Wisconsin residents may be interested in a study which shows the cost of raising a child as being higher than ever. This may have implications in a divorce settlement where the amount of child support is an issue.
A study from the U.S. Department of Agriculture concludes that it takes an average of $241,080 to raise a child until adulthood. If the child goes to college, the study says that the number is almost double. While the actual amount varies depending on a number of factors, such as geography, income and size of the family, the average is still up from previous years. The new average for a child born in 2012 is the highest in the study’s history, 2.6 percent higher than the number from 2011 and 23 percent higher than the cost in the study’s first year in 1960.
Seven different categories are measured and ranked by the study. Across the board, housing was the largest proportion of expenses, averaging about 30 percent of the amount for one child. The actual numbers change depending on income levels, as well. For example, a family that has an income of less than $60,640 is likely to spend around $173,490 on their child until adulthood. A family making more than $105,000, however, averages more than double what the lower-income family spends.
Calculating child support payments in a contested divorce is extremely important, as these monthly payments are used by the custodial parent for everyday expenses and often help when that spouse has a lower income. An attorney who is familiar with child support and custody issues may be able to help ensure that the proper amount of child support is provided in the support agreement.
Source: LA Times, “Price tag for raising a baby until adulthood: $241,080”, Shan Li, August 29, 2013
Another Wisconsin man barred from having children
Wisconsin judges have a variety of means at their disposal for child support enforcement. They may order garnishment of a delinquent parent’s wages or income tax refunds, place liens on property or deny occupational and sporting licenses or even order jail time. Increasingly, Wisconsin judges have been resorting to an enforcement measure many view as extreme – they are ordering delinquent parents to refrain from having more children.
A Racine County judge made national headlines in December when he ordered that a man could not have any more children until he showed he could support them. In that case, the man owed around $90,000 in delinquent payments for nine existing children. Then, as we reported in a prior blog post in January, a Washburn County judge imposed similar conditions on another man who had been convicted of failure to pay child support. Now, a Sawyer County judge has adopted the same approach.
In the most recent case, a Hayward man who owes approximately $5,000 in back support for his three children was convicted on two felony counts of failure to pay support. In sentencing him to two years’ probation, the judge ordered that he refrain from procreating until he pays up. In an additional twist similar to the other case, the judge also ordered that the man disclose within three minutes after meeting any woman that he is a felon and owes back child support.
These cases demonstrate the serious consequences of falling behind on child support payments. If non-custodial parents find they cannot make court-ordered monthly payments, it is important for them to seek help. An experienced child support attorney can review a parent’s financial situation to determine if a child support modification would be appropriate.
Source: Duluth News Tribune, “State view: No-procreation order is just one solution to enforce child support,” Bruce Vielmetti, Jan. 23, 2013
Powerball winnings will go to unpaid child support
To the dismay of many Wisconsin residents, there was only one lucky person holding all of the winning numbers when the Powerball jackpot reached a near-record $338 million in March. That man will not be the only beneficiary of the $211 million lump sum payout, however. Also benefitting will be the children to whom he owes $29,000 in past-due child support payments dating back to 2009. According to law enforcement officials, a warrant has been issued in connection with the unpaid support, and the amounts owed will be withheld from man’s Powerball winnings.
While very few people will win the lottery, state child support agencies have numerous tools at their disposal to collect child support. In Wisconsin, most support obligations – about 75 percent – are collected by withholding the amounts owed from the parent’s paycheck. This is accomplished by providing notice to the parent’s employer. Unemployment, workers’ compensation, pension and social security disability benefits also are subject to withholding for child support.
If a parent owes back child support, the amounts owed may be withheld from lottery winnings of at least $1,000 as in the case of the recent Powerball winner. Tax refunds and bank accounts also are subject to seizure to satisfy past-due child support obligations. The obligation to pay back child support does not end when the child reaches age 18; enforcement may continue for another 20 years if the obligation remains unsatisfied.
Because the consequences can be severe if a parent does not meet his or her child support obligations, it is advisable to seek professional help before one gets behind on the monthly payments. Child support modification may be possible if there has been a change in circumstances, such as the loss of a job. A qualified family law attorney could advise as to whether modification may be possible in a particular case.
