The Supreme Court of Pennsylvania recently adopted new child support guidelines that will become effective on January 27, 2006. The most significant change is actually a reduction in the amount of support. In addition, the guidelines now apply to cases involving couples with a total combined income of up to $20,000 per month. Previously, income limits were set at $15,000 per month for these guidelines. The changes are a result of a mandatory review required by Federal and Pennsylvania law, which states that guidelines must "be reviewed at least once every four years to insure that their application results in the determination of appropriate child support award amounts." The Supreme Court began the mandated review process in early 2003, and, on September 27, 2005, issued the results. They adopted some, but not all, of the recommendations of the committee. Support and the "Income Share" Concept For example, let us assume that the parties have two children and the mother earns $2,000 a month and the father earns $3,000 a month. In this case, the mother makes 40 percent of the total combined income and the father makes 60 percent. Under the old support guidelines, the total support due for these two children would be $1,335 per month. If the mother has primary custody of the children, then the father owes support of $801 per month ($1,335 times 60 percent). Under the new guidelines, the total support due for these two children would be $1,253 per month. Accordingly, the father's monthly support obligation would be $751.80 per month ($1,253 times 60 percent). The New Guidelines
Parents should note that the calculations with regard to health insurance premiums, childcare costs, extra curricular activities, and private school remain unchanged. These financial obligations will continue to be based on the parties' income percentages. In addition, the calculations with regard to spousal support and/or alimony pendente lite have remained unchanged. It is important to note that although these guidelines may mean a reduction in monthly child support payments, they may also create higher spousal support awards. The reason is that the spousal support calculations have remained unchanged. To help illustrate this, consider the following scenario:
In this example, there is a reduction of $902 in monthly child support. However, the total overall support obligation is only decreased by $631. In a case where there is a significant mortgage payment, this differential would be further reduced with the application of the mortgage supplement formula. Conclusion MacElree Harvey Speak with a licensed attorney about your own specific situation. © Copyright 2006 MacElree Harvey, Ltd. All rights reserved. |
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