Child Support Not Spent On Kids

When Child Support is calculated, there is a presumption, and a requirement in many states, that the primary residential parent will spend a percentage of their income on the child(ren). In most states, the incomes of both parents are included in calculating the child support amount.

From this total the child support amount is taken from the guidelines. Added to this is the cost day care, medical insurance, etc. At this point, the income of each parent is divided by the total income of both. This shows what percentage a parent's income is of the total.

Example From Actual Case

Mother

$

30,000

Father

$

86,000

Total

$

106,000

In this example, the father (obligor) owes 81% of the total obligation or roughly $21,600 a year (based on average percentage) in support of one child, but the mother (obligee) is also obligated to spend $7500 a year on the child, for a total of $29,100, or $2425 a month.

The problem is in over 90% of the cases, only the Obligor is required to prove the payment of the child support. When the income of either parent increases, their obligation increases, but the child support laws obligate that the child only clearly benefits from the increase of the obligor's income. The obligee is under no requirement to spend more on the child.

By having both parents paying into a trust fund, the custodial parent than provides the fund with proof that the money is being spent on the child, such as a percentage of rent, utilities, food, etc. In addition, the cost of necessities, such as clothing, shoes, and other expenses exclusive to the child, with receipts and clothing tags or proof of purchase cut from the package, would be submitted.

All this follows in accordance with Federal Laws dating back 100 years as regards Trust Funds that have been established for Guardians to draw from when parents have been killed, such as in an accident. Also in cases involving child stars (The Coogan Act-1939) where the law is designed to prevent their parents from spending the money for their own uses.

Any money left in the account would than collect interest and be available for emergencies, or special expenses, such as part of the cost of a car for a teenager, or a college education. If is not used up on the child, then it can be distribute to them at age 25.

Using this method would mean the child is getting full advantage of the support owed by both the parents, and not just one parent.