Child Support is Based on Net Monthly Income

In Texas, child support is calculated based on the payor’s (or obligor’s) net monthly income. The Texas Family Code states that net income is to be calculated by “subtracting from gross income social security taxes and federal income tax withholding for a single personal claiming one personal exemption.” Tex. Fam. Code §154.061(b). This means that simply attempting to calculate one’s child support obligation based on his or her take home pay is a mistake. Payments for monthly health insurance premiums, 401(k) contributions, and other payroll deductions not specified in the family code will be included for purposes of calculating one’s net monthly income. In addition to wages and salary, rental income, retirement and annuity income, disability, unemployment, and gifts are all considered income for purposes of calculating child support. Read More “Child Support and High-Income Earners”

Child Support Calculations and Caps in Texas

Aside from wrapping up technicalities in a divorce, the government is most concerned about how the splitting couple will provide for the children, so an important question to ask is: what are the caps on child support and how is it calculated? High earners who are not aware that a cap exists in Texas could end up paying more than the amount required by law, though that is certainly allowed. The parties may agree to whatever support above the cap they feel comfortable with, but the cap is a helpful reference point for that discussion. It is determined by statute through the Attorney General’s office. Only in rare cases may a Judge set child support above the cap. Read More

Child Support and High-Income Earners

Category: Child Support