How is Child Support Calculated?
In countries like Australia for example, child support is calculated using a formula that considers the income of both parents, the number of children in the family, and the ages of the children.
The Department for Human Services (DHS) uses a set of six formulas that examines the situation of the parents. These six formulas are a variation of the basic formula used for child support assessment.
The annual rate of child support is often assessed using formula one.
Formula one is the basic formula used for single child support assessments where neither parent has another child support assessment case and both parents provide care for the children.
8 steps are followed to determine the annual rate of child support that each parent will pay under formula one.
First, the child support income of each parent is identified. Then the combined child support income of each parent is calculated, and the percentage of each parent’s income is then calculated.
After this, the percentage of care of each parent is determined and the cost percentage is determined.
Each parent’s child support percentage is then calculated, then the costs of the child are determined by factors such as the parent’s income, the number of children they have, and the ages of the children.
The last step is to determine the annual rate of child support for the child.
By Jumoke Odepe