Income Shares – 2006

Income Shares – 2006

Getting Started • Only one worksheet is needed to calculate support, regardless of the parenting situation(s) represented. • Support for 50-50 situations can now be calculated on same worksheet with standard and split situations. • In non-parent caretaker situations, the same worksheet can be used to calculate support for both parents.

Part I - Identification • Will now permit entry of a mother, father, AND non-parent caretaker. • When necessary, 2 docket numbers can be entered, separated by a forward slash ( / ).

Part I - Identification • The program will validate based on the fields entered, e.g., if no mother is entered in Part I, no data should be entered for mother on the rest of the worksheet . . . and vice versa.

Part I - Identification • Parenting Designations – • If a non-parent caretaker has been identified, any parent will always be designated as an ARP. • In 50-50 situations, the mother will always be PRP unless combined with a standard situation in which the Father is PRP. • Equal + Split = Split

Part I - Identification • Parenting Time • For each parent / non-parent caretaker identified, a number of days must be entered, even if the number is zero. • All parenting time for each child MUST now add up to 365.

Part I – Identification • “Days” – The amended definition requires more than 12 hours within a 24-hour period, rather than a calendar day, and will presume the necessary expenditure of resources - Judicial discretion will be permitted in appropriate situations – Rules will continue to allow either parent to argue that the PTA is not appropriate in their particular situation.

Part I - Identification • And look! There’s a new button – • In addition to the “Clear Worksheet” button, there is now a “Clear All Worksheets” button that will clear both the Child Support Worksheet and the Credit Worksheet.

Part II – Adjusted Gross Income • Column Designations • Column A – for Mother • Column B – for Father • Column C – for Non-Parent Caretaker – applicable in Parts III & IV only • Totals previously appearing in Column C have either been relocated or eliminated

Part II – Adjusted Gross Income • Line 1a – Adds onto a parent’s gross income the amount of any Social Security benefit received by a child on the parent’s account – applies to both parents. • Line 1c – Provides a subtotal for gross income plus the social security benefit, less self-employment taxes paid.

Part II – Adjusted Gross Income • Rule Changes – • Clarification of the rule for imputing income – • Income should only be imputed if: • There is a finding of willful and voluntary unemployment or underemployment; • There is an absence of reliable evidence of income; or • The parent owns non-income producing assets to which a reasonable rate of return can be imputed – new provision • Clarifies that “no reliable evidence of income” (for which median gross income is used) is a different consideration than willful and voluntary under or unemployment. • Median gross income figures have been updated based upon the most recent census information – i.e., $ 36,369 for males and $ 26,989 for females. • Specifies that income should not automatically be imputed to a stay-at-home parent.

Part II – Adjusted Gross Income • Rule Changes – • Calculation of Other Child Credits – • In-Home Children – definition now includes children living 50% or more of the time with the parent claiming credit • Not-In-Home Children • Now includes payments made pursuant to pre-existing orders • May now consider in-kind remuneration • Only changes to Credit Worksheet

Part III – Parents’ Share of BCSO • Line 4 – the full BCSO allotted to the household of the primary parent - obtained from the Child Support Schedule according to the parents’ combined AGI and the number of children for whom support is being calculated – • The same line will be used for all parenting situations. • In standard parenting, an amount will be entered only in the column of the PRP. No amount will be entered in the ARP column. • In split parenting, an amount will be entered for each parent as a PRP. • In 50-50 situations, the amount will be placed in the Mother’s column, unless combined with a standard situation in which the Father is PRP. • When there is a non-parent caretaker, the BCSO amount will always be entered in Column C. • BCSO will be a minimum of $100 for any combined AGI greater than zero.

Part III – Parents’ Share of BCSO • Line 4a – Share of BCSO owed to other parent – ARP’s pro-rata share of the amount entered on Line 4 – • In standard parenting, the PRP’s amount on this line will be zero. • In split parenting, and with 2 parents and a non-parent caretaker, an amount will be entered for each parent as an ARP. • In 50-50 situations, the Mother’s amount on this line will be zero unless combined with a standard situation in which the Father is PRP – then the Father’s amount will be zero.

