Voluntary Impoverishment in Calculating Child Support in Maryland

In calculating child support in a divorce in Maryland a party cannot voluntary impoverish themselves.Under MD Family Law 12-205(b) the exceptions for voluntary impoverishment are those individuals who have a physical or mental disability or those who are caring for a child under the age of 2 for whom parents are jointly liable for support. The standard in Maryland is that it is voluntary impoverishment when a party makes a free and conscious choice, that is not compelled by factors outside of their control that renders him/herself without adequate resources. When a party is determined to be voluntary impoverished they are imputed with income as determined by MD Family Law 12-201(1).

Child Support in Maryland

To establish child support in Maryland uses a formula that is presumed to be correct. This formula looks at each of the parties incomes and only deducts from that income for child support being paid for children from a prior marriage as well is alimony paid in either current or prior cases. Based on the parties income and the number of overnights that the child has with each of the parents (either joint physical custody or sole physical custody) a Basic Child Support Obligation will be determined. From this basic obligation the only expenses that will be added to the obligation are work related child care expenses, the cost of health insurance for the child, the cost of any extraordinary medical expenses, and in limited cases the cost of private school and/or transportation for the child. Based on these numbers the final child support will be determined. The calculation of child support is outlined in Maryland Family Law Article 12-204.

Private School Tuition as part of a Child Support Calculation in Maryland

Private school tuition typically is not included as a cost for the purpose of child support calculations. However in Maryland the Court has the ability to consider certain factors in order to decide whether the child has a particular educational need to attend private school. These factors may include how the child is currently performing in school, whether or not there is a family tradition of attending private school, whether or not the child was already attending private school prior to the divorce, whether or not the parents have the ability to pay, and any other factor that would bear on whether or not it was in the child's best interest
to attend private school.

Determining what is Income for the Purpose of Calculating Child Support in Maryland

In order to calculate child support in Maryland one must first determine the amount of income of the party paying support. To determine what is income one must look to MD 12-201 of the Family Law Code.
This says:

Actual income

• (b)(1) “Actual income” means income from any source.
• (2) For income from self-employment, rent, royalties, proprietorship of a business, or joint ownership of a partnership or closely held corporation, “actual income” means gross receipts minus ordinary and necessary expenses required to produce income.
• (3) “Actual income” includes:
• (i) salaries;
• (ii) wages;
• (iii) commissions;
• (iv) bonuses;
• (v) dividend income;
• (vi) pension income;
• (vii) interest income;
• (viii) trust income;
• (ix) annuity income;
• (x) Social Security benefits;
• (xi) workers' compensation benefits;
• (xii) unemployment insurance benefits;
• (xiii) disability insurance benefits;
• (xiv) for the obligor, any third party payment paid to or for a minor child as a result of the obligor's disability, retirement, or other compensable claim;
• (xv) alimony or maintenance received; and
• (xvi) expense reimbursements or in-kind payments received by a parent in the course of employment, self-employment, or operation of a business to the extent the reimbursements or payments reduce the parent's personal living expenses.
• (4) Based on the circumstances of the case, the court may consider the following items as actual income:
• (i) severance pay;
• (ii) capital gains;
• (iii) gifts; or
• (iv) prizes.
• (5) “Actual income” does not include benefits received from means-tested public assistance programs, including temporary cash assistance, Supplemental Security Income, food stamps, and transitional emergency, medical, and housing assistance.

Income

• (h) “Income” means:
• (1) actual income of a parent, if the parent is employed to full capacity; or
• (2) potential income of a parent, if the parent is voluntarily impoverished.

Potential income

• (l) “Potential income” means income attributed to a parent determined by the parent's employment potential and probable earnings level based on, but not limited to, recent work history, occupational qualifications, prevailing job opportunities, and earnings levels in the community.

From this definition of income money made from working overtime could be determined to be income however this would be determined based on the courts discretion, which would look to the amount of overtime worked and how readily overtime is available to the party. Income can also be based on continuing payments such as grants for education, unemployment benefits, disability payments, etc. If a party who is ordered to pay child support is not currently employed the court can impute an income on that is determined based on the factors outlined in 12-201(l).

