Business and Childcare Expenses in Calculating Child Support

Calculating the amount that a child’s primary caregiver is to receive in child support payments can be complicated. Beyond just comparing the two spouse’s incomes, courts often weigh factors like work expenses, childcare expenses, health insurance premiums, transportation costs, and other expenses. Knowing which of your daily costs will count towards this calculation is crucial to assure you are in the best position in these proceedings.

But can these calculations include expenses like private school tuition and business expenses?

Klein v. Klein

The Klein case featured a husband contesting the amount that he had been ordered to pay in child support payments. His wife had received sole custody of the child, but he argued that certain expenses that she claimed should be counted when calculating her income.

Background

In this case, Wife sought a divorce along with child custody, support, alimony, and equitable property distribution. Prior to the divorce, Wife left for Virginia with the couple’s son to support her aunt following a family loss. While there, Wife received notice from Husband’s attorney that he was accusing her of “absconding” with their young son and threatened to seek emergency custody.

After initial disputes, a consent order awarded her primary custody, child support, and postseparation support. Subsequent court orders granted her additional alimony and property distributions. However, Husband challenged the court’s determination over the amount of child support he would have to pay.

Appeal by the Defendant

Husband challenged the initial determination of child support on three grounds.

First, he argued that the trial court didn’t accurately calculate Wife’s income by failing to account for pension withdrawals and failing to consider her business expenses in the form of tax annuities. However, the appellate court held that non-recurring, one-time withdrawals, like Wife’s pension distribution, did not qualify as income.

Second, Husband claimed that the lower court improperly categorized Wife’s summer camp expenses as childcare costs. However, the court found that the summer camp expenses should be categorized similarly to after-school care, as they facilitated the wife’s work obligations, making them valid work-related costs. The appellate court agreed with this determination.

Finally, Husband argued that he should not be solely responsible for his child’s private school tuition, claiming the court didn’t account for registration fees and future tuition increases.

Final Ruling

However, the trial court noted that it was in the child’s best interest for him to continue at his private school he had been attending since kindergarten, and Husband had not objected to the child staying at his school. As a result, the court included these private school fees as an “extraordinary expense,” which the appellate court agreed was proper. The court also noted that Husband’s characterization that he is “solely responsible” for these education costs was incorrect, as the costs were split based on income and time caring for the child.

For help with your child support issues, a family law attorney with years of experience can be an invaluable resource.