Texas Family Law: Calculating Child Support

Today, we are going to discuss how Texas family law judges determine the monthly dollar amount of child support.
 
To understand how child support is calculated, one first has to understand the concepts of ‘resources” and “net resources” as defined under Section 154.062 of the Texas Family Code.
“Resources” include the following five types of income:
(1) 100 percent of all wage and salary income and other compensation for personal services (including commissions, overtime pay, tips, and bonuses);
(2) passive income such as interest, dividends, and royalties;
(3) self-employment income;
(4) net rental income (which is defined as rent after deducting operating expenses and mortgage payments, but not including noncash items such as depreciation); and
(5) all other income actually being received, including severance pay, retirement benefits, pensions, trust income, annuities, capital gains, social security benefits other than supplemental security income, VA disability benefits other than non-service-connected disability pension benefits, unemployment benefits, disability and workers' compensation benefits, interest income from notes regardless of the source, gifts, prizes, spousal maintenance, and alimony.
The term “Resources” DOES NOT include:
(1) return of principal or capital;
(2) accounts receivable;
(3) benefits paid in accordance with federal public assistance programs; or
(4) payments received for the foster care of a child.
Once an amount is determined for “Resources”, the family law judge has to deduct the following 6 items to arrive at a “Net Resources” figure:
(1) social security taxes;
(2) federal income tax based on the tax rate for a single person claiming one personal exemption and the standard deduction;
(3) state income tax;
(4) union dues;
(5) expenses for the cost of health insurance, dental insurance, or cash medical support ordered by the court for the payor’s child; and
(6) if the payor does not pay social security taxes, then mandatory retirement plan contributions are also subtracted out.
Okay, now let us talk briefly about a related concept known as “imputing of income” before we then move on to how the “net resources” figure is used to calculate monthly child support.
If the actual income of a person who owes child support is significantly less than what he/she could earn because of intentional unemployment or underemployment, then a court may apply the support guidelines based on the EARNING POTENTIAL of said obligor rather than his or her actual income. SEE Tex. Fam. Code § 154.066(a).
IT IS INTERESTING to note that a family law judge is not required to first find that voluntary unemployment or underemployment is for the primary purpose of avoiding child support before using an obligor’s earning potential when figuring support. The person who is owed the support must simply show that the actual earnings of the obligor are “significantly less” than his earnings potential.
When it comes to imputing income, remember that a divorce court may not add any portion of the net resources from a new spouse to arrive at the net resources of an obligor spouse when calculating child support.
OKAY, now let move on to applying the guidelines for calculating support. There are separate guidelines for when the MONTHLY NET Resource amount exceeds $9,200 vs. when it is equal to or less than $9,200. For the purposes of this video we are only going to discuss the latter situation.
If the obligor’s monthly net resources are $9,200 or less, the court shall presumptively apply the following schedule in CALCULATING SUPPORT:
For:
1 child 20% of obligor’s net resources
2 children 25% of obligor’s net resources
3 children 30% of obligor’s net resources
LINK TO MY WEBSITE:
www.askattorneyamin.com/
HELPFUL LINKS:
Link to Amin’s Digital Download Store - find FREE sample pleadings, motions, responses, notices, briefs, summary judgment filings, objections, etc:
payhip.com/askattorneyamin
DISCLAIMER: The information communicated on this channel is for educational, hypothetical or theoretical discussion purposes only. It is not legal advice. It might not reflect the law specific to your jurisdiction or locale. Furthermore, it is not guaranteed to be accurate, complete, or correct. For actual legal advice, please consult in person with an attorney of your choice. You should do this before acting [or failing to act] based on any communication received from this channel or its owner. Mr. Amin only provides legal advice or services after the execution of a fee agreement containing his handwritten signature and the handwritten signature of his client(s). Your communications on this channel are not protected by the attorney-client privilege.
NOTE REQUIRED BY STATE BAR ETHICS RULES: This channel is owned and operated by attorney Mayur Amin; whose principal office is located in Grand Prairie, Texas.