Child Support Modification in Maryland

Whenever there is a situation where the court has entered an order establishing child support that order is subject to further court modification in the event circumstances change. It is important that if there is a material change of financial circumstances that a motion for modification of the child support must be filed immediately. Typically changes occur when incomes increase or decrease or when the living arrangements involving the minor child(ren) have changed. You will find in the family law article section 12 – 104 Modification of Child Support Award the courts authority to modify an existing child support award. It is worth noting that the modification is not retroactive back to a date prior to the date of filing. As such it is very important that once you believe you have a material change of financial circumstances that you immediately file your motion for modification. Another very good case on the definition of a material change of circumstances can be found in Kierein v Kierin 323 A 2d 632.

After Born Children Affecting Child-support in Divorce in Maryland

There are circumstances where a parent has a child from a previous relationship that they are court ordered to pay child support and they have a new child from a different relationship and once again they are the called upon to pay child support. In Maryland the gross income for determining child support will be reduced in calculating the child support needs of the after born child by the amount of pre-existing reasonable child support obligation actually paid for the first child. This is true even if there is no court order for child support affecting the firstborn child. However it will be necessary to produce proof that you are paying child support for the firstborn child by receipts and proof of payment. If you have questions regarding Maryland child-support or divorce in Maryland please feel free to give me a call and I'm happy to answer your questions for you right over the phone at no cost to you. 1-888-760-7339

Child Support and Divorce in Maryland

The court may order child-support retroactive back to the date of the filing of the petition that request child-support. The court also has the authority to require a parent to include the child on the parents health insurance policy is important to remember whenever you are seeking child-support that you must file the short form financial statement along with the pleading seeking the child-support payment. You can find this short form financial statement on my website. It is important when pursuing a child-support claim to have proof of your income as well as proof of your insurance premium as well as proof of child care cost and extraordinary medical expenses affecting the minor children. If you have questions regarding divorce in Maryland and Maryland child-support issues please feel free to call my office at 1-888-760-7339. We are happy to answer your questions for you right over the phone at no cost to you.http://www.divorceinmaryland.net/

Financial Statements and Divorce in Maryland

Whenever you have filed a complaint in a domestic matter in the state of Maryland and you are seeking either child-support or alimony it will be necessary to file a financial statement. In the case of a claim seeking only child support then you will file a short form financial statement. I have provided a link on my website to the forms necessary to be filed in the divorce in Maryland. Please feel free to call me if you a family member or a friend is in need of a divorce lawyer in Maryland. I will answer your questions over the phone at no cost to you 1-888-760-7339.

http://www.courts.state.md.us/family/forms/dr30.pdf

Extracurricular activities in a Maryland child-support case

In child support cases involving above guideline incomes the court does have the authority to consider extracurricular activities as part of the child support calculation. While it is recognized by the court in Horsley v. Radisi, 132 Md. App. 1 750 A.2d 692, 705-706 (2000) guideline cases only recognize childcare, extraordinary medical expenses, the cost of attending special or private elementary or secondary schools and school transportation expenses can supplement the basic guideline award. The trial court is not permitted to add the cost of discretionary activities such as camp, music lessons, tutoring, gifted and talented program even where these activities are desirable or beneficial to the basic child support award.

Specifically, the court may find the application of the guidelines unjust or inappropriate and if the court so finds, it is required to provide a written or oral finding explaining the reasons why it has departed from the guidelines and how this departure serves the best interests of the children.

In above-guidelines cases, children's expenses including the cost of extracurricular activities may be considered and added to the award of child support. Voishan v. Palma, 327 Md. 318, 322, 609 A2d 319 (1992).

Family Law § 12-204(i) permits the court, to add the cost of private school to the basic award of child support. A court may depart from the guideline and require a parent to pay for educational tutoring an academically challenged or gifted student requires to meet the child's particular educational needs.

