There are two main types of child support guidelines, percentage of the obligor’s income and the income shares model. Percentage of the obligor’s income model is based simply upon taking a set percentage of the obligor’s income as their child support obligation. Some states do the calculation based on gross income and others on net income.
NJ Child Support, how to calculate:
Child support calculations in New Jersey are based on the income shares model. The foundation of this model is that the child should receive the same proportion of the parent’s income as he or she would receive if his or her parents still lived together. Therefore, the model takes into account the income of both parents, as well as costs for medical insurance and childcare. A basic calculation under this model consists of four steps:
- The income of both parents is calculated and combined.
- A basic support obligation based on the combined income is taken from a chart in the Child Support Guidelines.
- The basic support obligation is divided between the parents according to the percentage of income they contribute to the combined income.
- Credits are added for payment of healthcare insurance, childcare expenses and other factors as the Court determines appropriate.