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Characteristics of Shared-Placement Child Support Formulas Used in the Fifty States - page 45 / 54

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Addendum Ic Above-Threshold Offset Formula, with a 25% or More Threshold

CS = (lesser time parent’s obligation) minus (greater time parent’s obligation) CS = (IncomeX * CNM * (1 – ATmultiplier)) – (IncomeY * CNM * ATmultiplier)

Where: CNM = child number multiplier: 17% for 1 child; 25% for 2; 29% for 3; 31% for 4; 34% for 5 or more

IncomeX = gross monthly income of lesser time parent (X) IncomeY = gross monthly income of greater time parent (Y) TimeX = percentage of time that child lives with lesser time parent (X) TimeY = percentage of time that child lives with greater time parent (Y)

Threshold = 24 percent time (i.e., “25% or more time-share” defines shared placement, for purposes of a reduction in child support.)

ATmultiplier

= percentage of time above the threshold that child lives with the lesser time parent = (TimeX – Threshold) / (100 – (Threshold * 2)) [or see Addendum Id, Column C]

Negative results indicate that the greater time parent (Y) is the child support payor.

Some examples:

a.

Lesser time parent earns $40,000/year ($3,333 monthly), and cares for child 30% of the time. Greater time parent earns $25,000/year ($2,083 monthly). One child.

ATmultiplier = ((30 – 24) / (100 – (24 * 2)) =.115 [or see Addendum Id, Column C]

Formula: (3333 * .17 * (1 – .115)) – (2083 * .17 * .115) = $501 – $41 = $460/month CS Lesser time parent is the payor.

b.

Lesser time parent earns $25,000/year ($2,083 monthly), and cares for child 30% of the time. Greater time parent earns$40,000/year ($3,333 monthly). One child.

Formula: (2083 * .17 * (1 – .115)) – (3333 * .17 * .115) = $313 – $65 = $248/month CS Lesser time parent is the payor.

c.

Lesser time parent earns $25,000/year ($2,083 monthly), and cares for child 45% of the time. Greater time parent earns $40,000/year ($3,333 monthly). One child.

Formula: (2083 * .17 * (1 – .404)) – (3333 * .17 * .404) = $211 – $229 = – $18/month CS Greater time parent is the payor.

d.

Lesser time parent earns $80,000/year ($6,667monthly), and cares for the child 30% of the time. Greater time parent earns $20,000/year ($1,667 monthly). One child.

Formula: (6667 * .17 * (1 – .115)) – (1667 * .17 * .115) = $1003 – $33 = $970/month CS Lesser time parent is payor.

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