For most parents in New Jersey and elsewhere, having children is the most satisfying part of life. Along with the joy children bring, they also bring great financial expense. While some may not regularly focus on these expenses, the expenses of raising children become front and center upon the parents’ separation and divorce.

When determining child support matters, in addition to the income of each party, the parties’ child-related expenses are highly scrutinized. These expenses extend beyond bare necessities.

The Essentials About Child Support: What is Included?

So what is taken into consideration in determining child support?

While clothing, food, and shelter certainly are important parts of child support, expenses for children include health insurance, unreimbursed health expenses, transportation, education, sports, camps, lessons, other extra-curricular activities, employment-related child care, and a host of other items.

New Jersey, like most states, has determined via econometric studies the cost of raising children, taking into account the incomes of the parties from all sources (earned and unearned), and then looking at the division of overnight parenting time. These are referred to as the Child Support Guidelines. The approach is mathematical and complex. Certain expenses are recognized but not included in the Child Support Guidelines, either because not every family is presumed to incur them, or, if they do, not every family spends the same amounts on these items. They include expenses for unreimbursed or non-covered medical, dental, orthodontic, optical, hospitalization, drug, therapy, and similar expenses; camps; children’s auto expenses and insurance when they drive; private schooling; religious schooling; college prep; college expenses, and the like.

Some parents elect to ignore the Child Support Guidelines and create a custom-built child support method. This can work well when the parties get along and there is a high degree of trust. Mediators, financial consultants, collaborative attorneys, and the parties can develop a model that is realistic, flexible, and modifiable as necessary. There is additional up-front cost in building this model, but parties seem much happier using it, there is better self-enforcement because both parties’ buy-in is heightened, and the extra process expense is more than made up by the parties’ ease of administration and elimination of counsel fees and friction over time.

Medical expenses

Medical expenses are considered in most child support arrangements. In addition to health insurance, the parties should address unreimbursed medical expenses, co-pays, deductibles, eyeglasses, surgery, dental work, orthodontics, therapy, and related expenses. Parties can agree to address these up front, by each paying part of the expense as incurred, or, more likely, by a system of predictable reimbursements from one party to the other, whether quarterly or otherwise.

Extracurricular activities/entertainment

Extracurricular activities, including entertainment, should also be considered when calculating child support. These activities can range from fairly inexpensive items such as monthly expenses for movies and take-out food, or more expensive sports activities or summer camps. Again, these could be resolved by up-front contributions by each parent to the other, by each parent to the child or children, or by an after-the-fact adjustment, whether quarterly or otherwise, based on which parent has paid for which activity.

Support beyond the age of 18

Child support under the Child Support Guidelines terminates when a child turns 18, except if a child lives at home while attending college (in which case, the Child Support Guidelines continue in effect for those families). Parties need to negotiate and resolve what happens when a child moves away to college? Is any child support still payable by one party to the other? Children return home from college about 4 months a year, on average. Is there a percentage reduction based upon the weeks or months home versus the time spent away at school? Should parents contribute directly to the children for certain out of pocket expenses, thereby circumventing the need for reimbursement from the other parent? College expenses may also be considered when child support is being determined.

Substantial Changes in Financial or Other Circumstances

Terms articulated in a final child support agreement or court order will not likely remain in place throughout a child’s financially dependent years. When a substantial change in circumstances occurs, including a custodial change, high school graduation, or a significant financial change to a parent (unemployment, disability, and retirement), a child support modification may be sought by either side, whether by up-front direct negotiations, use of a mediator to facilitate negotiations, or a return to the courts. The parties should include language in their final settlement agreement or court order stating the procedure to be used if a party claims such a change of circumstances, to avoid a court battle when none is required. Use of direct or mediated negotiations could avoid the problem entirely. But if all else fails, the courts are there to help the parties solve their problems.

Conclusion

Whatever phase you are in with your child support matter, whether preliminary, mid-course, final agreement, or post-judgment, it is wise to have a lawyer on your team, working hard for your children and you. As a New Jersey Supreme Court Certified Family Law Specialist, my office and I routinely handle child support and other family law matters.

To learn more about our approach to child support and family law, please see our website — and then give us a call. We will be happy to help you.

Source: FindLaw, What Does Child Support Cover? Accessed Feb. 5, 2015