Tag Archive for: support agreement

How income affects Milwaukee child support

Child support payments are designed to ensure that a custodial parent in Milwaukee has the funds necessary to pay for a child’s needs and care. However, there is a growing concern that the support system in America is inherently flawed. The concern is that people have children with wealthy partners not because they want children but because there is a financial incentive to do so. It is claimed that the child support system as it currently exists actually punishes the less powerful and wealthy partner in most cases.

In some cases, the non-custodial parent winds up paying more than they can afford. If payments are not made in a timely manner, then they continue to accrue with no way to reset or reduce them. There are also cases where the custodial parent is accused of using the funds for his or her own benefit rather than for the children. The lack of oversight on how child support payments are spent is frustrating for many people, but the courts argue that it would be nearly impossible to carefully monitor every penny paid in child support.

In Wisconsin, the custodial parent is referred to as having ‘physical placement” of the child. The courts may determine what the placement will be if the parents cannot reach an agreement., and the child support payments will be based partially on the physical placement of the children in question. Support levels are based on a percentage of the non-custodial parent’s income. There are also special cases where the percentages may be altered. This includes situations where parents have very high or low incomes, there is more than one family being supported, the parents have shared custody, or there are multiple children and placement of them is split.

The support agreement is binding in court, but it is not written in stone. Parents can request modifications if there are changes in their circumstances. They can ask for different custody arrangements, request an increase in child support or have the levels decreased if they are laid off. It’s important to understand all of the child support enforcement laws, what happens if the payments are delinquent and how modifications can be requested. An experienced divorce attorney may be able to help parents navigate the process and receive the appropriate child support levels.

Source: The Root, “Child-Support Laws: A Boon for Gold Diggers?”, Keli Goff, May 22, 2013

Study shows that raising a child is more expensive than ever

Wisconsin residents may be interested in a study which shows the cost of raising a child as being higher than ever. This may have implications in a divorce settlement where the amount of child support is an issue.

A study from the U.S. Department of Agriculture concludes that it takes an average of $241,080 to raise a child until adulthood. If the child goes to college, the study says that the number is almost double. While the actual amount varies depending on a number of factors, such as geography, income and size of the family, the average is still up from previous years. The new average for a child born in 2012 is the highest in the study’s history, 2.6 percent higher than the number from 2011 and 23 percent higher than the cost in the study’s first year in 1960.

Seven different categories are measured and ranked by the study. Across the board, housing was the largest proportion of expenses, averaging about 30 percent of the amount for one child. The actual numbers change depending on income levels, as well. For example, a family that has an income of less than $60,640 is likely to spend around $173,490 on their child until adulthood. A family making more than $105,000, however, averages more than double what the lower-income family spends.

Calculating child support payments in a contested divorce is extremely important, as these monthly payments are used by the custodial parent for everyday expenses and often help when that spouse has a lower income. An attorney who is familiar with child support and custody issues may be able to help ensure that the proper amount of child support is provided in the support agreement.

Source: LA Times, “Price tag for raising a baby until adulthood: $241,080”, Shan Li, August 29, 2013

Child support and the gender of the custodial parent

According to information released by the Census Bureau for 2011, mothers in Wisconsin and across the nation are statistically more likely to fail to pay court-ordered child support than fathers are. The data suggests that 25.1 percent of custodial mothers with child support agreements did not receive any of the child support to which they were entitled, as opposed to 32 percent of custodial fathers.

Nationally, $14.3 billion went unpaid in child support in 2011. Researchers have posited a hypothesis that because the average income of a woman-run household is about half that of a man’s, women who are struggling to maintain a base standard of living may be less likely to be able to make child support payments.

An additional factor is that many custodial fathers reject child support provisions in the divorce decree for a number of reasons. While a court generally orders the non-custodial parent to pay child support, it is believed that custodial fathers are not as likely to utilize government resources to help collect past due obligations as custodial mothers are. On average, when the father does not collect child support, the household income is over $9,000 higher annually, while custodial mothers’ household income drops by almost $4,200 per year.

When representing a parent who is going through a divorce, an attorney might examine the financial status of both spouses to help determine how likely the client is to receive all or part of the child support ordered by the court. The attorney can assist in incorporating a provision regarding this matter into a comprehensive settlement agreement to submit to the court for its approval.

Source: fivethirtyeight.com, “Are Moms Less Likely Than Dads To Pay Child Support?”, Mona Chalabi, Feb. 26, 2015