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How Child Support is Calculated for High-Income Parents in Fayetteville, Arkansas?

How Child Support is Calculated for High-Income Parents in Fayetteville, Arkansas?

Child support is designed not just to provide for a child’s basic needs but also to ensure that their standard of living is similar across both parents’ homes, if applicable. As a result, high-earning Arkansans typically pay more in child support than their lower-earning peers. It is critical to understand how child support is calculated for high-income parents in Fayetteville, Arkansas.

The Income Shares Model

Whether you live in Clear Creek or Fayetteville Square, your child support amount will be determined using the same calculations. Arkansas uses the income shares model. Here’s how it works:

  1. Determine gross income. Both parents’ gross incomes are assessed, including all sources of earnings.
  2. Adjust for deductions. Deductions such as federal and state taxes, mandatory retirement contributions, and union dues can be subtracted from your gross income, as can support payments for other children.
  3. Combine incomes. Both parents’ gross incomes, minus allowable deductions, are added together.
  4. Refer to the chart. Arkansas has a child support chart that shows the total amount of child support required of both parents, based on their combined income and the number of children they have together.
  5. Divide responsibility proportionally. Each parent’s responsibility for paying the total child support obligation is determined by their percentage of total income. It’s typically the case that the noncustodial parent pays their share of the total to the custodial parent.

The chart assigns child support obligation values for separated couples making up to $30,000 per month.

What Is Considered Income?

Around 17% of all the households in Arkansas are run by single mothers, many of whom receive significant amounts of child support. Fayetteville’s average per capita income is just $50,182, and the average household income is $49,074. However, some Fayetteville families earn significantly more than that. Income isn’t just money you make from working. For child support calculations, it also includes:

  • Self-employment income
  • Bonuses and commissions
  • Some Social Security benefits
  • Unemployment benefits
  • Workers’ compensation benefits
  • Retirement income
  • Dividends or interest from investments
  • Rental property income
  • Alimony
  • Any other source of recurring income, including money coming from other family members

As you can see, more affluent Fayetteville families are more likely to have some of these sources of income than their lower-net-worth peers. This affects how much they can expect to pay in child support.

Additional Factors Influencing Child Support Payment Amounts

Income isn’t the only factor that influences child support payments. There are also adjustments made to the final amount at the discretion of the courts based on:

  • Parenting time
  • The presence of other children from different relationships
  • Extraordinary medical expenses
  • Educational expenses
  • Health insurance costs
  • Childcare costs

Arkansas courts may deviate from the standard guidelines when special circumstances warrant an increase or decrease in the amount of child support paid by either parent. Those deviations must be proven to be in the child’s best interests.

Modifying Child Support Agreements

If you believe you’re paying too much in child support, or your ex-spouse is not covering their fair share, you should contact a Fayetteville child support attorney. A lawyer can help you with every aspect of your child support case, including requesting modifications.

You can request a modification at any time if your circumstances change significantly. Those changes can include:

  • Job loss
  • A new, higher-paying job
  • A new disability or serious illness
  • Retirement
  • Incarceration
  • Changes in family composition
  • Changes in the child’s needs

The court will review your request and either grant the modification or refuse it. It’s important that you continue making child support payments while the court considers your modification request. Failure to make payments can lead to wage garnishment, driver’s license suspension, or even contempt-of-court proceedings, which can result in jail time. If you want to avoid these and other potential consequences, speak with a Fayetteville family lawyer and keep making payments in the meantime.

FAQs

How Do Courts Determine Child Support in Arkansas?

Courts determine child support in Arkansas using an income shares model that combines both parents’ gross incomes and compares the number to a state chart to get the base amount of child support required from both parents. They then add expenses like health insurance and childcare, subtract credits for parenting time, and calculate each parent’s share as a percentage of the total obligation based on their income.

Can Child Support Take My Whole Paycheck?

Child support cannot generally take your whole paycheck. There are usually caps to garnishment. The exact amount of your paycheck they can take will vary based on whether you have other family members and whether your payments are in arrears. The state imposes limits to ensure you have the money needed to cover basic needs.

What Is the New Child Support Law in Arkansas?

The new child support law in Arkansas was passed in 2020. Administrative Order No. 10 shifted child support calculations to an income-shares model that uses both parents’ income to calculate the amount of support each of them is required to pay. The 2020 rule also allows modifications to child support when one parent’s income changes by either $100 or 20%.

What Is the Maximum Amount of Child Support That Can Be Garnished?

The maximum amount of child support that can be garnished is 65%. Arkansas follows the federal wage garnishment law, which sets the maximum amount of wage garnishment for child support at 50% to 60% of your disposable income, depending on whether or not you are supporting another child or spouse. You can also have an extra 5% garnished if you’re over 12 weeks in arrears.

Hire a Child Support Lawyer

Now that you know how child support is calculated for high-income parents in Fayetteville, Arkansas, it’s time to hire a child support lawyer to represent your interests and support your rights. The experienced team here at Bundy Law has an in-depth understanding of Fayetteville child support laws and how to apply them to various types of cases, including high-income families. Contact us to schedule an initial consultation today.

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