Child Support

Modification of Child Support Appeal Dismissed as Interlocutory by North Carolina Court of Appeals

Published on: February 28, 2010 | On behalf of Arnold & Smith, PLLC

On October 20, 2009 the North Carolina Court of Appeals dismissed a father’s appeal of an Order modifying child support because it was interlocutory.

The trial court entered its Order modifying child support which required the parties to submit (within 20 days) to the court an affidavit detailing the golf related expenses incurred for the children. It would seem that the parties expended significant sums of money on golf which the trial court wished to consider in rendering its final Order.

The North Carolina Court of Appeals held that, because the Order modifying child custody did not fully dispose of the case, that the Order was interlocutory and not subject to appeal.

Lack of Financial Stability Contributes to Divorce

Published on: February 20, 2010 | On behalf of Arnold & Smith, PLLC

According to an article entitled Five Ways to Save Your Marriage published last week by CNBC, positive financial behavior contributes greatly to the long-term stability of marital relationships. Certainly, this does not come as a surprise to married couples in Charlotte working through these tough economic times.

Conversely, and also not surprisingly, according to reports by the National Marriage Project at University of Virginia, the negative effects of poor money management are one of the leading causes of divorce. Couples who do not manage their money well and contribute to savings together are more likely to accumulate marital and individual debt, which puts a great deal of stress on a marriage.

The National Marriage Project’s 2009 State of Our Unions report indicates that debt accumulation contributes to a sense of financial unease, which in turn increases a couple’s likelihood of fighting over both financial and non-financial matters.

Imputation of Income in Calculation of Child Support Considered by North Carolina Court of Appeals

Published on: February 16, 2010 | On behalf of Arnold & Smith, PLLC

The majority of child support cases in Charlotte are determined using the North Carolina child support guidelines. This is essentially a formula which takes into account a number of basic factors in determining the appropriate amount of child support. One of the most important variables in the child support formula is the income of both of the parents. So, what happens when one of the parents intentionally reduces their income? The trial court may impute income to that parent for purposes of calculating child support.

This issue was recently before the North Carolina Court of Appeals in the case of Thomas vs. Thomas. The trial court imputed $4,000.00 per month of income to the father based upon his actual income (earning $975 per month working part time) in relation to his expenses and the fact that he was living off of, and significantly depleting, his investments in order to maintain his standard of living. The trial court found that the father would be unable to support himself and the children if his investments continued to decrease and that the father acted willfully and in bad faith in refusing to seek “gainful employment” to make up for his investment losses. The Court of Appeals upheld the trial court’s imputation of income to the father as proper.

Self Support Reserve Addressed in Child Support Calculation by North Carolina Court of Appeals

Published on: February 14, 2010 | On behalf of Arnold & Smith, PLLC

The North Carolina Child Support Guidelines provide for a self support reserve. Meaning that, for parents who have an income below a certain threshhold, the formula works differently. On the chart of incomes in the child support guidelines, those with incomes below that threshhold will fall into the “shaded area.” of the chart. Under the guidelines, absent a deviation, the lowest monthly child support obligation that a parent can have is $50 per month.

In the recently decided case of Allen vs. Allen, the North Carolina Court of Appeals addressed a number of issues. One of the issues addressed in this case was the proper application of the self support reserve. In this case, the mother was ordered by the trial court to contribute toward the children’s private school tuition.

Ultimately, the North Carolina Court of Appeals upheld the trial court’s ruling and held that, while the mother’s income did fall within the shaded area and child care and health insurance premiums are therefore not included in the calculation, the mother’s obligation for the children’s extraordinary expenses is unaffected by her low income.

Mecklenburg County Working to Take Over Child Support Enforcement

Published on: January 23, 2010 | On behalf of Arnold & Smith, PLLC

As we have discussed here previously (Mecklenburg County Child Support Cases Affected? Some North Carolina Counties Scrambling for Planned Child Support Enforcement Takeover), North Carolina will no longer bear the responsibility for enforcing child support obligations. Mecklenburg County is one of the counties which currently relies on the state for child support enforcement. The Charlotte Observer reports that Mecklenburg County is evaluating various options for taking over the responsibility for enforcement of its child support cases. Starting July 1, 2010 Mecklenburg County and 27 other counties must take over the enforcement of child support payments for the cases pending in their respective counties.

The issue comes up again for the County commissioners again on Wednesday. Thus far, the evaluations have focused primarily on whether to privatize the service. The lowest bid thus far from a private contractor was $600,000.00. The cost for implementing the program utilizing a consultant and county staff would cost approximatley $1.5 million dollars. Some appear to be in favor of hiring a private company to handle the child support enforcement for at least the first two years while others question whether a private company can be as effective as the current system.

Grappling with Bankruptcies in Divorce

Published on: January 17, 2010 | On behalf of Arnold & Smith, PLLC

According to the Charlotte Observer and the Associated Press, bankruptcy filings in 2009 numbered 1.4 million and are up 32% nationwide.

