Above the Guidelines Child Support

New Jersey Divorce Lawyer

When parents of unemancipated children are divorced or otherwise living separate, it is well understood that the expenses for the children are shared through the payment of child support. The New Jersey Rules of Court provide for child support guidelines that utilize mathematical formulas to calculate the amount of child support. These formulas involve a schedule that provides for support based upon the parties' income and the parenting schedule. While the Court and the parties may deviate from the guideline figure, the vast majority of cases involve application of these guidelines.

The Courts have generally recognized where the parties have the financial wherewithal to provide for their children, the children are entitled to the benefit of financial advantages available to them. Children are entitled to not only bare necessities, but a supporting parent has the obligation to share with his children the benefit of his or her financial achievement. The child is generally entitled to a standard of living comparable to his or her parents.

When the combined net (after tax) income of the parties exceeds $3,600.00 per week, or $187,200.00 per year, the guidelines no longer apply. With net income exceeding this amount, the situation involves support "above the guidelines", and a different, more subjective analysis applies to determine the appropriate level of support.

In the case Isaacson v. Isaacson, 348 N.J. Super. 560 (2002), the New Jersey Appellate Court set forth the standard for considering "above the guideline" child support. The Court noted that the Court should not simply extrapolate above the child support guideline using the respective percentages of total combined net income. Instead, there must first be a calculation of two separate budgets, one for the parent and child, and one solely for the custodial parent. Also, the custodial parent's budget should be broken down into two parts: the reality-based component dictated by his or her income and the added projections which will, in fact, allow the children to share in the other parent's financial gain. This could include, by way of example, private school tuition, private tutoring, summer camps, music or art lessons, sports clinics, vacations, study abroad, and the provision of transportation for a child who drives, to mention only a few possibilities. It could also include help to make a family home more presentable, assistance with the cost of a family car, or a larger amount of money for a teenager's clothing and incidentals. What is important is that sufficient thought, effort and information is put into the two-part budget to give the trial judge a basis on which to determine the present, and perspective, expenses of the child considering the particular facts.

The Courts also recognized that a component of a parent's high income may include savings for the child, which would appear to be above and beyond any type of traditional 529 Plan. The New Jersey Courts have recognized that both a parent's high income and current needs may change over time and while present overindulgence may be a legitimate consideration in a current child support award, a true sharing in a parent's good fortune may include a potential for future savings and securing a child's future. Among appropriate methodologies to provide for future support on "sharing" is the "good fortune trust".

Obviously, the need of the child is also balanced against the respective income of the parties, and a thorough examination of each parties' income is necessary to determine the appropriate ability of each to contribute.

Thus, when parents have combined net income in excess of $187,200.00, there is no clear cut amount of child support. Rather, a mere thoughtful and specific calculation for each child is warranted, considering the various budgets, and the parents' incomes. If your combined net income is above the Guidelines, you will want to speak to a New Jersey divorce lawyer at The Law Office of Steven P. Monaghan who can answer questions you may have regarding how the court will establish an proper and equitable child support figure in your case.

Divorce Attorney in New Jersey

Contact a New Jersey divorce lawyer for information on child support issues when your income exceeds the current Guidelines.