Determining Gross Income For Child Support
Child support in Minnesota that is paid by the non-custodial parent is calculated based on the gross income of that parent and the income of the custodial parent. It is important that the lifestyle of the child change as little as possible after parents divorce. In other words, it is important to maintain the standard of living of the child to avoid any issues in the future. Many of these issues can be emotional.
Shared Income Formula
On January 1, 2007 the shared income formula was put into effect. This new formula combines each parent’s gross monthly income after any deductions in order to calculate Minnesota child support. This formula produces what is called parental income for determining child support, or PICS.
There are some qualifying deductions that may be taken in order to reduce the parent’s gross monthly income. Those deductions include:
- Spousal maintenance
- Child support payments to children from previous relationships
- Child care expenses
- Non-joint children living in the home
It is also possible for the non-custodial parent to receive a deduction based on the percentage of parenting time they have been awarded by the courts. Furthermore, the non-custodial parent is also responsible for the child’s health insurance and any health expenses that are not covered. However, a deduction of these expenses may also be applied to monthly gross income.
There are also items that are not considered part of monthly gross income because they may not occur on a regular basis, they are provided from a temporary source, or the income may not be theirs. Those items are:
- Overtime compensation
- The income of a new spouse
- Public assistance
Once the numbers are calculated, the next step is determining the pro rata share of each parent. This is the percentage of support that each parent is obligated to provide each child. This percentage is determined by dividing each parent’s gross monthly income by their PICS. The PICS number is then applied to the Minnesota basic child support guidelines table to figure the combined support obligations based on the number of children needing support. Last, the combined basic support obligation is divided to reflect the pro rata share of each parent. This provides the expected amount of child support each parent needs to pay.
Twin Cities Divorce Lawyer & Attorney
The changes in Minnesota child support law have been for the better, but the process has not been made any easier. The ideas behind the changes are to ensure that each child receives fair support and that their living standard does not change much.
If you are in need of a Minnesota child support attorney, call us at 1-888-575-LAWS for your free initial consultation. You may also fill out the form on this website and we will be more than happy to make sure you and your children receive the outcome that is right for you.