CHILD SUPPORT & ALIMONY

How will child support and alimony work? It’s our commitment to help you figure all of that out. 

Financial support, whether temporary or final, is a huge concern to our clients, regardless of who is paying or receiving the support. We’ll address child support and alimony separately to keep it easy to review and reference.

Child Support

Child support calculations are largely based on a set of predetermined state Child Support Guidelines, which are overseen by the Department of Human Services (DHS). For clarity, the court will assign a Primary Resident Parent and an Alternative Residential Parent, and who receives support will be dependent upon the current incomes of each parent and how many parenting days each parent has.

In reference to child support, the payments will be paid by the Alternative Resident Parent to the Primary Resident Parent for the support and care of their children. Even if your agreement is very even, there will be a Primary and Alternative Resident Parent. It is most often the case that child support must be paid in Tennessee, but in special cases, a judge makes that determination, but it’s quite rare.

Child support will be calculated off of the parents’ Gross Income (GI), which includes: 

  • Wages

  • Salaries

  • Tips

  • Commissions

  • Income from self-employment

  • Fees

  • Bonuses

  • Fringe benefits

  • Severance

  • Pension and retirement plans

  • Interest income 

  • Dividend income

  • Trust income

  • Annuities

  • Capital gains

  • Disability or retirement benefits from the social security administration

  • Worker’s compensation (temporary or permanent)

  • Unemployment insurance benefits

  • Judgements for personal injury or other civil action awards

  • Gifts of cash or liquid assets

  • Prizes of significant value

  • Lottery winnings

  • Maintenance or alimony from other relationships

Once that is tallied, the Adjusted Gross Income (AGI) will be considered. This is the compiled total from above less:

  • Self-employment tax

  • A child’s care in the parent’s home

  • A child being supported under a separate support case

  • A child not living in the parent’s home, being supported by another parent outside of a court agreement.

(All of the above will require documented proof.)

Once the above has been tallied, revealing each parent's Adjusted Gross Income, and deducting the credits, the final calculation is performed. The Basic Child Support Obligation is the AGI, minus the credits, allocated across the number of days each parent has parental time, that gives the total obligation. This will lead to the Percentage of Income (PI) that must be paid by each parent.

The amount paid by each parent is completely dependent upon the income, parenting days, medical expenses both covered and not covered by insurance, childcare and any other supportive means a child needs.

The ruling for how to calculate child support is the same in Tennessee whether the parents are married or not. Unwed couples may also go through this process for child support.The same rules and calculations set forth by DHS apply.

In some instances, a parent may try to hide income, take a pay cut or refuse to report income to avoid payment. There are several measures that can be enacted to compel the truth about income to be revealed. In addition to these measures, a Judge will take actions like that into consideration during trial. It’s a bad idea all around, and if a spouse tries it, our attorneys can work with you to remediate ploys like this.

For high-income parents ​​in Tennessee, a cap applies to the maximum amount when the presumptive child support order exceeds the amount found by multiplying a net income of $10,000.00 by the percentages set out above.

The amounts that are viewed as a capped are laid out below in the guidelines:

  • One child (21%) = $2,100.00.

  • Two children (32%) = $3,200.00.

  • Three children (41%) = $4,100.00.

  • Four children (46%) = $4,600.00.

  • Five or more children (50%) = $5,000.00.

The Primary Residential Parent may seek support in excess of the above amount and must prove that more than the above amount is reasonably needed to provide for the child. The court may order that the additional child support be paid into an educational trust for the child’s benefit. This trust would be used for education, extracurricular activities, and educational travel. 

All of the above is calculated in a complex Child Support Worksheet and Guidelines document that is best executed with skilled and experienced counsel. The matter of child support should be sorted as soon as a complaint is filed to start the divorce process. It doesn’t require a trial if both parties can come to an agreement of support. Upon agreement, the court can approve the plan agreed upon between the parents. This is the better way to handle the agreements, for the following reasons – lower costs, increased control, and minimal emotional stress. The parties can control the details, and the parents are less likely to be upset about the results.

Child support can become a point of contention and control in divorce.   Our goal is to remove that option and create an agreement that you can live with and supports the best interest of you and your child.

ALIMONY

Alimony, on the other hand, is not subject to such a specific calculation process, at least not in Mississippi or Tennessee, our primary locations of practice.  Alimony awards require extensive financial and factual analysis on the part of counsel. 