Part III – Parents’ Share of BCSO • Line 5 – Each parent’s average parenting time – • In standard parenting, the average for the ARP will include the children listed in Part I of the Worksheet, except for the children living with each parent 50% of the time. • In split parenting, the average for each parent will include all children for whom the parent is the ARP, except for the children living with each parent 50% of the time. • Line 5a – Equal Parenting Time – • 182.5 will be entered whenever a 50-50 parenting situation is included in the support calculation. • Will always appear in Father’s column unless combined with a standard situation in which the Father is PRP. • If the PTA is not applicable to a parent, “N/A” will be entered for that parent on Lines 5, 5a, and 6.

Part III – Parents’ Share of BCSO • Line 6 – Parenting Time Adjustment (PTA) • In standard parenting situations, the PTA will appear in the column of the ARP. • In split parenting situations, and when both parents are present with a non-parent caretaker, both parents are eligible for the PTA in the role as ARP. • In 50-50 situations, the PTA is assigned to the Father, except in standard parenting situations in which the Father is the PRP. • When combined with another parenting situation, the PTA for a 50-50 situation is calculated separately. For Example – For a case with one 50-50 child and 2 standard children, the PTA for 2/3 of the BCSO would be calculated based on the average parenting time of the two standard children, and the PTA for 1/3 of the BCSO would be calculated based upon 182.5 days for the one 50-50 child.

Part III – Parents’ Share of BCSO • Per Diem Decrease • For more than standard visitation – Begins at 92 days • Accounts for child-rearing expenses in the household of the PRP as well as the additional expenses incurred by the ARP • Requires parents to pay his/her pro-rata share of all child-rearing expenses in both households • Will result in a zero obligation for basic expenses when the parents have equal income and each parent has 182.5 days of parenting time • May result in a PRP obligation when the ARP has a large share of parenting time and the PRP has a larger share of the combined income • A different calculation will be utilized when the PRP is a non-parent caretaker since no share of child-rearing expenses is owed

Part III – Parents’ Share of BCSO • Process • 2/182.5 = .0109589 = standard per diem • .0109589 times No. of days of PT = variable multiplier (VM) • VM times BCSO = Adjusted BCSO • Adjusted BCSO – BCSO = ARP’s additional child-rearing expenses • Times PRP’s PI = PRP’s share or additional expenses = PTA • ARP’s share of BCSO – PTA = ARP’s adjusted BCSO

Part III – Parents’ Share of BCSO • Example • BCSO = $1000, ARP’s PI = 60% • ARP’s BCSO = $600 • PT = 140 days • 2/182.5 = .0109589 • .0109589 x 140 = 1.534246 • 1.534246 x 1000 = $1534.25 • $1534.25 – $1000.00 = $534.25 • $534.25 x 40% = $213.70 • $600 – $213.70 = $386.30

Part III – Parents’ Share of BCSO • Per Diem Increase • For less than standard visitation • Begins at 68 days of parenting time (PT) • A penalty – does not represent an adjustment to child rearing expenses • Process • 69 – No. of days of PT • Divided by 365 = percentage increase • Percentage increase times parent’s share of BCSO = dollar increase • Added to BCSO

Part III – Parents’ Share of BCSO • Example • ARP’s BCSO = $600 • PT = 64 days • 69 days – 64 = 5 days • 5/365 = .0136986 • .0136986 x $600 = $8.22 • $8.22 + $600 = $608.22

Part III – Parents’ Share of BCSO • Line 7 – Adjusted BCSO - Share of BCSO owed to the other parent, adjusted for parenting time • In most standard parenting situations, and non-parent caretaker situations with just one parent, only the ARP will owe an amount on Line 7 • In most split parenting situations, and when both parents are available in non-parent caretaker situations, both parents will owe an amount on Line 7 • Application of the PTA could result in a negative amount on Line 7 – • If the PRP has a larger income and the ARP has a large share of parenting time • Any negative amount shall be entered as a positive obligation in the column of the other parent • In standard parenting, will result in a zero obligation for the ARP • In split parenting, will result in an obligation for only one parent • If the parents have the same income and equal parenting time, each parent’s share of the BCSO will be zero

Part IV – Additional Expenses • Line 8b – Recurring Uninsured Medical Expenses – • Will now pro-rate automatically according to PI • Non-recurring expenses still need to be addressed in order

Part IV – Additional Expenses • Line 10 – Share of additional expenses owed – Each parent’s pro-rata share of the total additional expenses being paid by the other parent.

