High-Income Child Support in Pennsylvania

Child support calculations tend to be more complex when it comes to high-income divorces. While Pennsylvania employs support guidelines throughout the state, the court will have to assess whether the calculated amount correctly accounts for the reasonable needs of the children. In this article, the Philadelphia, PA, family law attorneys at the Law Offices of Lauren H. Kane will discuss a landmark case involving child support and high-income divorces.

Background of the case

The aforementioned case was an instance where the parties were litigating child support matters after their divorce. The husband made an unusually high income, which was estimated at more than $2 million annually, while the wife made significantly less. According to Pennsylvania’s support guidelines, the father owed a very high amount of child support due to his income level.

The two parties previously agreed that they would annually exchange tax returns and calculate their support obligations according to their income levels and the child support guidelines of Pennsylvania. However, disagreements arose when the husband contended that the support obligations produced by the guidelines were much higher than what the children reasonably needed.

The husband also maintained that the support obligations should be calculated taking into account his voluntary contributions towards a trust set up for the benefit of the children. Some of the father’s arguments were rejected by the trial court; however, the court also reduced the support obligation requested by the wife.

The appeal

On appeal, the Pennsylvania Supreme Court discussed whether trial courts, in high-income support cases, are required to independently determine the reasonable needs of the children when applying the guidelines.

The Supreme Court rejected the superior court’s finding that the application of the guidelines is sufficient in determining reasonable needs in high-income cases. The court noted that the formula used in computing support in high-income divorces does not take into account the same economic data as applied to normal incomes. As such, trial courts should conduct further assessment of the children’s reasonable needs before deciding whether or not a deviation from the guideline amount is proper.

Moreover, the Supreme Court decided that a parent’s voluntary contribution to an irrevocable trust cannot be deducted from his child support obligations. The court stated that voluntary trust contributions cannot be substituted for the parent’s obligation to pay child support.

Lastly, the Supreme Court denied the mother’s claim for recovery of attorney’s fees.

Key takeaways

This case is considered a landmark decision on child support concerning parents with high incomes. In this case, it was held that the court is allowed to consider the actual needs of the children in addition to the computation based on the guidelines when necessary.

This case further emphasizes that any voluntary payment of money, for example, through trusts, does not lower a parent’s statutory duty to pay child support.

Talk to a Philadelphia, PA, Divorce Lawyer Today

The Law Offices of Lauren H. Kane represent the interests of Philadelphia residents during their divorce. Call our Philadelphia family lawyers today to schedule an appointment, and we can begin advocating on your behalf right away.

Source:

law.justia.com/cases/pennsylvania/supreme-court/2018/19-map-2017.html