Lance J. Nelson, Esquire

New guidelines will create payment reductions in 2006, though spousal support calculations remain unchanged

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
The Pennsylvania Support Guidelines are still based on the "income share" concept. In other words, the parents' net monthly incomes are combined to arrive at a total family income. This total family income, plus the number of children involved, dictates the amount of child support. Once the total amount of child support is determined, each parent is responsible for his or her proportionate share of the income.

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
The chart, below, shows how the new support guidelines compare to the old support guidelines in various income scenarios. As the chart indicates, there are significant reductions in support under the new guidelines in the higher income categories. For example, the guideline support amounts at $20,000 per month are actually less than the old guideline support amounts at only $15,000 per month.

Total Household Income Number of Children Old Guidelines New Guidelines Difference
$ 2,500
2
$842
$853
$11
$ 2,500
4
$1,095
$1,092
$(3)
$ 5,000
2
$1,335
$1,253
$(82)
$ 5,000
4
$1,728
$1,563
$(165)
$10,000
2
$2,312
$1,840
$(472)
$10,000
4
$3,006
$2,263
$(743)
$15,000
2
$2,945
$2,253
$(692)
$20,000
2
N/A
$2,877

$20,000
4
N/A
$3,364

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:

The Scenario
Mother $ 2,000 Net Income (13.33%)
Father $13,000 Net Income (86.67%)
Total Family Income $15,000
Three (3) Children  

Old Guidelines New Guidelines
Child Support =
$3,480
Child Support =
$2,439
 
X 86.67%
 
X 86.67%
 
$3,016
 
$2,114

Spousal Support:
Old Guidelines
  Spousal Support:
New Guidelines
 
Father's Income
$13,000
Father's Income
$13,000
Mother's Income
- $2,000
Mother's Income
- $2,000
Child Support
- $3,016
Child Support
- $2,114
Difference
$7,984
Difference
$8,886
 
X 30%
 
  X 30%
 
$2,395
 
$2,666
Total Support:
Old Guidelines
Total Support:
New Guidelines
Child
$3,016
Child
$2,114
Spousal
+ $2,395
Spousal
+ $2,666
 
$5,411
 
$4,780

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
In conclusion, there are significant changes under the new support guidelines. However, the magnitude of those changes will vary greatly from case to case. If you have any questions concerning your support obligations, or any other concerns about your family law case, please contact one of MacElree Harvey's family law attorneys.

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The following article is informational only and not intended as legal advice.
Speak with a licensed attorney about your own specific situation.
© Copyright 2006 MacElree Harvey, Ltd. All rights reserved.

At a glance
Changes in Support Guidelines

The Supreme Court of Pennsylvania recently adopted changes to the child support guidelines pursuant to a mandatory four-year review. The changes will become effective on January 27, 2006.

Total family income, plus the number of children involved, dictates the amount of child support. Under the new guidelines, there are reductions in the amount of support for couples with high level combined incomes.

It is important to note that although these guidelines may mean a reduction in monthly child support payments, the end result may create higher spousal support awards - mitigating the overall impact of the new regulations on total support amounts.