realistic and practical about the custody arrangement they choose, and the support obligation they decide upon. Doing so is ultimately better for everyone in the end. Without question, the “nuts and bolts” of the child support process and its interplay with the custody arrangement that the parties have might seem confusing at first glance, and this is certainly understandable, particularly for those who are not legal professionals and who are unfamiliar with the process. The good news, though, is that an attorney who is well-versed in the law and who frequently handles divorce cases will be able to guide you through the process, and advise you as to how the law might apply to your particular circumstances. The value of such legal advice cannot be overstated, particularly when it comes to something as important as matters involving your children. Together, you can reach the resolution that is best for your family. [1] As a basic example, if, when the parents were married, they spent $1,000 per month on their children, and one spouse made 70% of the combined income, that spouse would be responsible for 70% of the support that the child would receive, or $700. Of course, there will be extraordinary expenses that may also factor into the calculation, but the idea, generally, is that parents continue to support their children in the same manner and in the same proportion as they would have prior to the divorce. If you would like to arrange a child custody and child support consultation with an experienced child custody lawyer in Huntersville, NC, contact Adkins Law.
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As children grown and as life circumstances change, children’s needs may change too. In some cases, one parent or the other loses a job. In other cases, unanticipated medical expenses arise, making it difficult to make ends meet. In still other cases, a child may be diagnosed with a learning disability that requires special education at a private school. Ultimately, one of life’s truths is that we should expect the unexpected. In those circumstances, one of the parties, or both parties, may wish to modify the existing support obligation.
If the parties have agreed upon a support obligation as part of their separation agreement, then they may modify the agreement as they wish, provided that both parties are on the same page, and are willing to do so. In that circumstance, the parties would simply need to revise and redraft the agreement to fit their current needs, and have both parties sign the updated copy. When a modification of existing court-ordered child support is sought, however, the court must order the modification as well. In those instances, the party seeking the modification must show that a substantial change in circumstance has occurred which warrants the modification. Typically, if three years have passed and the child support guidelines have been modified based on cost of living to indicate an increase in the amount due, a substantial change in circumstances is presumed. When less than three years have passed, however, either child support services or the court must verify that a change of circumstance for either parent occurred of a nature sufficient to render the case eligible for review. Examples of those changed circumstances might include: o Changes in the physical custody arrangement of the children; o Changes in the children’s needs; o Significant and substantial changes in a parent’s income. If a party is able to prevent evidence of these changes, they may qualify for review of the current support obligation and modification as warranted. Whether or not a particular change in circumstances may warrant modification is a matter to be discussed with qualified and experienced counsel, who will be able to best advise you as to your particular circumstances. If you need to speak with an experienced family law attorney, please contact Adkins Law to arrange a consultation. In accordance with the federal Child Support Enforcement Act, each state has developed specific guidelines to calculate a range of child support to be paid, based on the parents’ respective incomes and expenses. Each state’s guidelines vary considerably, meaning that in virtually identical situations, the child support ordered in one state may be far more or less than that ordered in another state. Judges in some states are allowed a considerable amount of leeway in setting the actual amount, while other states have very strict guidelines that leave judges with very little leeway.
Factors Considered Regardless of the judge’s latitude, there are statewide guidelines put in place that specify factors that must be considered in determining who pays how much child support. These factors include:
When one parent does not work When income is received on an irregular, non-recurring, or one-time basis, the court may average or prorate the income over a specified period of time or require an obligor to pay as child support a percentage of his or her non-recurring income that is equivalent to the percentage of his or her recurring income paid for child support. Potential or Imputed Income: If the court finds that a parent’s voluntary unemployment or underemployment is the result of the parent’s bad faith or deliberate suppression of income, child support may be calculated based on the parent’s potential income. If a parent has no recent work history or vocational training, potential income should not be less than the minimum hourly wage for a forty hour work week. Third party consideration Guidelines do not apply to child support orders against stepparents or other persons or agencies who are secondarily liable for child support. They may, however, be a small factor to consider in offsetting some expenses that a parent would have otherwise been responsible for. Maxed out guidelines There are cases in which the parents’ combined adjusted gross income is more than 300,000 a year. When income exceeds this threshold, the normal child support schedule is maxed out. Inn cases that involve very high incomes, the courts will need to set the award on their own. When setting this award, the court must ensure that the amount of the award meets the reasonable needs of the child. If you are not receiving child support, or if your ex has stopped making child support payments, and you need to speak with a family law attorney, contact Adkins Law. We have locations in Huntersville and south Charlotte. The North Carolina Court of Appeals addressed the issue of retroactive child support in the case of Loosvelt v. Brown, on July 15, 2014. Mr. Loosvelt, brought a lawsuit against Ms. Brown for child custody and to establish child support obligation. Ms. Brown then brought counterclaims including one for retroactive child support. The trial court awarded over $7,000 per month in child support along with around $40,000 in retroactive child support including in excess of $5,000 in pre-birth nursery expenses and maternity clothes. The Court of Appeals addressed the issue retroactive child support and clarified the law on the expenses that can be recovered before a child’s birth. The court held that "as the legal obligation arises when the child is born, expenses incurred prior to the child's birth cannot be considered as retroactive child support. The only exception to this is in the North Carolina General Statute §49-15 which allows for "medical expenses incident to the pregnancy and birth of the child." Furthermore, a parent may seek retroactive child support for child support prior to filing the complaint. The Statute of Limitations does limit (NCGS § 1-52(2)) limits a parent to know no more than three years of