These tough economic times cannot help but make divorce cases, which can be very difficult when times are good, all the more difficult to manage, settle and take to trial. When real estate prices were up and properties could be liquidated easily,

it was often just a matter of deciding how much of the equity each spouse would receive. Times have changed.

Child Support Modification during this Recession

Published on: January 15, 2010 | On behalf of Arnold & Smith, PLLC

Although families are certainly feeling the impact of a recent downward turn in the economy, nationwide trends indicate that those parents who are paying child support are being hit the hardest. In most cases in North Carolina, child support is calculated using a formula. One of the most important variables in the calculation is the income of each of the parents. Because the amount of support a non-custodial parent is required to pay is usually based on his or her income, a nationwide 10% unemployment rate has made it a near impossibility for many supporting parents to meet their children’s needs.

In North Carolina, child support orders are never final. Child custody and child support orders can always be modified in the case of a substantial change in circumstances affecting the wellbeing of the child – this can include changes in the paying parent’s financial situation. Often, existing child support orders can be modified when a substantial change in circumstances has occurred that renders the non-custodial parent unable to continue to pay the original amount owed. If a parent voluntarily modifies his or her earning capacity, such as in the case of taking a lower paying job, courts are sometimes hesitant to modify child support obligations. However, in the case of a parent who finds his or herself suddenly unemployed and are seeking new employment in good faith, child support obligations can often be modified.

“Deadbeat Moms” in Charlotte, North Carolina? What can lawyers do?

Published on: December 11, 2009 | On behalf of Arnold & Smith, PLLC

As we have discussed here before (In the Battle of the Fit Parents, Breadwinning Moms are Losing Child Custody), more working mothers are losing custody of their children. With these bad economic times, it is reasonable to anticipate that more and more people, moms and dads alike, are falling behind in their child support payments.

The term “Deadbeat Dad” has been in common circulation for years, what about “Deadbeat Mom?”

While the label “Deadbeat” might be fun to throw around about the other parent, especially when a parent is in dire need of the past due child support and is angry, it is my view that most people want to do the right thing and want to take care of their children financially.

Mecklenburg County Scrambling for Planned Child Support Enforcement Takeover

Published on: November 29, 2009 | On behalf of Arnold & Smith, PLLC

Recently, North Carolina’s Department of Health and Human Services’ Division of Social Services announced that the state will no longer be responsible for collecting child support payments from delinquent parties. In most North Carolina cases, child support is calculated according to the Child Support Guidelines. In the past, child support enforcement has always been a function of the state; however, North Carolina counties must assume responsibilities for collecting payments beginning July 1, 2010. The state will save approximately $4 million annually by cutting the enforcement program, which now serves 28 of 100 counties in North Carolina.

The North Carolina Congress established the Child Support Enforcement program in 1975 in order to ensure that parents are taking responsibility for the financial support of their children.

Child Support Enforcement agents work to locate non-custodial parents, establish paternity if necessary, and petition the court to order the payment of child support. Until now, the enforcement of a court order for child support has been the responsibility of the state. Under the new law, NC counties must present a plan to assume that job by January 1, 2010 – a deadline that is quickly approaching for some financially-strapped counties. Preliminary planning indicates that some NC counties plan to place the program under their local Department of Social Services’ umbrella.

In the Battle of the Fit Parents, Breadwinning Moms are Losing Child Custody

Published on: November 23, 2009 | On behalf of Arnold & Smith, PLLC

A very common misconception regarding child custody stems from a real legal doctrine that was recognized by courts in the not-so-distant past: the tender years presumption. Under this judicial doctrine, a child of a “tender age” – typically, seven years old or younger – is presumed to need to stay in the custody of his or her mother, who is presumed to be the most fit parent to raise such an impressionable young child. Since 1994, there are no longer any states in the nation who recognize the tender years presumption; however, most states have replaced this standard with the primary caretaker presumption. The primary caretaker presumption relies on the assumption that whichever parent has been the primary caretaker before the divorce should be awarded custody of the child. This standard is presumed to be in accordance with the child’s best interest, as a custody award to a non-caretaker could be disruptive for the child. Child custody presumptions are favored by states as a preliminary method of informing parties about the likely outcome of the case, as the presumptions are only applied by the court when the custody battle is between two equally fit parents.

Seemingly, the primary caretaker standard feeds into the common misbelief that women are always awarded custody of their child over their deserving husbands’ protests. However, according to a recent study published in Working Mother Magazine, the custodial trend is shifting. In this difficult economy, men are experiencing a higher rate of layoffs – and subsequently, an increase in time spent as the primary child caregiver. Perhaps surprisingly, this study showed that fathers are awarded custody in court at least 50% of the time, a statistic that has doubled over the past decade. Although these statistics are certainly indicative of a much-needed increase in equality in custody determinations, the equally as fit parent who is not awarded custody of his or her child may wonder if the benefit of being the primary breadwinner outweighs the potential risk of losing primary custody.

Whether it comes as the result of shifting social views regarding equal parenting, or as the direct effect of an ill economy, we can certainly expect to see a continual increase in the number of men who are awarded primary or joint custody of their children.