Source: Yahoo! News, “Powerball jackpot winner owes $29,000 in child support – sheriff,” Dave Warner, March 28, 2013
Wealthy socialite accused of child support fraud
Milwaukee residents may be interested to learn of a high-profile case involving a billionaire Wall Street financier and a well-known socialite. The couple has a five-year-old daughter. The mother is accused of conspiring with her boyfriend, a partial owner of the Tampa Bay Rays and a former executive at Goldman Sachs, to conceal her income in order to fraudulently obtain child support payments of approximately $50,000 per month from her former partner.
The suit was filed in a U.S. federal district court. Court documents allege that she fraudulently obtained the support payments to “improve upon her already extraordinary life of luxury, privilege and modest fame.” The 43-year-old mother is wealthy in her own right as the daughter of the former chairman of HSBC. She travels the world as an athlete and mountain climber.
The mother is accused of conspiring with her current partner to fraudulently classify millions of dollars in gifts as loans in order to avoid having those amounts considered in a child support determination. Classifying the cash payments as loans also allows the man to avoid paying IRS gift taxes on the money. Neither the mother nor her partner responded to several requests that they comment on the situation.
When a parent lies about income in order to affect the amount of child support paid or received, that may be considered fraud. A family law attorney may be able to help the other parent bring an action to have fraudulent child support awards set aside and to ensure the appropriate amount of support is paid. An attorney may also be able to negotiate a settlement to allow the parties to avoid going back to court.
Source: CNBC, “Millionares Clash Over Socialite’s Child Support Claims,” Peter Lattman, April 26, 2013
How income affects Milwaukee child support
Child support payments are designed to ensure that a custodial parent in Milwaukee has the funds necessary to pay for a child’s needs and care. However, there is a growing concern that the support system in America is inherently flawed. The concern is that people have children with wealthy partners not because they want children but because there is a financial incentive to do so. It is claimed that the child support system as it currently exists actually punishes the less powerful and wealthy partner in most cases.
In some cases, the non-custodial parent winds up paying more than they can afford. If payments are not made in a timely manner, then they continue to accrue with no way to reset or reduce them. There are also cases where the custodial parent is accused of using the funds for his or her own benefit rather than for the children. The lack of oversight on how child support payments are spent is frustrating for many people, but the courts argue that it would be nearly impossible to carefully monitor every penny paid in child support.
In Wisconsin, the custodial parent is referred to as having ‘physical placement” of the child. The courts may determine what the placement will be if the parents cannot reach an agreement., and the child support payments will be based partially on the physical placement of the children in question. Support levels are based on a percentage of the non-custodial parent’s income. There are also special cases where the percentages may be altered. This includes situations where parents have very high or low incomes, there is more than one family being supported, the parents have shared custody, or there are multiple children and placement of them is split.
The support agreement is binding in court, but it is not written in stone. Parents can request modifications if there are changes in their circumstances. They can ask for different custody arrangements, request an increase in child support or have the levels decreased if they are laid off. It’s important to understand all of the child support enforcement laws, what happens if the payments are delinquent and how modifications can be requested. An experienced divorce attorney may be able to help parents navigate the process and receive the appropriate child support levels.
Source: The Root, “Child-Support Laws: A Boon for Gold Diggers?”, Keli Goff, May 22, 2013
Study shows that raising a child is more expensive than ever
Wisconsin residents may be interested in a study which shows the cost of raising a child as being higher than ever. This may have implications in a divorce settlement where the amount of child support is an issue.
A study from the U.S. Department of Agriculture concludes that it takes an average of $241,080 to raise a child until adulthood. If the child goes to college, the study says that the number is almost double. While the actual amount varies depending on a number of factors, such as geography, income and size of the family, the average is still up from previous years. The new average for a child born in 2012 is the highest in the study’s history, 2.6 percent higher than the number from 2011 and 23 percent higher than the cost in the study’s first year in 1960.
Seven different categories are measured and ranked by the study. Across the board, housing was the largest proportion of expenses, averaging about 30 percent of the amount for one child. The actual numbers change depending on income levels, as well. For example, a family that has an income of less than $60,640 is likely to spend around $173,490 on their child until adulthood. A family making more than $105,000, however, averages more than double what the lower-income family spends.