retroactive support. The parent seeking retroactive child support must present evidence of past expenditures made on behalf of the child that were reasonably necessary. If you are filing an action for child support, be sure to talk with an attorney about making a claim of retroactive child support. At Adkins Law, we believe in providing top-notch, quality legal services at affordable prices. If you need to speak with an attorney regarding a family law matter, traffic citation or issue, or for your estate planning needs, contact Adkins Law to arrange a consultation. Adkins Law has offices in Huntersville and Ballantyne for your convenience. Need to speak with a family law attorney? Contact Adkins Law. Adkins Law provides legal representation for family law matters such as separation, divorce, child custody, child support, equitable distribution, and spousal support. We have locations in Huntersville and Ballantyne for your convenience. By Elspeth Crawford Wage garnishments are governed by an array of state and federal laws, and employers are often confronted by demands from multiple garnishors who all insist that they be paid now. Although the law requires that a significant amount of information be sent to employers along with a demand for wage garnishment, there are some rules that may not be explained by that material. How Is The Garnishment Obtained? In a nutshell, here's how wage garnishment works. A person or entity obtains a judgment in court against an employee or a government agency determines that an employee owes a debt to them. Typically, the judgment relates to child support, unpaid taxes, or student loans. The person or entity to whom the debt is owed is the "garnishor." The employee is the "debtor." The garnishor then applies to a court (if it is a private entity) or goes through an administrative process (if it is a government agency) in order to get a "writ" for garnishment of wages. The writ is essentially the document which gives the garnishor the green light go go after the debtor's wages. That writ is delivered to the employer, as the entity controlling what is paid to the debtor, making the employer the "garnishee." When must an employer start paying on the writ? An employer is required to begin paying on the writ when it is received, unless there are other writs with higher priority (see below). An employer must return a statutory response form within seven days of receiving the writ whether or not the employer will start paying on the writ immediately. Payments are made every time that the employee gets paid and should be prorated if the writ was not in effect for the full pay period. Can an employee challenge a writ? The employee receives a copy of the writ of garnishment sent to the employer. The time period varies from state to state in which the employee may challenge the writ by sending a challenge to the garnishor. Once the employer gets notice that there is a challenge,the employer must not stop paying. Instead, the employer should send payments (on the same schedule) to the court that authorized the writ, rather than the garnishor. The court will hold the money until the challenge is resolved. Was the writ sent to the proper employer? The statutory response form contains several grounds pursuant to which an employer may contest the payment demanded in the writ. The most common objection is that the garnishee is not in fact the employer of the debtor. The employer should contact legal counsel if it has questions about whether it is the proper garnishee to ensure that it is complying with all legal requirements. How much can be taken out of the employee's wages? There is a cap on wage garnishment of 25% of take-home income. In addition, there is a "floor" level of income protected from garnishment that is based on a minimum wage per week. The statutory garnishment calculation worksheet that will accompany the writ will guide the employer through the proper calculations. When can the employer stop paying on the writ? Generally, writs of garnishment expire, whether they have been fully paid or not, within a time set by state law. However, writs issued by a county or county agency, and federal student loans writs, do not expire until paid in full. In general, writs may be "continued" only by a new writ; that is, the garnishor has to supply the employer with a new wage garnishment order in order to continue having the employee's pay garnished. The 90-day clock does not start running until payment on the writ has started. What if there are multiple garnishments? Most of the confusion surrounding wage garnishment occurs when an employer receives more than one garnishment for an employee. The general rule is "first in time, first in right." That is, the first garnishment order gets priority and gets paid first. If the first garnishment is taking the full amount allowed -- 25% -- then the second writ has to wait until the first writ expires (varies between states). However, if the first writ is nottaking the full 25%, then the employer must start paying on the second writ at the amount below 25% that is not being taken. One notable exception is for child support garnishments. These take priority over other garnishments, and will "bump" garnishments that are currently being paid. How does the employer handle federal student loan garnishments? There are special rules for federal student loans. Federal student loan garnishment orders are not subject to state law. However, federal student loan garnishment orders are capped at 10% of income. Consequently, if another garnishment writ comes in while a federal student loan garnishment is being paid, the employer must begin paying on the second writ at 15% of income. If the employee is being garnished on another writ at 25% when the federal student loan garnishment order comes in, the employer does not need to begin paying on the student loan garnishment. In that event, however, the employer should contact the agency that issued the student loan garnishment order, or contact the Department of Education student loan compliance center at (404) 562-6013 and follow up with a letter to: U.S. Department of Education Administrative Wage Garnishment Compliance Branch 61 Forsyth Street, Room 19T89 Atlanta Federal Center Tower Atlanta, Georgia 30365. The compliance center's advice will most likely be to begin paying on the student loan garnishment when the prior writ expires under state law. How does the employer handle tax and child support garnishments? Complications arise when IRS tax levies or child support garnishments conflict with each other or other wage garnishment orders. IRS tax levies and child support garnishments typically take priority over other garnishments, including federal student loan garnishments. An employer should contact the issuing agency (the IRS or the child support enforcement office) for advice specific to the type of garnishments in conflict. If questions remain, the employer should contact legal counsel to ensure that it is not later held liable to both the employee and the garnishor for failing to properly assign priority among claims or for over- or under-paying the garnishments. Garnishments are an extra burden on an employer, but it is essential that they be dealt with correctly. Otherwise, an employer could be held liable both to the employee and the garnishor for any errors. However, seeking and taking advice can make most garnishments a routine part of personnel management. Finally, an employer should remember that, under federal and state law, an employee cannot be discriminated against or terminated because of wage garnishments. |
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