Child Support Guidelines

The child support guidelines in North Carolina are primarily determined by the income shares model. This considers both parents’ incomes and the number of children to calculate child support obligations. The state provides a worksheet to assist in these calculations. Keep in mind that factors like custody arrangements and healthcare costs may also impact the final amount.

This blog article have provided a more comprehensive reference to help you comprehend the contents of these rules and how they are utilized.

Comprehending the Child Support Guidelines in North Carolina

One tool used to determine how much child support should be paid from one parent to the other is the North Carolina Child Support Guidelines. The guidelines undergo evaluation and, if needed, revision at least once every four years. Effective March 1, 2020, the present standards are applicable to child support cases heard on or after that date.

The court has the authority to mandate $50.00 in minimum child support. Any party with a monthly adjusted gross income of less than $1,108.00 would be eligible for this amount.

In addition, the following requirements are specified in the North Carolina Child Support Guidelines:

Income

The Guidelines base their calculations on the parents’ existing incomes at the time the order is entered. Income is the main factor used to determine child support. Documentation of past and present income, such as pay stubs, employment statements, company receipts and costs, and most recent tax returns, should be used to verify income statements.
The primary factor used to determine child support is each party’s monthly gross income from all sources, including but not restricted to:

1. Payouts

2. Pay for severance

3. Wages and Salaries

4. Bonuses and commissions

5. Ownership or management of a company, partnership, or enterprise
revenue from rental properties

6. Pensions or retirement

7. Interest

8. Annuities and trusts

9. Benefits from workers’ compensation

10. Benefits from unemployment insurance

11. Presents Awards

12. Recipients of alimony or maintenance who are not the parties to the current action

When an obligor receives income that is irregular, non-recurring, or one-time, the court may decide to prorate or average the income over a predetermined period of time, or it may mandate that the obligor pay child support at the rate of one-half of their non-recurring income, which is equal to the percentage of their recurring income.

Income from running a business or from self-employment

Gross receipts less regular and necessary expenses for operating a business or engaging in self-employment are the total income from these sources. This includes rent, royalties, proprietorship, joint ownership of a partnership, and closely held corporations. Any sums that the IRS permits for the accelerated component of depreciation expenses, tax credits, or any other business expenses that the court finds to be unsuitable for calculating gross income are not considered ordinary and necessary business expenses. This amount is almost always going to be different from what is calculated as business income for tax reasons.

If a parent receives expense reimbursements or in-kind payments—such as free accommodation, paid meals, or the use of a corporate car—during their work, self-employment, or business operation, those payments are recorded as income if they are sizable and lower their personal living expenditures.

Potential or assumed revenue

Should the court determine that a parent’s intentional underemployment or voluntary unemployment stems from dishonesty or purposeful income suppression to evade or reduce their child support duty, the computation of child support could be predicated on the prospective income of that parent instead of their actual earnings. while a parent is caring for a kid under the age of three or is physically or mentally incompetent, potential income may not be taken into consideration while determining child support. A child support order should not be established or modified based on the assumption that incarceration is voluntary unemployment.

In order to determine a parent’s potential income, one must consider their assets, place of residence, employment potential, and likely earnings level based on their past employment history, occupational qualifications, current job opportunities, community earnings levels, and other pertinent background information pertaining to their actual earning potential. In the event that the parent lacks recent employment experience or vocational training, their prospective income ought to be equivalent to the minimum wage for an hourly work week of 35 hours.

To learn more about the North Carolina Child Support Guidelines and get a better idea of what you can expect to pay or receive, consult an experienced attorney.

Click Here To Download The North Carolina Child Support Guidelines 2023

Frequently Asked Questions About Child Support Guidelines

1. What is child support?

Child support is a legal obligation where a non-custodial parent provides financial assistance to the custodial parent or guardian for the well-being and upbringing of their child.

2. How is child support determined?

Child support guidelines vary by jurisdiction, but factors such as income, custody arrangement, healthcare, and education expenses are commonly considered in the calculation.

3. What role does income play in child support calculations?

The income of both parents typically influences the child support amount. The non-custodial parent’s income is a key factor in determining their contribution.

4. Can child support orders be modified?

Yes, child support orders can be modified under certain circumstances, such as changes in income, custody arrangements, or the child’s needs.

5. What happens if a parent fails to pay child support?

Failure to pay child support may result in legal consequences, including wage garnishment, fines, or even imprisonment, depending on the jurisdiction.

6. Is child support only for basic needs?

Child support is intended to cover a child’s basic needs, but it may also include additional expenses like education, healthcare, and extracurricular activities, depending on the jurisdiction.

7. How long does child support last?

The duration of child support varies by jurisdiction and is often determined by factors such as the child’s age, education, and any disabilities.

8. Can child support orders be enforced across state or international borders

Enforcement can be complex, but international child support enforcement is often facilitated through international agreements and legal mechanisms.

9. What steps can be taken to establish child support?

Typically, child support is established through a legal process, such as a court order. This involves submitting relevant financial information and documentation.

10. Can child support be tax-deductible?

Child support is generally not tax-deductible for the paying parent, nor is it considered taxable income for the receiving parent.