How Much Child Support Can You Expect to Pay In Your New Jersey Divorce?

Divorced parents in New Jersey are legally obligated to financially support their children until emancipation.   A child is most commonly deemed emancipated upon age 19 or completion of a full-time college education.

So if you’re separated or divorcing from your spouse, how much child support can you expect to pay in New Jersey?

The amount of child support is generally calculated once you and your spouse agree on a custody and parenting time arrangement.  The arrangement should outline at a minimum (1) the number of overnights the children will spend with each parent and (2) which parent will have primary residential custody the children.

So generally, if you’re the “noncustodial parent,” you could expect to pay child support for your children to your former spouse.

What is your child support amount based on?

The state of New Jersey developed the “New Jersey Child Support Guidelines” to ensure that divorced parents share the financial and healthcare responsibilities of raising their children.

What is included as “income” for calculating child support?

Each parent’s total income from all sources is used. Total income includes a variety of sources, including employment income, overtime, bonuses, tips, and commissions.

Taxes and other specific deductions are then subtracted from each parent’s total income.  Both parents’ net income is then added together.  The child support guidelines use the parents’ combined net income to calculate the amount of child support to be paid based on the number of children.  Each parent contributes to the child support amount in proportion to their respective percentage share of combined net parental income.

How do your current child expenses affect your child support amount?

• Parenting Time

The number of overnights that each parent spends with the children is converted to a percentage.  This percentage is then applied to each parent’s proportional share of the above child support amount.

This is because generally, the more overnight parenting time a parent spends with the children, the greater the amount of expenses that parent is presumed to be paying for the children’s expenses while the children are with the parent.

• Medical Insurance Premium

Whichever parent provides the health insurance for the children is generally entitled to a “credit” for how much that parent pays for the child’s share of the health insurance premium.

How is the child support amount calculated for higher-income families?

For parents whose combined net income exceeds the Guidelines threshold of $187,200 per year ($3,600 per week), New Jersey law requires that child support be calculated to account for the greater financial resources available and the higher expenditures typically made in higher-income families.

Therefore, for such higher-income families, a base child support amount is determined using the Guidelines formula.  That base amount is then supplemented with an additional support amount based on the remaining family income, the children’s needs, and certain other statutory factors.  Private elementary or high school and extracurricular expenses are examples of such expenses.

Which child expenses does your child support payment cover?

Child support payments cover specific types of expenses incurred by the primary residential parent.  To found out which expenses are covered by child support, take a look at this post.

How can you calculate your child support amount under the New Jersey Child Support Guidelines?

Your lawyer can calculate the appropriate child support amount by using specialized software available to attorneys and court staff.  Or you can access a New Jersey child support calculator offered on the New Jersey child support website here:

But calculating your child support amount is typically not straightforward.  Essentially all components that go into calculating your child support  – which might include income for you and/or your spouse, parenting time, health insurance, includable child expenses, or daycare costs – are subject to interpretation.  Therefore, it’s your lawyer’s job to advise you and advocate on your behalf when negotiating with your spouse or the other lawyer to obtain the best result for you and your children.

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Four Key Ways to Save the Family Business from Sibling Squabbles

 

Surprisingly, according to a recent study in psychology today, one-third of adults have distant or contentious relationships with their siblings.

When two or more siblings work in the family business, hostilities from old sibling rivalries can jeopardize the very survival of the business in the wake of the founder’s impending retirement or death.

What causes sibling rivalries in the first place?

Oftentimes, siblings receive unequal treatment or affection from one or both parents while growing up.   Or parents and other relatives label each child, perhaps as the smart one or the friendly one.  As a result, siblings can learn from a very young age they need to compete for their parents’ attention or live with the labels imposed on them.

Such struggles often continue into adulthood and can become intensified when the family runs a business together.  Here are 4 key ways to improve harmony between siblings and preserve the family business.

1.          Work outside the family business.

Working outside the family business often helps younger generations gain outside exposure to alternative business techniques.  But the primary benefit can be to foster each sibling’s confidence and maturity and help them each build a personal foundation for success.

2.          Play to each sibling’s strengths.

Ideally, running the family business should be shared, not divided.  This is best achieved by recognizing what each sibling is particularly good at and assigning roles accordingly.

Brothers Walt and Roy Disney are a perfect example.  Walt was the dreamer and visionary for Disney.  His older brother Roy was the detail-oriented businessman with the financial acumen to achieve the company’s vision.  This successful collaboration resulted in the empire that Disney is today.

3.          Communicate freely and often.

Be sure to communicate all expectations upfront and put it in writing.  It’s important for siblings to treat each other as they would a non-family business partner.  For instance, by not taking your sibling for granted or assuming you can each read each other’s minds.

Likewise, consult each other on key decisions that affect the daily and long-term planning of the family business.  In doing so, each sibling brings his or her unique skills and abilities to the table for a successful family business.

4.          Mediate financial risk-based conflicts.

Sibling conflicts can also arise when each sibling has different ideas about how the business should be run or how key decisions should be made.  For example, one brother might see an opportunity to diversify the business through acquisition, while the other enjoys the stability that the business has achieved.  In these cases, business meetings with a neutral mediator or essential for finding an optimal strategic solution.

