How is child support and maintenance calculated?
Child support is intended to benefit the children of the marriage, while alimony is intended to benefit a spouse.
If the combined monthly net income of the parents is $5,000 and they have one child, the Income Shares Schedule might indicate a total child support obligation of $1,000 per month. If one parent earns $3,000 (60% of the combined income), they would be responsible for $600 of the $1,000, while the other parent would be responsible for the remaining $400.
Above is the Income Shares Schedule. You can see how it differs as the amount of children increases, as well as the combined monthly net incomes.
There is a standard equation used to calculate alimony: (33.3% of payer’s monthly net income) – (25% of receiver’s monthly net income) = Amount paid per month.
Alimony in a marriage of under 5 years lasts for 20% of the marriage’s length. The duration of the alimony increases by 4% for each year after the 5th, capping out at 20 years.
Alimony can be awarded up to 80% for a 19-year marriage. For marriages of 20 years or more, the court can order maintenance for the length of the marriage or permanently.
Divorce can be a scary process. It is important to understand the financial benefits and obligations while going through this process.
Written by Anna Layne