What is considered income for child support purposes?

What is considered income for child support purposes?

The first step in determining a support obligation is determining the parties' net income.  The court will take monthly gross income and then deduct certain expenses to arrive at each parties’ monthly net income.  The court will also consider other factors discussed below before determining the percentage of each parties’ support obligation.

What is considered income?  The court uses a six-month average of all of the party’s income.  Income includes, but is not limited to:

1. wages, salaries, bonuses, fees and commissions;
2. net income from business or dealings in property;
3. interest, rents, royalties, and dividends;
4. pensions and all forms of retirement;
5. income from an interest in an estate or trust;
6. Social Security disability benefits, Social Security retirement benefits, temporary and permanent disability benefits, workers’ compensation and unemployment compensation;
7. alimony (in some circumstances); and
8. other entitlements to money or lump sum awards, without regard to source, including lottery winnings, income tax refunds, insurance compensation or settlements; awards and verdicts; and any form of payment due to and collectible by an individual regardless of source.

There are certain exceptions or qualifications to be taken into consideration with the above list.  Here are a few:

1. Seasonal Employment. For example, if one person’s job is seasonal, the court will use the year average and not the six month average.  In this situation, it is important to show a year’s worth of earnings to make sure that the gross income is not artificially low or high.  
2. Social Security Disability benefits.  There are two types of Social Security disability benefits: Supplemental Security Income (SSI) andSocial Security Disability Insurance benefits (SSDI).  Supplemental Security Income (and public assistance benefits, for that matter) are not considered income.    
3. Imputed Income.  If an individual voluntary quits their job or refuses to work, the decision maker may compute an earning capacity to that individual.

What is deducted from income?

1. federal, state, and local income taxes;
2. unemployment compensation taxes and local services taxes;
3. Social Security, Medicare and Self Employment taxes (FICA) and non-voluntary retirement payments;
4. mandatory union dues; and
5. alimony paid to the other party.

Once the court has arrived at the parties’ net monthly income as determined in 231 PA 1910.16-2, the court may also allocate other expenses such as childcare, medical insurance premiums, and other unreimbursed medical expenses between the parties.  The court will consider other factors including the amount of custody shared between the parties and each party’s other support obligations to dependent children.  The support guidelines will then be applied to determine each parties’ obligation.  

As noted above, there are several exceptions and qualifications to many of the income resources and deduction rules. Contact us today for a free consultation to discuss the unique facts of your case.  

Resources: PA 1910.16-2      

When do child support payments end?

When do child support payments end?  Do I have to do anything once my child turns 18 to stop the payments?

Technically support orders do not terminate automatically and a person paying child support was required to file a petition to terminate a child support order once the child is emancipated.  Subdivision (e) of Rule 1910.19 was implemented to prevent overpayments and to give parties notice.  Now, within the six months before the child turns 18, the court will issue an emancipation inquiry and notice to the obligee and a copy to the obligor asking certain questions to see whether the order shall remain in effect after the child turns 18 or graduates from high school (whichever is later). If there is no response after 30 days, the domestic relations section can administratively modify or terminate an order.

If you are receiving child support, you should complete and return the inquiry especially if there is a reason that the child should continue to receive support beyond age 18 or graduating high school.  If you do not return the notice, the domestic relations section may modify or terminate the order without further proceedings.  If there are other children on the court order, there may be a conference.

Three reasons why child support may continue even after the child reaches 18:

1. The child has special needs.
2. There is an agreement between the parties that requires support beyond age 18 or after the child has graduated from high school.
3. There are arrears.

Arrears.  If the person paying child support owes arrears, the arrears continue to accrue through the date of the termination.  The domestic relations section may continue to have child support deducted in the amount of the original order to cover the arrears.  In this situation, the arrears will be paid off faster.

If you object to paying support for your child beyond age 18 or their graduation from high school, you may request a hearing.

If you have questions about child support, contact us for a free telephone consultation.  You may also consult Pennsylvania Rule 1910.19.

Which parent is responsible for the cost of transportation when they share custody?

A custody agreement will create the need for transportation.  At times, the transportation may become significant in terms of time and money.  While there are no set rules for determining who bears the burden of the cost of transportation, a court may find that the parent moving away and creating the need for travel costs may be responsible for costs.  The courts will consider the financial ability of each party to incur the costs. Please also be aware of that Pennsylvania courts have found that where one parent is responsible for transportation costs in order to exercise their partial custody, they may be entitled to a reduction in child support to cover the cost of transportation.

In addition to costs, parents also want to know whose responsibility it is to transport between the parents.  This designation is not always considered, but can cause unnecessary headaches if not defined clearly.  Even if the parties are amicable, it is a good idea to establish who transports where and when, especially if there is considerable distance between the parents.

Will the courts keep siblings together?

In determining which parent will get custody, will the courts give greater weight to keeping siblings together?  What about half-siblings?

The main focus of the court is to determine the best interest of the child.  Whether the best of interest of the child is to be with their siblings primarily is to be determined.  In all cases, the courts use the 16 factors to determine what is in the best interest of the child or children.  The courts understand that the relationship a child shares with their siblings is an important one that can play a large role in their development.  As such, one of the factors the courts consider is which party is likely to keep siblings together.  The courts will also consider the requests of the child, depending on their age and reasoning.  This is includes if the child is requesting to live apart from their siblings.  

In Philadelphia, the courts have looked at a compelling reason standard.  This means that the courts will usually look toward keeping the child with their siblings unless there is a compelling reason not to do so.  However, if there is a substantial custody arrangement that can still satisfy the goal of significant relationship between the children, the courts will allow the separation of the siblings. These principals can also be applied to half siblings.

