Child support cannot be calculated under any state's guidelines until both parents' net disposable monthly incomes are established. Each state has its own list of allowable deductions that can be subtracted from a parent's gross income to determine his net income. California's allowable deductions are slightly more generous than other states and judges have some discretion.
Step 1
Add up all taxes that are taken out of your paycheck. These include the obvious like state and federal income taxes, and they also include FICA, disability and unemployment contributions. Subtract the total from your gross income.
Step 2
Identify mandatory expenses that are taken out of your paycheck. Examples include union dues if you can't work in your field unless you pay them and contributions toward retirement plans if paying them is part of your contract with your employer. Check your budget for any other costs you have that are necessary to your job, such as if you have to provide your own uniforms or tools. Deduct these from your gross income as well.
Step 3
List all extra expenses you pay on behalf of your child, such as health insurance premiums, special school needs or regular health costs not covered by insurance. Figure out how much you spend on these things each month and deduct the total from your gross monthly income.
Step 4
Subtract any court-ordered support you're paying to another family. In California, this includes not only child support for children from another relationship but alimony to a previous spouse as well. California also allows for a "hardship" deduction from your gross income if you have significant health care expenses for yourself or another dependent that aren't covered by insurance or if you're the sole support of other dependents, such as elderly parents. Deduct any such expenses that are quantifiable and make sure you tell the judge about any that are not. You've now calculated your disposable monthly earnings.
Tips and Warnings
- The time you spend with your children isn't a fixed expense so you can't deduct it from your gross pay. But it is taken into consideration by the California child support guidelines. It is factored in after net disposable income is established. The more time you spend with your kids, the lower your support obligation will be.
- Don't make the mistake of thinking that if you choose to work as a waiter even though you've got your doctorate, the court will allow you to take deductions from your waiter's income. A judge will impute or assign doctorate-level income to you and use that as a starting base. Deductions are made from all sources so if you have income from investments or anything else besides a paycheck, make sure you include it before you start making deductions. If the custodial parent pays for child care to work or go to school, this expense will be added onto a child support order after it has been calculated.
