Great parents understand that children need love, guidance, and support to help them grow into stable, productive adults. The cost of raising children, however, is not only emotional; it is also financial.
The hidden costs of raising a child
According to a study from The Brookings Institution, a middle-income two-parent family with two children could spend more than $280,000 raising those children from birth through age 17. While the costs of raising children can vary based on several factors including the parents’ income, unique needs of the child, location of the family, and more, it is clear that the financial cost of raising children can be significant for many families.
How Child Support Cases Are Initiated
In Colorado, if parents are getting divorced, and there are children of the marriage, courts will generally calculate a total for child support that one parent must pay the other parent. An unmarried parent may also petition the court for child support by starting an Allocation of Parental Responsibilities case (also known as an APR or case). Keep in mind, when you file an APR petition, you are also asking the court to make orders regarding not only child support, but also parenting time and decision-making. A parent can also request child support through the Colorado Department of Human Services Colorado Child Support Services Program (also known as CSS). Finally, if a child is receiving public assistance such as TANF or Medicaid, the state may automatically open a child support case.
How child support is calculated
In Colorado, the purpose of child support is to “calculate child support based upon the parents’ combined adjusted gross income estimated to have been allocated to the child if the parents and children were living in an intact household.” C.R.S § 14-10-115(1)(b)(III).
The court considers several factors when calculating child support including the financial resources of the child, the financial resources of the custodial parent, the standard of living the child would have enjoyed had the marriage not been dissolved, the physical and emotional condition of the child and his or her educational needs; and the financial resources and needs of the noncustodial parent.
Child support can be adjusted “based upon the needs of the children for extraordinary medical expenses and work-related child care costs.” C.R.S 14-10-115(1)(b)(II).
To explain it more simply, in order to calculate a child support payment, courts compare each parents income, the amount of time each parent has the child in their custody, and specific expenses such as the cost of daycare, to determine how much child support one parent should pay to the other.
Let’s review a few simple examples of how this methodology could be applied by the courts.
Example 1:
Jim and Jane have a court ordered parenting plan that gives them equal parenting time with the minor children (a “50/50” parenting plan).
Jim and Jane are both paid the exact same salary by their employers.
Jim and Jane’s children are old enough that they do not need daycare.
Neither Jim nor Jane pays for medical insurance for the children, because the children are covered by Medicaid.
It is very that the court may order very minimal child support in this scenario because Jim and Jane have 1) equal parenting time, 2) make the same amount of money, 3) don’t pay for daycare, and don’t pay for medical insurance.
If Jim or Jane were to begin paying medical insurance through their employer, under Colorado law, they could get a credit towards child support, and they may be able to receive a child support payment from the other parent.
Example 2:
Mark and Mary have a court ordered parenting plan that gives Mark 60% of parenting time with the minor children. Mary has 40% of parenting time with the minor children.
Mary’s salary is significantly higher than Mark’s salary.
Mary pays for the children’s health insurance through her private employer.
The children are school-aged, and do not require daycare.
Mary is ordered to pay child support to Mark each month, but she also gets a credit for paying the children’s health insurance, so her child support payment is reduced a bit to credit her for paying the children’s health insurance.
Example 3:
Luke and Lacy have a 3-year-old child who attends daycare.
Lacy has 60% of parenting time, and Luke has 40% of parenting time.
Luke makes 70% of the income. Lacy makes 30% of the income.
Luke is ordered to pay Lacy a monthly amount of child support because 1) he has less parenting time and 2) Luke earns significantly more money than Lacy.
Lacy is ordered by the court to pay 30% of the daycare expenses for their 3-year-old child. Luke is ordered to pay 70% of the daycare expenses for their 3-year-old child, because “Net child care costs incurred on behalf of the children due to employment or job search or the education of either parent shall be added to the basic obligation and shall be divided between the parents in proportion to their adjusted gross incomes.” C.R.S. § 14-10-115(9)(a). While Luke is ordered to pay child support and a portion of the daycare costs, Luke gets a credit for paying a portion of daycare costs, and his child support payment is adjusted to reflect that.
The examples listed above were created to help you realistically consider the way courts may allocate a child support obligation, but those outcomes are not guaranteed. Jones Law Firm can provide advice tailored to your unique circumstances. Also, you can use the calculator provided by the Colorado Judicial Branch for further research: https://www.coloradojudicial.gov/self-help/calculate-support-payments
What if the other parent is underemployed or hiding their income?
In Colorado, if a parent is voluntarily unemployed or underemployed, child support must be calculated based on a determination of potential income; except that a determination of potential income must not be made for:
(A) A parent who is physically or mentally incapacitated;
(B) A parent who is caring for a child under the age of twenty-four months for whom the parents owe a joint legal responsibility; or
(C) An incarcerated parent sentenced to one hundred eighty days or more. C.R.S. § 14-10-115(5)(b)(I)
A person cannot be considered underemployed if their current employment is a good faith career choice that is not intended to deprive the child of support and does not unreasonably reduce the support available to child. The court also considers other factors, like if the parent is enrolled in an educational program.
In determining potential income, the court must consider factors like the parent’s employment and earning history, health, age, educational attainment, record of seeking work, the local job market, availability of employers hiring in the community, earning levels in the local community, and more.
Let’s review a simple example of how this methodology could be applied by the courts:
Amy and Alex have a 10-year-old child who does not need daycare. They have 50/50 parenting time.
Amy is a medical doctor who has a history of earning $200,000 per year. Alex is a store manager who has a history of earning $65,000 per year.
Amy was ordered by the court to pay Alex child support each month because even though they have equal parenting time, Amy earns considerably more money than Alex.
Amy decided to quit her job as a medical doctor because she does not want to pay Alex child support. Amy’s new income is $0.
Amy filed a Motion to Modify Child Support with the court because she now earns $0.
Alex presented evidence to the court that Amy used to earn $200,000 per year, and that Amy quit her job as a medical doctor because she does not want to pay Alex child support.
Even though Amy is now making $0, the court is likely to treat Amy as though she is making $200,000, because Alex presented evidence that 1) Amy has a history of earning $200,000 and 2) she did not make a good faith career change.
Modification of Child Support
If you have current child support orders, you may want to modify them if you 1) want more support for the children or 2) if you want to reduce the amount you pay in child support.
Under Colorado law, “filing of a motion for modification of the child support order which results in less than a ten percent change in the amount of support due per month shall be deemed not to be a substantial and continuing change of circumstances.” C.R.S. § 14-10-122(1)(b)
That means that if you want to modify child support, the circumstances that warranted the child support must change such that they would lead to a 10% or higher change in the amount of child support that is ordered to be paid. Such circumstances may include a change in parenting time, an increase or decrease in earnings by either party, a change in daycare costs, and more.
In conclusion, child support orders are based on many factors, including the amount of money each parent earns, and the amount of parenting time each parent has with the minor children. There are several legal factors that can impact the amount of money each parent may pay or receive in child support. Jones Law Firm is happy to help review your child support situation in order to help you establish the correct amount of child support for your child.
