Fill and Sign the Effective February 1 2019 the Family Court Revised the Delaware Child Support Formula as Stated within Family Court

Form 509I Rev 2/19 1 The Family Court of the State of Delaware INSTRUCTIONS FOR CHILD SUPPORT CALCULATION (2019) Effective February 1, 2019, the Family Court revised the Delaware Child Support Formula as stated within Family Court Civil Rules 500 through 510. The revised formula applies to both prospective and retroactive calculations. All monetary allowances will be adjusted in February of every year in accordance with any changes in the United States Department of Health and Human Services (HHS) poverty guidelines. The entire formula will be reviewed again in 2022. These instructions are intended to assist in determining child support obligations but are not a substitute for the Rules or any applicable law. The Delaware Child Support Formula is a rebuttable presumption for establishing child support obligations in Delaware. The Formula applies unless the Cour t finds the results are contrary to the best interest of the child or inequitable to the parties. Every child support order, including consent orders negotiated outside of Court, must have one or more support calculations attached even if the parties agree to another amount. An automated version of the Child Support calculation is available online at http://courts.delaware.gov/family/ . REASONABLE EARNING CAPACITY A Child Support Financial Disclosure Repor t must be submitted with supporting documentation at mediation and before trial. Documentation includes a parent’s most recent tax returns, W -2 forms, and 3 most recent pay stubs but may also include Social Security, unemployment compensation, workers’ com pensation, medical disability, child ca re and medical insurance. Self -employed individuals and persons employed through a closely held corporation should be prepared with recent tax returns with all schedules, 1099 forms, documentation of significant expe nses categories, and recent bank statements. Child support is calculated upon each parent’s reasonable earning capacity . W age surve ys published by the Delaware Department of Labor can be used to assess whether earnings are appropriate or determine reasonable earning capacity ( http://www.delawareworks.com ). A parent employed at least 35 hours per week at a job appropriate to their training and experience, and earning greater than the “entry” level wage for their profession as reported by the Delaware Department of Labor is presumed to have reached reasonable earning capacity. A parent in an appropriate job but working fewer than 35 hours per week must be imputed at least 35 hours per week. If income is undocumented, if a parent is un - or underemployed either voluntarily or due to their own misconduct, or if a parent fails to appear for a hearing or mediation, then reasonable earning capacity will be “imputed” at not less than 40 hours per week , and at not less th an minimum wage ($8.75 per hour) . However, a parent who voluntarily or through misconduct has a decrease in income may be imputed their prior income. Parents who receive unemployment compensation are presumed to have lost employment by no fault of their own. A parent who loses employment involuntarily and through no fault of their own will be imputed the greater of one- half of their prior income, any unemployment compensation received, or minimum wage at 40 hours per week. Parents who don’t receive unemployment compensation are presumed to have left employment voluntarily or been fired for cause. Unemployment that exceeds 6 months in duration is presumed to be voluntary. Parents who suffer a loss of income voluntarily or due to misconduct may have their o bligation calculated upon actual current earnings if over a reasonable period of time they have earnestly sought to achieve maximum income capacity. Receipt of Social Security Disability (SSDI) or Supplemental Security Income (SSI) is proof of a disability which may limit ability to work. A parent receiving SSI will not be assessed an obligation unless the parent has additional income or earning capacity with which to pay support. Incarceratio n of more than 180 days is also evidence of diminished earning capacity. NET AVAILABLE INCOME Net available income is determined by taking gross income and subtracting certain deductions and a self -support allowance, and accounting for each parent’s obligation to support other children, if any. If the party seeking support is not a parent, then support is calculated using only the income of the parent in the case before the Court. All amounts must be monthly and rounded to the nearest whole number. To convert from weekly, multiply by 52 and divide by 12. For biweekly, multiply by 26 and divide by 12. Form 509I Rev 2/19 2 Line 1 --Monthly Gross Income is the combination of the following: Wages: This includes salaries, wages, commissions, bonuses and any other income (other than self-employment income) that is subject to Federal Retirement and/or Medicare taxes including pre-tax benefits. Second Job : Whether to include second job income is determined case by case. It is more likely to be included if it has been historically e arned, raises the standard of living of the parent, or is necessary to meet the minimum needs of the child. It is more likely to be excluded if it merely allows the parent to make ends meet, is used to pay extraordinary medical or educational expenses, is necessitated by the nonpayment of support, or the job substantially conflicts with visitation. Fluctuations in income or that overtime is not guaranteed is not a basis for exclusion. The Court must determine average income likely to recur. Second job income and voluntary overtime that is no longer earned will not be imputed if it has been over 2½ years since the last determination of support, and primary employment is consistent with reasonable earning capacity. Self : All income earned as an independent contractor (sometimes called “1099” income) for which self -employment taxes are actually paid. Documentation, such as a tax return with Schedule SE attached is REQUIRED. Other: All other income including but not limited to dividends, severance pay, pensi ons, interest, trust income, annuities, capital gains, workers' compensation, disability insurance benefits, prizes, and alimony or maintenance received. All income not subject to income tax including most Social Security Disability (SSD) or retirement b enefits and private