Part IV – Additional Expenses • New Line 11 – Adjusted Support Obligation (ASO) – • For each parent, Line 10 (share of additional expenses owed) added to Line 7 (share of BCSO) • For each parent, the amount represents an actual obligation owed to the other parent or to the non-parent caretaker

Part IV – Additional Expenses • Reminders – • Both parents and / or non-parent caretaker are permitted to claim actual expenses in appropriate categories • If the parenting plan specifies that either the PRP or the ARP is to pay 100% of an expense, no amount for that expense should be entered in Part IV – parent responsible for payment of the expense should be specified in the Comment Section and in the order • No health insurance premium should be included on the Worksheet if coverage for the child supported by the order is provided by the parent at no additional cost • In standard parenting situations (and non-parent caretaker situations), work-related childcare expenses not paid through payroll deduction will be allocated for payment to the childcare provider by the parent / caretaker receiving the support

Part IV – Additional Expenses • New Rules – • Expenses paid by a stepparent shall not be included in the calculation • In split and 50-50 parenting situations, each parent may be allocated payment of non-payroll deducted childcare expenses for the children living in that parent’s primary care • Additional expenses paid by parents in non-parent caretaker situations – • Payment of amounts owed by one parent to the other will be accomplished through adjustment of the obligations owed to the non-parent caretaker • For instance – if Mother pays $100 for health insurance and has a PI of 40%, Father will owe Mother $60 for his share of the premium – Father’s share of the BCSO owed to the non-parent caretaker is increased by $60 and Mother’s share of the BCSO is decreased by $60

Part V – Presumptive Child Support Order • Line 12 – Presumptive Child Support Obligation (PCSO) • Except in non-parent caretaker situations, the PCSO is the difference between the larger obligation and the smaller obligation on Line 11 – the amount shall be entered on Line 12 in the column of the parent with the larger obligation on Line 11 • In non-parent caretaker situations, the amount on Line 11 for each parent represents an obligation owed to the non-parent caretaker and shall be transferred to the parent’s column on Line 12 • Because of the PTA, the obligor parent will not always be the ARP

Part V – Presumptive Child Support Order • Modifications – • If “Y” is entered in the blank for the party requesting modification, the Worksheet will use 7.5% for purposes of calculating the significant variance – low income set at $9645 • Since obligations under the Flat Percentage Guidelines did not include consideration of parenting time or additional expenses, if “Y” is entered in the blank, the Worksheet will compare the amount entered on Line 13a with the amount on Line 4a, rather than 12, to determine the existence of a significant variance

Part V – Presumptive Child Support Order • Significant Variance – • Orders initially established under the Flat Percentage Guidelines must comply with the heightened standard for modification under the Income Shares Guidelines • To modify an order initially established under Income Shares, there need only be a 15% (or 7.5%) difference between the amount of the current order and the proposed new order • If there is a change in the obligor parent as a result of the modification, the significant variance requirement does not apply • Reminder - the significant variance requirement does not apply to modifications to add payment of a health insurance premium

Part VI – Deviations and FCSO • Line 14 – Deviations – • As with Line 12 (PCSO), an amount may appear for both parents (non-parent caretaker situations) • Reminder – Enter only the actual amount that should be added or subtracted to the parent’s obligation

Part VI – Deviations and FCSO • The Hardship Deviation – • Available to protect either parent against any significant change in the amount of the support obligation due solely to application of the Income Shares Guidelines • May be applied when modifying any order initially established under the Flat Percentage Guidelines • Is no longer limited to the first modification under Income Shares

Part VI – Deviations and FCSO • Line 15 – Final Child Support Order – • PCSO (Line 12) plus or minus, as appropriate, the amount of any deviation • Will be the amount of the current order if the significant variance requirement was not satisfied • Line 16 – • Line 15 adjusted for the amount of any Social Security benefit entered for the obligor parent on Line 1a • If the amount of the Social Security benefit on Line 1a exceeds the amount of the FCSO on Line 15, a zero amount will be entered for the obligor parent on Line 16

Income Shares – 2006