If I Have a High Income, Is There Any Cap on Child Support in California?

All states differ, but if you have a high income in California, there is legally no cap on the amount of child support you may be ordered to pay. Instead, this amount is based on the total income you and your spouse earn, the amount the greater-earning parent earns, and the custody time you and your spouse have agreed on.

The California Family Court has a general Child Support Calculator that can give you a fundamental idea of the child support you may have to pay.

As stated, there is no cap on this amount, and in high-income households, it can be complex to calculate and differ drastically from the usual “normal” guidelines.

If you and your spouse can’t agree on an amount, the judge makes the final decision. Many factors may influence the judge’s decision in a high-come divorce, but if you consider it unfair, you can petition to modify the amount. However, you must have valid, sound, rational, and provable reasons.

Remember that in a high-income divorce, your lawyer’s experience, negotiating skills, and commitment to your case will be invaluable to the court’s decision on your child support payment.

How Does California Qualify a Household as “High Income?”

In California law, there is no definitive definition of what constitutes a “high-income earner” in divorce or child support. However, many judges will consider your income in relation to the community at large and the relative wealth of the cities and counties you live in when making a “high-income” determination.

For example, one parent’s income may be high enough to be considered “extraordinarily high” by any objective standard. However, a $1.5 million annual income may be regarded as “high” in Bakersfield but simply “average” in Los Angeles. High-net-worth divorce cases have many challenges, not only child support payments but also complex property divisions, significant alimony, and much more.

So, the guidelines are often modified when dealing with these types of divorces, and the court may make more subjective decisions.

Therefore, when dealing with all the complex matters that a “high-income” divorce creates, it’s critical to have a skilled, well-versed, knowledgeable, and passionate divorce lawyer fighting for your rights and finances.

So, In Most Cases, How Do the California Courts Decide On Child Support in a “High-Income” Home?

In “high-income” households, the California court may become directly involved in making child support orders and other related matters. If asked to do so, the court commonly will order “guideline” child support payments according to the California Family Code.

By following these “guidelines,” the court will consider, at the least, the following factors:

  • The number of children in your family, their ages, etc.
  • The custody agreement or court-ordered parenting time agreed upon between you and your spouse.
  • The total income of each party (W-2 earnings or self-employment income) and income from investments, rental property, businesses, royalties, partnership agreements, trust income, and more.
  • A list of deductions you and your spouse take on your tax returns, such as health insurance, a mortgage-interest deduction, property tax deductions, etc.

A computer program compiles all the collected information and calculates the child support amount to be paid.

Usually, the factors considered are straightforward (i.e., a base salary, as reflected on an earning statement, is reasonably clear). Still, these calculations may lead to complex and heavily litigated issues in a high-income divorce.

Let’s say one spouse earns a substantial base salary from their business but also receives significant bonuses or commission income. In this case, the extra income will typically be accounted for in a child support order with a “Smith-Ostler bonus table” calculation. So, the “high-income” spouse may owe additional child support based on a percentage of the extra income earned; this can become even more legally complex.

In many “high-income” divorces, the income may be high enough that the court must deviate from the “guidelines” in the child support order. If one spouse’s income is substantial enough, the court may find that the standard “guideline” calculations exceed the child’s realistic needs. This is a scenario where your experienced and thorough child support lawyer may insist that the court deviate downward from the guidelines and in your (as the high-income spouse) favor.

The California courts will always consider the marital standard of living of both spouses and their children when making this decision. However, your passionate and determined “high-income” divorce lawyer will always fight for your rights and a sensible solution for your children.

As a High Earner, How Do I Know My Child Support Payment is Fair?

As stated, California has standard guidelines for calculating child support in a divorce case under state law. In most cases, the guidelines formula is accurate and current. However, in exceptional cases (where the paying parent is a high earner), the family and the California courts may deviate from these guidelines to find a more reasonable child support amount.

So, when determining the child support payment in a high-income household, the data and arguments of the high-income spouses’ lawyers often play a significant part in reaching a reasonable settlement.

Suppose you are a spouse seeking more child support (due to your high-income household) from the co-parent. In that case, your Orange County child support lawyer will be crucial in helping you present proper evidence showing that standard guidelines are inappropriate or unjust in your particular case.

Conversely, if you are a high-earning parent, your law team would present significant facts showing that even though you are a high-earner, the child support you should pay should be determined reasonably.

Your Orange County child support lawyer will present your case using key factors such as your child’s actual needs, the co-parent’s current income, other children who may be dependent on your income, and numerous other factors that support your unique case.

The critical point to remember is that determining child support in complex cases, such as high-income families, is often subjective, and customary legal guidelines just won’t typically fit the situation. So, your Irvine or Orange County child support lawyer’s skill, compassion, knowledge, and experience will prove invaluable to settling this issue fairly and reasonably.

I’m Going Through a High-Income Divorce; How Should I Proceed?

In determining child support payments or other critical matters in a high-income divorce, you must have professional legal representation from an experienced and resourceful California child support lawyer. This is the only effective means to ensure that child support calculations accurately reflect not only your child’s needs but the overall financial capacity of the high-income spouse or parents; the “usual” calculations used by the state just won’t fit this unique situation.

The Law Office of Patrick O’Kennedy is a highly experienced child support lawyer with an in-depth knowledge of California child support and divorce statutes. In a high-income divorce, your divorce law team must have the expertise, empathy, and commitment critical to these unique cases.

Call 714-701-6356 for a complete case evaluation and obtain peace of mind knowing your rights will be protected and you’re in the capable hands of a true professional.