Insurance Payments: Child Support Or Not?

Child support is a payment from the higher-income parent to the lower-income parent that covers the basic living necessities of the child, including food, housing, and clothing. While child support laws vary across states, it generally covers the cost of raising a child, such as food, clothing, shelter, education, transportation, and extracurricular activities. In most cases, child support also includes payments for health insurance and reasonable healthcare costs not covered by insurance.

Child support payments and health insurance

Child support is a payment from the higher-income parent to the lower-income parent that covers the basic living necessities of the child. These payments are intended to cover the costs of raising a child, including food, housing, clothing, school supplies, daycare, and activities. In most cases, child support is paid by the non-custodial parent to the custodial parent.

In addition to these periodic payments, child support may also include the provision of health insurance for the child. This is often referred to as medical support and is usually provided by the parent with better employee-covered benefits. The cost of health insurance for the child is typically factored into the overall child support calculation, with both parents sharing the cost.

In some states, such as Ohio, the child support order includes a separate monthly payment specifically for medical support. This ensures that the child's health care expenses are covered, including insurance premiums, out-of-pocket costs, and any extraordinary medical expenses.

It's important to note that child support laws vary among states, and it's recommended to refer to the specific guidelines and calculators provided by each state to determine the amount of child support owed, which takes into account factors such as income, the number of children, and existing health insurance coverage.

Additionally, modifications to child support orders can be made if there are significant changes in circumstances, such as a loss of job or an increase in the child's needs.

Who pays child support?

Child support is a parent's court-ordered payment to help with the costs of raising a child. In most custody arrangements, a child lives with one parent most of the time. This is the "custodial" parent. The "non-custodial" parent has visitation rights on a regular basis and is responsible for making child support payments.

The non-custodial parent is often the one who pays child support, but this is not always the case. In joint custody arrangements, both parents share the responsibility of day-to-day care of their child or children. In these cases, child support obligations still apply, but the amount owed may be affected by factors such as income, the amount of time each parent spends with the child, and the costs of healthcare and childcare.

In the state of Michigan, child support guidelines are based on factors including each parent's income and the number of nights per year that the child spends with each parent. In Texas, child support is based on the number of minor children and the obligor's "net resources", which include most sources of income such as employment income, retirement benefits, and social security benefits.

Child support normally stops when a child turns 18, but can continue until the child graduates from high school or reaches a certain age, depending on the state. In Texas, for example, child support can continue indefinitely if the child has a disability.

Child support and taxes

Child support payments are not considered taxable income for the recipient, nor are they tax-deductible for the payer. Child support is considered "tax neutral" because it is regarded as payments for a child's expenses. In other words, child support payments are treated as if the payer had made the purchases themselves.

However, the payer of child support may be able to claim the child as a dependent if they are the custodial parent, or if they are the noncustodial parent and the custodial parent signs a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This form allows the noncustodial parent to claim the child on their tax return.

In the US, state child support agencies can submit information about people who are behind in child support payments to the Department of the Treasury. If the child support debt meets the federal requirements for a federal tax refund offset, the noncustodial parent will receive a Pre-Offset Notice. This explains why their case was submitted to the offset program and includes information about federal tax refund offset, administrative offset, passport denial, and other actions the child support agency may take. When Treasury’s Bureau of the Fiscal Service processes a tax refund, it matches the noncustodial parent’s debt and intercepts part or all of the tax refund, which is then sent to the state child support agency to pay toward the past-due support.

Child support and remarriage

Remarriage can affect child support payments, but this depends on the circumstances. Child support payments are typically set by the courts at the time of divorce, and are based on the income of the parents. If you are receiving or making child support payments, you may be concerned about how your payments will be affected if you remarry. Here is an overview of what you need to know about child support and remarriage.

Child support obligations are calculated using state guidelines, which take into account factors such as the income of both parents, the number of children, custody arrangements, and the children's daily needs. The amount of child support that a person is required to pay is set at the time of divorce by a court order. Once an amount is set, the party responsible for making child support payments must make payments on time and in full each month.

Remarriage and Child Support Payments

Remarriage of the Recipient of Child Support Payments

If you are currently receiving child support payments and are planning to remarry, you may be concerned that your payments will be reduced due to the income of your new spouse. However, it is uncommon for child support payments to be reduced based on remarriage. The court recognizes that the legal parents of the child are financially responsible for the child, not the child's new stepparents.

However, if your new spouse provides significant financial support to the child, your ex-spouse may petition the court to reduce child support payments. In the case that your new spouse wishes to legally adopt your child, child support payments from your ex-spouse will cease, as they will have to legally relinquish their parental rights.

Remarriage of the Paying Parent

If you are paying child support and are planning to remarry, you may be concerned that your payments will increase due to your increased household income. However, the courts do not consider it the obligation of your new spouse to provide financial support for children from a previous marriage. As such, your child support payments should not change unless your ex-spouse files a petition for modification of the child support payment.

Modification of Child Support

If either spouse's financial circumstances have changed substantially, they may file a motion asking the court to modify child support payments. This could be due to changes in income, the birth of a new child, or other factors that affect the financial situation of either spouse. The specific rules for modifying child support vary by state, so it is important to review your local state's rules.

While remarriage itself does not directly impact child support payments, it can lead to changes in financial circumstances that may warrant a modification of the child support order. If you have questions about how remarriage will affect your child support payments, it is best to consult with a family law attorney who can provide guidance specific to your case.

Child support and joint custody

Child support is a payment from the higher-income parent to the lower-income parent that covers the basic living necessities of the child. These payments are intended to ensure that children have access to the same standard of living they would if their parents were together. Child support laws vary across states, but generally, both parents are financially responsible for their children.

Joint Custody and Child Support

In cases of joint custody, it is a common misconception that child support payments are no longer necessary. However, shared parenting arrangements that include joint physical custody do not negate child support obligations between parents. When physical custody is shared, both parents provide for the child's basic needs, such as food, clothing, and shelter, independently. This may lead some co-parents to believe that child support laws do not apply to them. However, this is not the case, and one parent will typically be required to pay child support to the other parent, even in cases of joint physical custody.

Factors Affecting Child Support in Joint Custody

Several factors can affect child support obligations in joint custody arrangements:

• Income of both parents: Child support is typically paid by the higher-income parent to the lower-income parent. The amount of child support is usually calculated based on the income of both parents and the number of children.
• Parenting time: The amount of time each parent spends with the child can also impact child support obligations. The parent with whom the child spends most of their time is considered the custodial parent, while the other is the non-custodial parent.
• Basic necessities: Child support covers the costs of basic necessities for the child, including food, clothing, shelter, and utilities.
• Health insurance and medical expenses: Both parents are typically responsible for ensuring their children have health insurance coverage. Uninsured or extraordinary medical expenses may also be shared between parents.
• Educational expenses: Child support may also cover educational fees, such as school tuition, supplies, and extracurricular activities.
• Transportation and travel: Child support can be adjusted to include transportation costs, such as gas fees, car payments, and insurance.
• Childcare expenses: If both parents work and require childcare services, these expenses can be included in child support calculations.

Consulting a Legal Professional

Family law is complex, and child support laws can vary across states. It is essential to consult a legal professional or a trusted law firm in your area to understand your specific child support obligations and rights. An experienced family law attorney can guide you through the legal process and advocate for your rights and interests.

Frequently asked questions