When Does a Decrease in Income Justify a Modification of Child Support in North Carolina?

Modification of child support may be an option if there has been a material change in circumstances. Parents often use a change in income to justify a recalculation of child support, but this is not always a relevant reason.

Groseclose v. Groseclose

Father in Groseclose v. Groseclose had previously been ordered to pay child support and filed a motion to modify shortly after this judgment by the trial court. He alleged that his income had reduced substantially and that he could not afford the previously ordered support amount. Father made late payments for much of 2016 and made no payments for several months that year. Then Mother filed a motion for contempt.

Father filed numerous motions to modify child support. Later divorce proceedings resulted in an award of alimony for Mother, and Father also filed to modify this support. In response to Father’s many motions to modify support, the trial court determined that Father had the ability to pay and denied his motions. He appealed.

The Court of Appeals had already determined in previous cases that a salary or income reduction does not automatically entitle the paying parent or spouse to a reduction in support payments. Instead, the relevant factor is the overall circumstances of the parties. The appellate court’s position on the impact of income on support payments was also applied in Groseclose.

Father’s financial situation had not changed substantially from the time the support award was entered, despite having a reduction in his income. The Court of Appeals affirmed the ruling by the lower court regarding Father’s ability to pay child support and alimony as previously ordered.

Father lived with his girlfriend and had use of her bank account. Additionally, he had employment income from his job at Lowe’s, received significant money from his girlfriend each month that the Court deemed was a gift, and benefited from his girlfriend’s payment of his living expenses.

Because gifts are considered a form of income for the purposes of child support calculations in North Carolina, the money provided to Father by his girlfriend could be included as income. Ultimately, Father’s net income based on these factors was determined to be $5,904.44, which was not a substantial change from his previous income of $6,273.26 at the time of the support order.

Father in Groseclose failed to show a substantial change in circumstances that would have warranted a reduction in his support obligations.