Like other states, California has enacted Child Support Guidelines that spell out in detail how this state’s judges calculate child support. The Guidelines are supposed to ensure parents get treated fairly and the best interests of minor children get put first in court decisions.
In many cases, the Guidelines take both the guesswork and the contentiousness out of child support decisions. However, establishing child support is not always a conflict-free process. For couples with both minor children and high earnings, questions about child support are relatively common.
Among high-net-worth couples, one or both parents frequently make income that is more difficult to measure than, for example, a parent who works one job for a regular paycheck. Here are some examples:
- The income of a business owner or other high earner may vary widely from year to year.
- The person may have income from several sources, including income from investments and income from capital gains.
- The person may receive guaranteed incentive bonuses or other employment benefits that count as income.
- Especially for business owners, some expenses that count as deductions for tax purposes may not count for child support purposes.
Parents in and around Santa Monica may be entitled to a guideline deviation
While for the right reasons any parent may ask the court to order a support amount other than what the Guidelines call for, wealthier individuals may find themselves in situations where departing from the Guidelines is warranted.
For example, a parent who earns a high income may be able to argue that the support they will pay by the Guidelines’ formula is more than what their children need to maintain their standard of living.
On the other hand, the parents’ children may receive medical, educational or other services that a court will want to account for in a child support order.
Parents in and around Malibu, Calabasas and Santa Monica who are facing a family law case involving child support should make sure they understand their legal rights and options.