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Save Big on Divorce Lawyer Fees with this Eight-Step Do-It-Yourself Divorce Plan

The key to getting a Judgment of Divorce from the court is for both you and your spouse to first sign a divorce agreement, commonly called a Marital Settlement Agreement.

The Marital Settlement Agreement resolves all issues relating to your marriage.  These typically include child custody, parenting time, child support, college costs for children, alimony, and division of the marital assets and debts.

If you and your spouse are both committed to settling your divorce between yourselves (preferably with legal advice for each of you), here’s a general 8-step divorce plan that can save you big on divorce lawyer fees.

1.     Agree about the Kids.

Draft up a written custody and parenting time agreement for your children.  You can use this form as a guide.

2.     Inventory the Marital Assets and Debts

Make a joint list or spreadsheet of all marital assets and debts owned in either or both your names.  For the assets, include real property, bank accounts, investment accounts,  and all pension or retirement accounts (IRAs, 401ks,  pension and/or profit-sharing plans, annuities).  For any accounts in one spouse’s name, it’s generally a good idea to exchange account statements for the last three years or so to identify additional sources of income and any large withdrawals.  Also include personal property, such as furniture, art, and jewelry.

Significantly, if there are any businesses, or premarital, partially premarital, inherited, or other more complex assets, you should consult with an experienced divorce and family lawyer about how such assets are treated under New Jersey law and to protect your interests.

For the marital debts,  it’s generally a good idea for each of you to obtain a current credit report that will list the outstanding debts in each of your names.  These typically include mortgages, home equity lines of credit, and outstanding credit card balances.  Include the current approximate values and balances for each asset and debt.

3.     Gather Insurance Policies

Make a joint list of all health insurance policies, health savings accounts, life insurance policies, and safe deposit box contents.

4.     Calculate the Marital Income.

Make a separate list or spreadsheet for joint marital income.   Separate the list into two columns, one for each spouse.   Identify all sources and amounts of income for each of you.   Have each column totaled.

If there is any employment compensation involving bonuses, commissions, stock options or other incentive compensation,  be sure and consult with an experienced divorce and family lawyer as to how such compensation is valued and divided under New Jersey law.

5.     Calculate Your Expenses.

On the income spreadsheet above, list and total each type and amount of all current expenses for each of you.   Include expenses for the children and college costs, if being paid.  Make sure all expenses are accurate.

6.     What Does the Future Hold?

Identify what you would each like your post-divorce financial life to look like.  For example,  does one of you want to keep the marital home?  Do you want to sell the home and/or other real property and each purchase separate residences?  How much do each of you want to have saved in retirement?   Use your goals to list anticipated post-divorce expenses, including future college costs, if any.

7.     What Will You Need?

Ideally, have a financial or tax advisor for each of you run a cash flow analysis for each spouse.   The cash flow analysis will incorporate your income, assets, debts, and expenses so that you can each get an idea as to which settlement scenarios would work best to achieve what you each want after the divorce.  The cash flow analysis would also account for tax consequences with respect to income and assets.

8.     Your Lawyer’s Role

Many separated or divorcing couples approach lawyers without any prior planning.  As a result, they leave it up to the divorce lawyers to do all work, which they’re more than happy to do, charging you big fees along the way.

By doing the legwork yourself and sharing your divorce plan with each lawyer, you use your lawyer strategically and cost-effectively.  For instance, you and your spouse should each consult with separate attorneys to make sure you don’t overlook anything significant and to advise you on alimony and other applicable New Jersey laws.

Your lawyers can also help generate settlement options and conduct strategic negotiations on your behalf.  Ultimately, the lawyers will draft the formal Marital Settlement Agreement and file the legal documents with the court required to obtain your Judgment of Divorce.

Not only can you save big on divorce lawyer fees, but you will also be in charge of your own future and the future of your kids.

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How Marital Mediation Can Help Save Your Marriage

It’s not uncommon for couples to struggle in bad marriages, often for many years.  In such instances, while the marriage might not be good or even healthy, it’s not quite bad enough for divorce.

Some couples consider getting help with marriage counseling.  What many don’t know, however, is there’s an alternative that can save your marriage.

It’s called marital mediation, where couples work together with a trained mediator.  The mediator uses proven conflict resolution techniques to identify sources of conflict and open up and improve communication.  As a result, couples learn to use new techniques to identify and productively address conflict in their own marriage.

How Marital Mediation Can Help You

Very often, lack of communication or poor communication are the root causes of why marriages break up.  Fortunately, these skills essential for successful marriages can be taught and learned.  Marital mediation helps couples understand the source of conflict and to see a positive future for the marriage.

Other times, problems arise in a marriage as the result of difficult events, such as job loss, serious illness, or infidelity.  Marital mediation can help spouses work together as a team with greater understanding.

Divorce mediation uses many of the same conflict resolution strategies as marital mediation.  Ironically, spouses in divorce mediation will often comment that if they knew what they learned about conflict resolution in their divorce mediation while they were married, they might not have divorced.

How Does Marital Mediation Differ from Marriage Counseling?

Marriage counseling is practiced by a mental health professional who uses therapeutic analysis and insights.   In contrast, marital mediation is conducted by a mediator and uses conflict resolution techniques rather than therapeutic techniques.

For more information or to find out if marital mediation is right for you, please click here.  Or feel free to call or email me directly at mhart@michelehartlaw.com.