In an appropriate case the court may also depart from the guidelines and enable a child, who excels in a particular area e.g. art, music or athletics to pursue appropriate training to enhance these skills. However, justifying a departure from the guidelines requires more than a parent testifying that a child is intellectually "gifted" or that the public school cannot meet these educational needs. see the Horsley case.

If you have questions regarding divorce in Maryland or child-support issues in Maryland please feel free to give me a call at 1-888-760-7339. I'm happy to answer your questions for you over the phone at no cost to you.

Child Support in Maryland

Child-support in Maryland also addresses the issue of voluntary impoverishment. In the court's opinion Wills v Jones 340 Maryland 480 (1995) the court addressed the issue of voluntary impoverishment. The court determined; whether a parent is voluntarily impoverished is a question only of whether the parent's impoverishment was voluntary. Examples are found in circumstances where a parent leaves a job to accept the position paying less. To the extent the decision was made voluntarily to leave the higher-paying job the parent is voluntarily impoverished. There is no need for the reduced pay to occur in conjunction with a desire to avoid child-support as a basis to establish voluntary impoverishment Goldberger v Goldberger.

Once it is established that the reduced pay is the product of a voluntary decision the only other next question revolves around the voluntarily impoverished parent's earning capacity or potential income. Prior earning history as well as vocational assessments are often times used to determine a parents earning capacity. The court looks at a number of factors in determining potential income including age; mental and physical condition; accident; educational background, special training or skills; prior earnings; efforts to find and retain employment; the status of the job market in the area where the parent resides; actual income and any other factor bearing on the parents ability to obtain funds for child support.

A parent is not excused from support because of a tolerance of or a desire for a frugal lifestyle. It has been noted by the court in Maryland that the individual's decision to move from his residence to a new residence where he earns less money is not the basis for voluntary impoverishment as it presents a unreasonable restriction on a person's ability to relocate Moore v Tseronis 664 A 2d 427.

If you have questions regarding child-support in Maryland please feel free to give me a call at 1-888-760-7339.

Child Support in Maryland

Child-support in Maryland that section 12 – 202 provides that there is a rebuttable presumption that the amount of child support which would result from the application of the child support guidelines is the correct amount of child support to be awarded. The presumption however can be rebutted with evidence that shows that the application of the guidelines would be unjust or inappropriate. An example of the court application of this concept is found in the case of Horsley v Radisi 750 A 2d 692 (2000). Among other issues addressed in this case the court addressed the issue of extracurricular activities in the form of soccer camps, karate lessons, and violin lessons for a gifted and talented child as cost to be included in the child support calculations. The court differentiated between cost incurred for discretionary activities such as camps, music lessons, tutoring and gifted and talented programs versus expenses for remedial tutoring and gifted and talented educational programs. In pursuit of further clarification the court did not specifically exclude a deviation from the Maryland child-support guidelines to facilitate appropriate training for a child who excels in a particular area whether art, music or athletics with the caveat that the public schools cannot provide that appropriate training.

If you have questions regarding child support in Maryland please feel free to give me a call at 1-888-760-7339. I will answer your questions over the phone at no cost to you.

Child Support MD

Child-support in Maryland can be established by an initial pleading seeking child support from the other biological parent. Already existing child-support orders can be modified if there has been a material change of circumstances which would warrant a modification of the child support. In either of those cases the child support is retroactive back only to the date of filing. Additionally, I have represented clients who received child-support arrears back to the date of last payment when the payor parent failed to file a motion for modification when circumstances changed. That is an uncommon result which I would not expect to realize for my client had the payor spouse become disabled or unemployed through no fault of their own. If you have questions about child support in Maryland or any other issue involving divorce in Maryland please feel free to call my office we will discuss your case over the phone at no cost to you. 1-888-760-7339