Grandparents and Great-grandparents and Custody

A grandparent or great-grandparent must have legal standing (legal right) to file a legal action for custody.  

A grandparent or great-grandparent may file an action for partial physical custody or supervised physical custody in the following situations:

1. Where the parent of the child is deceased, a parent or grandparent of the deceased parent may file an action under this section;
2. Where the parents of the child have been separated for a period of at least six months or have commenced and continued a proceeding to dissolve their marriage; or
3. When the child has resided with the grandparent or great-grandparent for at least 12 consecutive months, excluding brief temporary absences of the child from the home, and is removed from the home by the parents an action must be filed within six months after the removal of the child from the home.

While PA laws provide standing for grandparents or great-grandparents, as explained above, a grandparent may also have other legal standing to file for custody.

When deciding whether the grandparents and great-grandparents shall have partial physical custody or supervised physical custody, courts will consider whether the award interferes with any parent child-relationship and whether the award is in the best interest of the child. 

If you would like more information on seeking custody for your grandchild, contact us today.

Who Is Permitted to Sue for Custody?

The only person allowed to sue for custody is someone that has “standing” under the law.  In order to sue for custody you must prove that you have legal standing to do so.  The following individuals may file for physical or legal custody under PA law:

1. A parent of the child.
2. A person who stands in loco parentis to the child.  A person who stands in loco parentis of child is one who has stood in the shoes of a parent and has assumed responsibilities of caring for the child.
3. A grandparent of the child who is not in loco parentis to the child:
   1. whose relationship with the child began either with the consent of a parent of the child or under a court order;
   2. who assumes or is willing to assume responsibility for the child; and
   3. when one of the following conditions is met:
      1. the child has been determined to be a dependent child under the regulations
      2. the child is substantially at risk due to parental abuse, neglect, drug or alcohol abuse or incapacity; or
      3. the child has, for a period of at least 12 consecutive months, resided with the grandparent, excluding brief temporary absences of the child from the home and is removed from the home by parents, in which case the action must be filed within six months after removal of the child from the home.

If you are curious about your right to seek physical or legal custody, contact us today.  

Read More About Standing for Grandparents and Great-grandparents.

The 16+ Factors That Family Courts Take Into Consideration When Deciding Custody

Pennsylvania family courts take into consideration the following factors to determine the best interests of a child:

1. Which party is more likely to encourage and permit frequent and continuing contact between the child and another party.
2. The present and past abuse committed by a party or member of the party’s household, whether there is continued risk of harm to the child or an abused party and which party can better provide adequate physical safeguards and supervision of the child.
3. The parental duties performed by each party on behalf of the child.
4. The need for stability and continuity in the child’s education, family life, and community life.
5. The availability of extended family.
6. The child’s sibling relationships.
7. The well-reasoned preference of the child, based on the child’s maturity and judgement.
8. The attempts of a parent to turn the child against the other parent, with some exception.
9. Which party is more likely to maintain a loving, stable, consistent and nurturing relationship with the child adequate for the child’s emotional needs.
10. Which party is more likely to attend to the daily physical, emotional, developmental, education and special needs of the child.
11. The proximity of the residences of the parties.
12. Each party’s availability to care for the child or ability to make appropriate child-care arrangements.
13. The level of conflict between the parties and the willingness and ability of the parties to cooperate with one another.  
14. The history of drug or alcohol abuse of a party or member of a party’s household.
15. The mental and physical condition of a party or member of a party’s household.
16. Any other relevant factor.

All of these factors are to be considered and can be given varying amounts of weight.  If you have a question about how these factors may affect your custody case, contact us today.

The Types of Custody in Pennsylvania

Custody falls into two categories in Pennsylvania: physical and legal.  Physical custody is the actual possession and control of a child.  Legal custody is the right to make major decisions on behalf of the child, including, but not limited to, medical, religious and educational decisions.

Within those two categories of custody, a court may award the following type(s) of custody based on the best interests of the child:

1. Shared physical custody.  This is the right of more than one individual to assume physical custody of the child, each having significant periods of physical custodial time with the child.
2. Primary physical custody. The right to assume physical custody of the child for the majority of the time.
3. Partial physical custody. The right to assume physical custody of the child for less than a majority of the time.
4. Sole physical custody. The right of one individual to exclusive physical custody of the child.
5. Supervised physical custody. Custodial time during which an agency or an adult designated by the court or agreed upon by the parties monitors the interaction between the child and the individual with those rights.
6. Shared legal custody. The right of more than one individual to legal custody of the child.
7. Sole legal custody. The right of one individual to exclusive legal custody of the child.

What about visitation?  Visitation is no longer a term recognized by the state of Pennsylvania.  When term “visitation” is used in reference to custody it may be construed to mean: partial physical custody, shared physical custody, or supervised physical custody.

For more information about physical or legal custody, contact us today.

RELOCATION IN PENNSYLVANIA

Question: My ex wants to move away with my children. Can I stop her? Does it matter if we have never had a custody order?

Answer: Pennsylvania Law requires a party who plans to relocate a child to notify all persons with custodial rights of the proposed address and the names of all adults and other children in the home. Moving within the state and the same county also require notice.

If you do not have a court-ordered custody arrangement, you can request an order preventing the relocation. This can be done by filing a complaint for custody (does not have to be for primary custody) along with a statement objecting to the relocation, and a request for a hearing.  The procedures may be expedited in relocation cases.

If you have more questions about filing a notice for proposed relocation or preventing the relocation of your children, please call 215-301-9783 for a consultation.