Reviewed by Laurie L. Newmark, ESQ.
Key Takeaways
- Formula: Based on combined net parental income under Rule 5:6A.
- Custody Threshold: 104+ overnights/year (28%) requires the Shared Parenting Worksheet.
- High Income: Combined net income over $187,200 triggers additional discretionary support under N.J.S.A. 2A:34-23(a).
Can a Custody Agreement Affect Child Support?
There are two main factors that can affect the outcome of child support. This may be the percentage of time the supporting parent spends with their child and whether they have shared or sole custody. If the supporting parent has shared custody of their child, it means they spend at least 28% of overnight time per year with them. If the other co-parent has sole custody, it means the supporting parent spends less than 28% of overnight time with their child.
Calculating Child Support
Every family is different from one another, which is why each child support case is treated as such. In the state of New Jersey, there is no predetermined amount that a parent may be required to pay in child support. Instead, it is calculated by the New Jersey Child Support Guidelines. With this system, the court can determine a fair amount to be paid in child support based upon the family’s financial situation and what they can provide for their child. The formula in place applies to families with a combined yearly net income between $8,840 and $187,200. This income is then calculated with the cost of living for the child to determine an amount that can provide the child with a stable upbringing.
Legal Framework and Statutory Deductions in NJ Child Support
In accordance with New Jersey Court Rule 5:6A and Appendix IX, the court will determine child support calculations by determining the gross income of each parent before implementing mandatory and statutory deductions to determine their available income. The courts will then adjust the figures to consider deductions for mandatory expenses, past support obligations, and healthcare expenses to determine a precise child support obligation.
Income Inclusions, Imputation, and Mandatory Deductions
In New Jersey, the family courts will consider all sources of earned and unearned income for both parents to ensure the child support amount is fair in accordance with the Income Shares Model. As such, if a parent is voluntarily unemployed or underemployed with no valid cause, the court will determine their potential earning capacity based on the unemployed parent’s work history and qualifications.
- Comprehensive Gross Income Sources:
- Wages
- Salaries
- Overtime pay
- Bonuses
- Commissions
- Lottery winnings
- Unemployment benefits
- Exempt Income Categories: Certain types of income are strictly exempt from gross income calculations due to their nature, including:
- Public assistance programs
- Supplemental Security Income (SSI)
- Welfare payments
- Imputed Earning Capacity: If a parent is voluntarily underemployed or unemployed while physically capable of earning and working, the court will impute income based on their past earning history
- Mandatory Tax and Payroll Deductions: Gross income will be reduced by federal and state taxes, any mandatory union dues, and mandatory retirement income contributions.
- Adjustments for Other Dependents (ODD): If the paying parent has other dependents, deductions or credits will be applied for all existing support orders or other obligations for biological or adopted children.
Direct Expense Adjustments and Worksheets
The New Jersey Child Support Guidelines will incorporate certain child-related expenses into the basic obligation payment that represents the actual spending across both households. As such, the court will utilize worksheets like the Sole Parenting Worksheet (Appendix IX-C) or Shared Parenting Worksheet (IX-D), depending on each parent’s share of overnight parenting time.
- Parenting Time Overnights (28% Threshold): Parents who have at least 104 overnights per year (approximately 28% of the time) will need to complete the Shared Parenting Worksheet
- Work-Related Childcare Expenses: Parents who incur necessary employment-related child care expenses will have those added to their basic support obligations (Appendix IX-E)
- Health Insurance Premium Credits: The parent who pays for the children’s health insurance premiums will receive credit for the incremental costs of both medical and dental coverage for the child
- High-Income Off-Guidelines Allocations: For parents who have a combined net income that exceeds $187,200, the courts will apply statutory factors in accordance with N.J.S.A. 2A:34-23(a) to award additional support.
- Rebuttable Presumption and Deviations: Guidelines carry a rebuttable presumption (Appendix IX-A), which can be overcome for college expenses, special needs, or equal 50/50 custody arrangements.
Factors to Consider
While most families are situated within the standard guidelines provided by the state, not every family falls under the same scope. This may be for a variety of reasons: if the house supports more than six children, either parent has unreimbursed medical expenses, the child has educational expenses, or the child has special needs. It is important to know that in these situations, the court considers several different factors for families outside of the guidelines to determine child support. This can include the following:
- The financial status of each parent
- Who has physical custody of the child
- Any income, debt, and assets of each parent
- Each parent’s earning capacity
- Each parent’s work history
- The child’s needs
- The child’s age/health
- The child’s education
- The cost of providing for the child
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