The Federal Child Support Act of 1984 established the parameters for determining the amount of child support that should be paid. These parameters include the cost of the child’s needs, the custodial parent’s income, and the non-custodial parent’s income and expenses. In short, the court estimates the total cost of raising the child and measures it against each parent’s financial resources. An important side note is that these calculations are based on the child’s standard of living prior to the divorce.
The difference in obligation between the custodial and non-custodial parents is primarily monetary. By accepting physical custody of the child, the custodial parent is given an arbitrary credit for the services they provide to the child. This includes a percentage credit of their rental or mortgage costs, food, clothing, and education. The value of these services are converted into a monetary value by the court, and the non-custodial parent is then ordered to pay a regular cash payment based on their ruled obligation percentage. This payment amount must be paid through the court system and it cannot be substituted with other forms of participation.
Physical custody is not always awarded to the parent with the highest annual income. Because custody hearings take in account a multitude of determining factors, it is not uncommon for the primary bread winner to be denied physical custody. In this case the non-custodial parent can find themselves paying substantially more in child support than the custodial parent pays in providing for the child. This is usually the result of a judge determining that the custodial parent provides a better environment for the child’s development, even though that parent may not have as deep of financial resources.
Custody and child support rulings influence each other directly. Together they are intended to give the child a consistent standard of living that offers the maximum opportunity to succeed in life. The court sets a total cost for raising the child and then divides this liability between the two parents based on their resources. This can result in significantly different parental obligations depending on the situation.