Child-support in Maryland

Voluntary impoverishment can be found in family law article 12 – 201 where it states if a parent is voluntarily impoverished child support may be calculated based upon the termination of potential income. However a determination of potential income may not be made for a parent who is unable to work because of a physical or mental disability or is caring for a child under the age of two from the parents are jointly and severally responsible. Voluntary impoverishment is generally found in a circumstance where a person has taken a reduction in salary to avoid his or her support obligations. As such it can be found in circumstances where an individual is working at less income than they have the ability to earn and it is done for the purpose of avoiding a child support obligation. It is rare that a parent would go to such extremes to avoid paying child support however I have seen those circumstances occur. Mainly I see those occasions arise where the paying spouse changes jobs frequently to avoid wage withholding liens. If you have questions on child support or any other matter involving child-support in Maryland please feel free to call me at 1-888-760-7339 I will answer your questions over the phone at no cost to you.

Child Support in a Divorce in Maryland

School and transportation expense may be divided between the parents in proportion to their adjuste actual income. Family law article section 12–204 includes any expense for attending a special or private elementary or secondary school to meet the particular educational needs of the child or any expense for transportation of the child between the homes of the parent. "Particular educational needs" was defined in Witt v Ristaino 701 A2d 1227. The court held that the trial judge should consider a nonexhaustive list of factors when determining whether a child has a particular educational need. This would include the number of years the child has been in attendanc at the particular school. The child' performance while in the school, family history, parents choice, any particular factor that may impact upon the child's best interest and the parties ability to afford the private school education. If you have questions regarding divorce in Maryland please feel free to give me a cal I will answer your questions over the phone at no cost to you 1-888-760-7339.

Child Support in Maryland

Child-support in Maryland utilizes a mathematical formula for calculating the noncustodial parents obligation to support the children. Income from both parties is calculated and adjusted for health insurance premiums incurred to benefit the children, daycare cost related to work, and in certain circumstances private school education are added to the child-support guidelines and the child-support obligation calculated. One other added factor to consider is the number of overnights when the children are with the otherwise noncustodial parent. Once the threshold of 128 overnights is realized the same factors as set forth above are plugged into the mathematical formula however the mathematical formula for determining child support in Maryland is itself changed. Often times having very dramatic impact on lowering the noncustodial parents child-support obligation. One other element to take into consideration are travel cost incurred to facilitate the visitation. Often times the court will entertain arguments that the child support amount should not be paid in full and a deviation should be allowed when the noncustodial parent lives so far away from the children that they incurs a cost that they cannot afford, along with child-support payments, to see the children. If you have questions on child-support in Maryland please feel free to call me I will discuss your case over the phone at no cost to you. 1-888-760-7339.

Child Support Maryland Income Defined

In a Maryland child-support case the law has defined what income will be included in calculating the child support obligations. Below is an excerpt from that statute in Maryland law which defines income for child support purposes in a Maryland child support case.
b)(1) "Actual income" means income from any source.(2) For income from self-employment, rent, royalties, proprietorship of a business, or joint ownership of a partnership or closely held corporation, "actual income" means gross receipts minus ordinary and necessary expenses required to produce income.

(3) "Actual income" includes:

(i) salaries;

(ii) wages;

(iii) commissions;

(iv) bonuses;

(v) dividend income;

(vi) pension income;

(vii) interest income;

(viii) trust income;

(ix) annuity income;

(x) Social Security benefits;

(xi) workers' compensation benefits;

(xii) unemployment insurance benefits;

(xiii) disability insurance benefits;

(xiv) for the obligor, any third party payment paid to or for a minor child as a result of the obligor's disability, retirement, or other compensable claim;

(xv) alimony or maintenance received; and

(xvi) expense reimbursements or in-kind payments received by a parent in the course of employment, self-employment, or operation of a business to the extent the reimbursements or payments reduce the parent's personal living expenses.

(4) Based on the circumstances of the case, the court may consider the following items as actual income:

(i) severance pay;

(ii) capital gains;

(iii) gifts; or

(iv) prizes.

(5) "Actual income" does not include benefits received from means-tested public assistance programs, including temporary cash assistance, Supplemental Security Income, food stamps, and transitional emergency, medical, and housing assistance.