pension plans. This includes any self -employment income for which unemployment taxes are not paid. Benefits paid to a child due to a parent's disability are included in that parent's income but offset the Net Monthly Obligation (Line 24) dollar for dollar. Benefits for a child's disability are income to the household in which it is received. All income from self -employment for which proof of payment of self -employment tax is not provided. All military allowances (except clothing) are included as income. However, no military service member shall be attributed a housing allowance (BAH) that exceeds BAH w/dependents at Dover AFB. 2019 Dover Air Force Base BAH with dependents (BAS is $369 for enlisted and $254 for officers) E01 $1542 E05 $1575 E09 $1998 W04 $2019 O3E $2028 O4 $2121 E02 1542 E06 1713 W01 1722 W05 2097 O1 1593 O5 2241 E03 1542 E07 1797 W02 1839 O1E 1815 O2 1710 O6 2259 E04 1542 E08 1890 W03 1953 O2E 1932 O3 1950 O7 2277 Exceptions to income: Expense reimbursements or in -kind payments received in the course of employment, self - employment, or operation of a business should be counted as income only if they are significant and reduce personal living expenses. A cost of living stipend given to an employee as compensation due to relocation to a high cost location will not be included as income as long as it is clearly identified on pay docum ents. Adoption subsidies disbursed pursuant to 42 U.S.C. § 673 or a subsequent or similar statute shall not be counted as income. Line 2 —Self Employment Tax Adjustment: If a parent provides documentation of actual payment of self -employment tax, 7% of the parent’s self -employment income will be deducted from gross income. However, the deduction is only available to the extent combined wages and self-employment income does not exceed $11,075. Line 3 -- Allowable Deductions (add the following across the line and enter the result in the appropriate column): Pension —All mandatory pension contributions are deductible. Voluntary contributions to an IRS approved retirement plan are deductible to the extent mandatory contributions do not exceed 5% of gross income. The automated calculation on the Court’s website will automatically calculate the maximum allowable amount. Union Dues: Average monthly union dues. Disability Insurance: Disability insurance premiums withheld from pay or purchased privately for purposes of income replacement (but not to cover credit card or mortgage obligations). Form 509I Rev 2/19 3 Other: Any court ordered alimony payments, or mandatory deductions (such as supplies required by an employer ). Line 4 —Medical Insurance: Any medical Insurance (including COBRA) paid for by a parent is a deduction from gross income UNLESS allocated to the children of this union. If the insurance covers the children and the parent has other children to support (“Yes” on Line 7A ), then 25% is allo cated to the children. If the policy covers the children but parent has no other children to support (“No” on Line 7A), then 50% is allocated to the children. Documentation is REQUIRED. If the cost to cover the both the parent and the children exceeds 10% of income, then it is presumed unaffordable. However, once acquired, coverage must be retained until further order of the Court or written agreement of the parties. Line 5 --Self Support Allowance: The self-support allowance is the minimum amount of incom e necessary for a parent to remain productive in a workplace. Each parent is given a self -support allowance of $ 1140 . Line 6 --Net Income after Self Support: Subtract the self-employment adjustment (if applicable), deductions, health insurance & the self-support allowance from gross income. Line 7A -- Does the parent support other dependent children? Enter “Yes” or “No”. This refers only to natural or adopted children who reside in the parent’s household, or for whom there is a court order for support or proof of a pattern of support. It also includes adult dependents for which there is a court order of support or written agreement between the parties before the Court. This does not include step children. If the person seeking support is a guardian , then indicate here whether or not the guardian has guardianship of any children other than in the pending case. Line 7B -- Adjustment for Support of Other Dependents: If Line 7A is “Yes”, enter 70%; if “No”, enter 100%. Line 8 --Net Available for Primary Support: Multiply each parent’s Net Income after Self Support (Line 6) by the Line 7B percentage. Add the figures for Father and Mother to get the total available income. Line 9 --Share of Total Net Available: Divide the Net Available for Primary Suppor t for each parent (Line 8) by the Total Net Available (Line 8 Total). Enter the results on Line 9. If the party seeking support is a not a parent, then enter 50%. Medical Expenses — Each parent is responsible for a percentage of all medical expenses not paid for by insurance in accordance with the Share of Total Net Available (Line 9). Parents should attempt to manage medical reimbursement issues privately. A petition for reimbursement should be filed no later than December 31 in the 2nd year after the expense is incurred. Later applications may be considered for good cause shown. PRIMARY SUPPORT Primary support consists of a Primary Support Allowance based upon the number of children of this union in each household, work related child care expenses, m edical insurance allocable to the children, private school expenses (under some circumstances), and other ongoing special needs of a child. Line 10--Number of Children of this Union in each Household: Enter the number of children of this union who reside in each parent's household. If a child resides equally (more than 163 overnights) in both households, assign ½ child or “.5” to each household. Do not include children from other relationships. Shared Placement: If a child resides in shared placement, the parents are expected to equally share in all incidental expenses that would otherwise be borne by a primary residential parent. Failure to do so can result in sanctions including, possibly, calculat ing support as if the child resides primarily with the other parent. Line 11--Primary Support Allowance: Enter the Primary Support Allowance that matches the number of children in Line 10 for each household (see tables below). Number of Children Primary Support Allowance Number of Children Primary Support Allowance 1 $520 .5 $365 each additional +310 each additional