Our clients know that we have examined all the angles, reviewed and analyzed all the available information, and helped them understand the basis for our requests or offers related to financial support, whether it is child support or alimony.

Our team makes sure our clients have an early strategy that remains steadfast, yet flexible to optimize results regarding financial support issues.

Whether considering the payment of support or hoping to receive maintenance, there are some conditions to study in crafting your agreement:

  • Length of maintenance

  • Termination of maintenance payments upon remarriage

  • Will maintenance be time constrained, or based on completion of a milestone, like schooling or gainful employment.

Whatever your goals are, we will create a strategy to successfully represent your wishes and protect your rights through negotiation, mediation, or in court. Our attorneys handle your matters with integrity and aim for equity, while keeping your interests our top priority.

If you need help with spousal maintenance or alimony matters, our team can investigate your circumstances and advise you of your options. In Tennessee, according to statute Tenn. Code Ann. § 36-5-121. There are four types of alimony that can be awarded for the economically disadvantaged spouse. These include Alimony in solido, Alimony in Futuro (also called Periodic Alimony), Rehabilitative Alimony, and Transitional Alimony and these payments may be paid from the obligor’s earnings or income, but it may also be paid from the spouse’s property. 

Alimony in solido is a lump sum amount or installments. These payments are considered a solid and permanent solution to the divorce. The payments can only be adjusted by parties of the agreement, and cannot be terminated by death or remarriage of either party. The amount and length of maintenance is based on relative earning capacity, obligations, needs, and financial resources of each party, including income from pension, profit sharing or retirement plans and all other sources.

The following will also be considered:

  • Education and training of each party

  • Ability to secure education and training of each party to increase earning potential.

  • Length of marriage

  • Age and mental condition of each spouse

  • Physical condition of each party including physical, mental or chronic disease

  • Custodial responsibility of a minor child

  • Separate of each party

  • Value of marital property

  • Standard of living during the marriage

  • Tangible and intangible contributions to the marriage monetarily or by homemaker contributions

  • Relative fault of the parties

  • Tax consequences to each party

There are additional factors that will be considered, but these are the main considerations in most marriages. Extenuating and unique circumstances are our wheelhouse. Whether your situation is easily settled or requires more work, our attorneys are ready to work through it with you.

Alimony in futuro is a settlement in which the receiving party is compensated to keep them either in the standard of living they enjoyed in their marriage, or the lifestyle they would be enjoying because of investments or accomplishments coming to fruition. This type of alimony is typically elected in cases where it was a long term marriage and may require a lifestyle analysis and assistance from a forensic accountant. This analysis of spending habits against declared income can often uncover hidden sources of income. It typically uncovers things like, 

  • Stock options

  • Grant stock

  • Profit sharing

  • Perks or non-standard benefits from an employer

  • Cash from tips or commissions

  • Bonuses

  • Use of company vehicles or vacation properties

Once agreed upon, the spouses may execute their agreement without the judgement of a trial. Most commonly, these agreements are dissolved after a set time frame or upon the death or remarriage of one of the spouses. Once settled, it will take significant documentation to adjust this type of support agreement.

Rehabilitative alimony is an option that provides an opportunity for the disadvantaged spouse to receive support while working to gain additional education or skills to increase earning potential. This is a common resolution for shorter term marriages. This arrangement is set forth so that the spouse may reach the same level or better standard of living enjoyed during the marriage.

The assistance would be used to help cover college tuition costs, vocational training, apprenticeship, continuing education, professional licensing,so that the supported spouse can vastly improve his or her earning potential. This type of alimony typically ends when the training or coursework should be completed. This would be terminated upon the death of either spouse and is not typically modified. It is also excluded from being paired with our next type of alimony, Transitional Alimony. 

Transitional alimony is designated for the spouse that already has training and the capacity to earn an income that would achieve a commensurate standard of living, but needs a few months or years to adjust to single parenting or economic self-sufficiency. This type of support is terminated upon the death of either spouse, and can be supplemented with a life insurance policy if needed. 

The election of which type of alimony is appropriate for your situation is not work we take lightly. Our team works very intimately with our clients to go through each option and how it affects their futures, whether they are receiving or paying alimony.

Again, we appreciate the opportunity to be incredibly thorough in the investigation of the specifics of your divorce. We’ll explore and convey the best outcomes for your situations, and work diligently alongside our clients to achieve that resolution.