If you have questions regarding child support in Maryland please feel free to give me a call at 1-888-760-7339. I am happy to answer your questions over the phone at no cost to you.

Child Support in MD

Child-support in Maryland is based upon a mathematical calculation that is outlined in the child support guidelines. It is essentially adding each spouse's gross income calculating the proportionate share of the income then calculating each parties financial obligation to pauy child support consistent with that percentage of contribution. Health insurance premiums are calculated in too adjusting the gross income. Child care costs are also calculated as well as uninsured health cost and education cost as they relate to, amoung other things, private schools. The court will allow deviations from the child support guidelines to facilitate visitations if it is proven that it is in the children's best interest to reduce the child-support payment. One other additional major factor affecting the amount of the child support to be paid is the number of overnights when the children are with the otherwise noncustodial parent. Once the threshold of 128 overnights is reached the mathematical formula for calculating child support is modified for that shared physical custody arrangement. If you have questions regarding Maryland child-support or child-support arrears or divorce in Maryland please feel free to give me a call. I will answer your questions over the phone at no cost to you 1-888-760-7339.

Divorce in Maryland Deviation from Child Support Guidelines

The law in Maryland does give the judge discretion to deviate from child support guidelines. The judge must explain why the deviation is in the child's best interest. However a deviation will often times be granted to facilitate vi station over distances to offset travel cost as an example. Also, if the non custodial spouse actually pays for after born children, they can also seek a deviation. The law likes to reward the person who pays child support whether court ordered or not. Ultimately the court can allow a deviation where is it justified to do so and in the child's best interest. If you have questions on divorce in Maryland please feel free to call me. 1-888-760-7339.

Child Support Extraordinary Medical Expenses

As part of the Maryland child support guidelines extraordinary medical expenses can be added to the monthly child support obligations as those costs are incurred. The definition of extraordinary medical expenses is found in the family Law article section 12-201. It means uninsured expenses over $100 for a single illness or condition it includes among other things, uninsured, reasonable, and necessary cost for dental, physical therapy treatment of chronic problems, professional counseling psychiatric therapy for diagnosed mental disorder. Typically these costs are apportioned between the parties consistent with their income ratios. However I have seen many times where the court simply requires each party to pay 50%. Which is not a bad deal for the financially dominant former spouse. If you have questions regarding these issues or any other issues involving a Maryland divorce action or personal injury and malpractice in Maryland please feel free to call 1-888-760-7339

Child Care Cost in Divorce in Maryland

In a divorce in Maryland child support is based upon mandatory guidelines. One of the inclusions into the child-support calculation are actual childcare cost incurred by the custodial parent. The inclusion of childcare cost has a dramatic impact on increasing the amount of money to be paid by the noncustodial parent each month as payment. Below is outlined the Maryland statute on childcare expenses. As you will see the child care expense is properly included only where it is an actual costs incurred by the custodial parent due to employment or job search. As such if the custodial parent is incurring child care costs in pursuit of education or simply because they does not wish to keep an eye on the child every day the cost is not properly included in the child-support calculation. If you have any questions regarding child-support in a divorce in Maryland please feel free to give me a call at 1-888-760-7339. I am happy to answer your questions over the phone and will do so at no cost to you.

(g) Child care expenses.-

(1) Subject to paragraphs (2) and (3) of this subsection, actual child care expenses incurred on behalf of a child due to employment or job search of either parent shall be added to the basic obligation and shall be divided between the parents in proportion to their adjusted actual incomes.

(2) Child care expenses shall be:

(i) determined by actual family experience, unless the court determines that the actual family experience is not in the best interest of the child; or

(ii) if there is no actual family experience or if the court determines that actual family experience is not in the best interest of the child:

1. the level required to provide quality care from a licensed source; or

2. if the custodial parent chooses quality child care with an actual cost of an amount less than the level required to provide quality care from a licensed source, the actual cost of the child care expense.

(3) Additional child care expenses may be considered if a child has special needs.