When it comes to marital dissolution, not all divorces are created equal. Indeed, the net worth and income of divorcing spouses play a major role in determining child support in the state of New Jersey. Under the laws of this state, courts apply a set of Guidelines to establish or modify child support payments, which serve as a rebuttable presumption.

Many parents, mediators, trial lawyers, and the Family Court simply look to the Schedule of Child Support Awards, setting payments based on a standardized formula set forth in the schedule. For high wage earners, however, the process is less straightforward.

Defining “good cause” under New Jersey law

Under the law of this state, courts may only disregard the New Jersey Child Support Guidelines for “good cause” shown. In general, “good cause” is established by (1) considerations set forth in Appendix IX to the Rules of Court, one of which is combined net annual family income that exceeds $187,200, (2) other relevant factors that may make the guidelines inapplicable or subject to modification, and (3) that an injustice would result from the application of the guidelines.

Formulating appropriate child support payments for high income families

While good cause determinations are within the court’s “sound discretion” in every case, in high-wage earner scenarios, the parents, mediators, trial lawyers, and the Family Court will apply the Guidelines up to the $187,200 figure and then supplement the award via a discretionary amount determined by family income in excess of $187,200. The following factors specified in N.J.S.A. 2A:34-23 are relevant to calculating appropriate child support payment:

•· Needs of the child;

•· Standard of living and economic circumstances of each parent;

•· All sources of income and assets of each parent;

•· Earning ability of each parent;

•· Need and capacity of the child for education, including higher education;

•· Age and health of the child and each parent; and

•· Any other factors the court may deem relevant.

No maximum award

For families with net annual incomes exceeding $187,200, the Appendix IX-F maximum guideline award is equivalent to the minimum award. The court considers the additional factors because estimates on the marginal cost of children in intact high-wage earner families “are either unreliable or unavailable,” making it difficult or impossible for the court to “extrapolate the Appendix IX-F schedules (statistically or by adding amounts from different income ranges) beyond that dollar limit.”

In Isaacson v. Isaacson, 348 N.J. Super. 560 (App. Div.), certif. denied, 174 N.J. 364 (2002), in which our office represented the Appellant-Wife, the Appellate Division struggled with the issue of fair child support in a high wage-earner setting. The court determined that the high wage earner should not have to fund “three ponies” for a child, but rather should be expected to pay reasonable amounts, consistent with the parties’ and the children’s actual lifestyles, and the enhanced needs of the child considering the high wage earner’s income.  The high wage earner should be expected to contribute to the children’s “extras” afforded by that income: summer camps, private school, college, and the like.

Conclusion

At the end of the day, there are no statutorily mandated maximum payments with regard to child support awards in high-wage earning families, which must generally reflect children’s needs and the family’s established lifestyle.

If you require guidance, assistance, and/or representation in a Family Law matter, whether involving child support or any of the myriad Family Law topics listed on our website, please call or write us today to schedule an attorney-client privileged initial consultation. As compassionate counsel and tough advocates, we will do our very best to serve you, no matter what the circumstances may be.