How Does Income Affect Child Support Calculations?
April 16, 2025
Child support is a critical aspect of family law; it's designed to make sure that children receive adequate financial support from both parents, even after separation or divorce.
In Arkansas, child support obligations are primarily determined based on the income of the noncustodial parent, following the state’s guidelines.
The amount a parent must pay depends on various factors, including earnings, additional income sources, and specific deductions. Understanding how income influences child support obligations is essential for both parents. The courts consider not just wages but also bonuses, self-employment income, and other financial resources when determining payment amounts.
Additionally, changes in income can lead to modifications in child support orders, making it important for parents to stay informed about how fluctuations in their financial situation might impact their obligations.
By examining the specific guidelines and factors that affect child support in Arkansas, parents can better go about the legal process and make sure that their child's financial needs are met. As an experienced child support attorney at James B. Bennett Law Office, I’ll explain how income affects child support calculations based on laws in El Dorado, Arkansas.
Arkansas Child Support Guidelines
Arkansas follows the Income Shares Model for calculating child support. This model aims to reflect the amount parents would typically spend on their child if they were living together. The total child support obligation is divided between both parents based on their individual incomes.
The Arkansas Supreme Court revised the child support guidelines in 2020, shifting from the Percentage of Obligor’s Income Model to the current Income Shares Mode, according to the Arkansas Judiciary. This change provides a more balanced approach, considering the income of both parents rather than solely relying on the noncustodial parent’s earnings.
What Counts as Income for Child Support Calculations?
When determining child support, Arkansas courts consider gross income from all sources. Gross income includes, but isn’t limited to the following sources of income:
Wages and salaries from employment
Self-employment income (after deducting necessary business expenses)
Bonuses, commissions, and overtime pay
Social Security benefits (excluding Supplemental Security Income)
Unemployment benefits
Workers' compensation benefits
Pensions and retirement income
Dividends and interest from investments
Rental property income
Alimony received from a previous marriage
Any other sources of recurring income
If a parent is voluntarily unemployed or underemployed, the court may impute income based on their earning potential. This means that the court will estimate what the parent should be earning based on their skills, education, and work history.
Calculating Child Support Payments
Furthermore, the Arkansas child support formula involves several steps. These steps are made to allow for the most accurate calculation with the best interest of the child or children involved. They’re as follows:
Determine the gross income of both parents: Each parent's income is assessed, including all applicable sources of earnings.
Adjust for allowable deductions: Certain deductions are subtracted from gross income to arrive at net income. These may include:
Federal and state taxes
Mandatory retirement contributions
Union dues
Support payments for other children
Combine the parents’ net incomes: The total net income of both parents is added together.
Refer to the Arkansas child support chart: Arkansas has a child support chart that outlines the appropriate amount based on combined parental income and the number of children.
Assign responsibility proportionally: Each parent’s percentage of total income determines their portion of the child support obligation. The noncustodial parent typically pays their share to the custodial parent.
For example, let’s assume both parents have a combined monthly net income of $6,000, with the father earning $4,000 (67%) and the mother earning $2,000 (33%). If the Arkansas chart sets the total support obligation at $1,200 for one child, the father would be responsible for 67% of that amount, equaling $804 per month.
Now, consider a case where both parents have joint physical custody, and the child spends roughly equal time with both. In this situation, the court may apply a parenting time adjustment.
Assume that:
The father earns $5,000 per month, while the mother earns $3,000.
The combined net income is $8,000.
The Arkansas support chart indicates a total child support obligation of $1,500 for two children.
The father's share is 62.5% ($5,000 ÷ $8,000), while the mother’s is 37.5%.
Under normal circumstances, the father would owe $937.50 per month (62.5% of $1,500). However, because they share custody equally, the court may reduce his obligation based on the number of overnight stays.
If the father has the children half the time, his support amount may be adjusted downward, potentially cutting it by 50% or more, depending on the specific circumstances.
These practical examples outline how child support payments are typically calculated in the state of Arkansas.
Additional Factors That Affect Child Support
Several factors can influence child support calculations, leading to adjustments in the final amount. These factors could include:
Parenting Time Adjustments
If the noncustodial parent has substantial overnight visitation (shared or joint custody), the court may reduce their child support obligation. Arkansas courts consider the number of overnight stays per year in determining adjustments.
Other Children from Different Relationships
If a parent has existing child support obligations for children from a previous relationship, the court may adjust the amount accordingly.
Extraordinary Medical Expenses
Medical costs not covered by insurance, such as treatments for chronic illnesses or special needs care, can be factored into child support calculations.
Educational Expenses
If a child has private school tuition or special educational needs, courts may adjust child support payments accordingly.
Health Insurance and Childcare Costs
The parent providing health insurance or childcare expenses may receive a credit to offset these costs in child support calculations.
Deviation from Guidelines
Arkansas courts can deviate from the standard child support guidelines when special circumstances justify an increase or decrease in the amount. Such deviations must be clearly documented and in the child’s best interest.
Modifying Child Support Based on Income Changes
Moreover, child support orders aren’t permanent and can be modified if there’s a substantial change in circumstances. Income fluctuations are one of the most common reasons for modification requests. Examples of income changes that may warrant a review include:
A significant increase or decrease in salary
Loss of employment
A new, higher-paying job
Disability or serious illness affecting earning capacity
Retirement
Either parent can petition the court for a modification if their financial situation changes significantly. The court will review the updated income and adjust the child support obligation if necessary.
Consequences of Non-Payment
Failing to pay child support in Arkansas can result in serious legal consequences. The Office of Child Support Enforcement (OCSE) has various enforcement mechanisms, which include:
Wage garnishment (automatic deduction from paychecks)
Interception of tax refunds
Suspension of driver’s licenses and professional licenses
Seizure of bank accounts
Contempt of court proceedings, which may result in fines or jail time
It’s crucial for parents to communicate with the court if they experience financial difficulties, as ignoring child support obligations can lead to severe penalties.
Speak to a Child Custody Lawyer Today
Income plays a fundamental role in child support calculations in Arkansas. The courts assess both parents’ earnings, apply necessary deductions, and determine the appropriate amount using state guidelines.
Understanding Arkansas child support laws helps parents anticipate their financial responsibilities and advocate for fair support arrangements that meet their child’s needs. I serve El Dorado, Arkansas, and all of Southern Arkansas. Contact James B. Bennet Law Office today.