Wednesday, October 9, 2013

Child support presumption maximum is going up in Texas on September 1, 2013

Child support presumption maximum is going up in Texas on September 1, 2013:
According to the Texas Family Code (TFC) § 154.125(a-1), every 6 years the child support presumption maximum (currently $7,500) is adjusted to reflect inflation rates. Those 6 years will restart again on September 1, 2013 with the new child support presumption maximum increasing to $8,550 (this new amount will be used in this blog and referred to as “Presumption). Please note child support may differ where the parties have an agreement not using the typical child support calculations or where a child’s proven needs exceed the guidelines. 

HOW IS CHILD SUPPORT CALCULATED?
Child support is based on the obligor’s (the person paying the child support) monthly net resources, such as salary, royalty income, net rental income, self-employment income, and the like. Items not included in net resources includes return of principal/capital on a note not included in net resources, accounts receivable, benefits paid through Temporary Assistance for Needy Families, payments for foster care, and net resources of a new spouse. From an obligor’s monthly net resources a percentage is taken to produce the child support amount. Texas uses the following percentages to calculate child support:


1 children 20% of Obligor’s Net Resources
2 children 25% of Obligor’s Net Resources
3 children 30% of Obligor’s Net Resources
4 children 35% of Obligor’s Net Resources
5 children 40% of Obligor’s Net Resources
6+ children Not less than the amount for 5 children.


Please note these percentages differ where the obligor is paying child support to children from more than one
obligee (parent receiving the child support for the benefit of the child). For these percentages please refer to TFC § 154.129.


HOW MAY MY CHILD OBTAIN CHILD SUPPORT ABOVE THESE PERCENTAGES?
A child may obtain child support greater than the above percentages (including the Presumption) where it can be shown the child’s needs require more support. Typically these are in cases where the child needs greater child support for medical reasons, education, extracurricular activities, and the like. TFC § 154.123 includes a full list of things the court might consider in setting child support different from the above percentages. It is important to keep in mind that these percentages may also be reduced when looking at the list in this section of the TFC. 


WHAT DOES THE CHILD SUPPORT PRESUMPTION MAXIMUM MEAN?
The child support presumption maximum is the amount Texas has deemed to be the cap on a regular child support case (a case where the child’s proven needs are not greater than the presumption). Texas has determined where a parent makes the Presumption or more in monthly net resources, the parent is only liable to pay the percentage listed above against the Presumption. This means that an obligor who makes $8,550, the Presumption, in monthly net resources and an obligor who makes $10,000 in monthly net resources both pay $1,710 in monthly child support for 1 child as the Presumption is the cap (where the child’s proven needs are not greater). As noted earlier, the Presumption does not apply to those parties who have an agreement straying away from it. 


WHO IS AFFECTED?
This increase, to begin on September 1, 2013, affects parties with cases pending or filed after this date. It is suggested if you have a case that is to be finalized between now and this date to begin using the Presumption so you do not have to head to court again. Parties who have their case finalized and meet the Presumption are also affected, but action is typically necessary (the Attorney General’s Office reviews child support matters every couple of years and will automatically implement the Presumption once they review your case).

Parties who have an agreement different from the standard child support calculations are not affected by the increase unless the parties agree or a modification is begun. Additionally, obligor’s who make less than the Presumption are not affected. 

HOW MAY I OBTAIN MORE CHILD SUPPORT IF THIS APPLIES TO ME IF MY CASE IS FINALIZED?
Where a case has been finalized and the Presumption is met the parties may voluntarily agree to increase the child support or where an agreement cannot be made, the obligee must notify the Attorney General’s Office. Whichever route is taken, please note modification must be made in court.

As always, if you have any questions regarding the law it is best to seek the help of an attorney. 

By: Elizabeth Oaxaca
Elizabeth Oaxaca is an Associate at Alimohammad & Zafar, PLLC. She specializes in immigration, family, probate, and guardianship law. She volunteers her immigration skills with several organizations in the Houston and surrounding areas, and has written on numerous immigration topics. She received her undergraduate degree from the University of St. Thomas in 2008 and her law degree from the University of Houston in 2011.

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