Calculating child support payments in a contested divorce is extremely important, as these monthly payments are used by the custodial parent for everyday expenses and often help when that spouse has a lower income. An attorney who is familiar with child support and custody issues may be able to help ensure that the proper amount of child support is provided in the support agreement.
Source: LA Times, “Price tag for raising a baby until adulthood: $241,080”, Shan Li, August 29, 2013
‘Two and a Half Men” star involved in child support dispute
One of the stars of ‘Two and a Half Men”, the television show that is hugely popular with audiences in Wisconsin and around the country, is currently involved in a child support battle with his ex-wife. Actor Jon Cryer’s ex-wife recently filed a petition requesting increase in child support payments from $8,000 per month to nearly $90,000 per month for their now 13-year-old son. She is also asking her ex-husband to pay for her attorney’s fees. The couple divorced in 2004 after a five-year marriage.
The petition filed by the actor’s ex-wife states that this increase in child support is necessary now that her share of custody has jumped from 4 percent to 50 percent in order to maintain a ‘continuity of lifestyle” for the son. The complaint states that the son lives a certain lifestyle when he is with his father but has to live differently when he is with his mother. The increase in child support payments that she is requesting will enable her to provide the teenage boy with the amenities and privileges that his wealthy private school classmates currently enjoy.
The mother feels that her request is justifiable considering the fact that Mr. Cryer currently makes $2 million a month from his show while she has been unemployed for some time. In her petition the mother indicated that the boy was only able to “compete on a level playing field” with his peers while he was living with his father, and because of the disparity in their respective resources he was unable to do so while with his mother.
Neither parent has commented publicly on the case. A celebrity divorce attorney who is not connected with the case stated his belief that the mother’s claims were without legal validity.
Source: ABC News, “Jon Cryer’s ex wants nearly $90k per month in child support”, Luchina Fisher, October 29, 2013
Miscalculation of child support payments lands father in jail
A recent case in Texas may be instructive in pointing out to non-custodial parents in Wisconsin who are responsible for child support payments how strictly states are enforcing these obligations. A Texas father has been sentenced to six months in jail for being late with payments even though the late payments were caused by a clerical error by his employer. After receiving a bill for $3,000 in overdue payments, the father quickly paid it plus an additional $1,000 in order to stay ahead. However, a judge still sentenced him to six months in jail.
The payment shortage was the result of a clerical error that caused the father’s automated child support payments to be less than what they should have been. When the father discovered the error, he immediately worked to correct the imbalance by making the payments. The father’s attorney said she thought the matter would quickly be settled. However, the opposing attorney wanted to be paid $3,500 for her fees and said she was confident the judge would side with her.
Texas law stipulates that when a parent gets behind in child support payments, it can result in jail time even though they show up and bring their payments current. The father in this case received the maximum sentence of 6 months jail time. He says he was shocked when the verdict was pronounced, adding that it was an injustice and made no sense.
The father was not able to appeal the decision and is now serving out his sentence. The court was bound to follow the provisions of the Texas statute, even though it will likely mean that the father will likely be unable to meet his obligations while he is incarcerated.
Source: The Huffington Post, “Clerical Error In Child Support Payments Leads To Six-Month Jail Sentence For Clifford Hall “, January 21, 2014
Diva’s father granted reduction in child support
Wisconsin parents who pay child support may be ordered to pay more when they take home a significant amount of income. However, parents may seek a reduction in the child support award if their income is reduced. Such was the case for one famous woman’s father who recently had the amount of the child support that he had to pay modified after seeing a significant drop in his income.
Mathew Knowles, father of the legendary diva Beyonce Knowles, sought a reduction in his child support payments after his income was drastically reduced. A hearing commenced earlier this year. Since the majority of his income came from managing his daughter’s career, Knowles was not able to pay the court-ordered amount after being fired in 2011.
The child support was ordered after an actress named Knowles in a paternity case. Knowles was still married at the time that he fathered the child. Beyonce’s mother filed for divorce about one month after her husband was named in the paternity case in 2009. The couple was together for about 30 years when the divorce action was finalized. The father had been paying $12,000 a month in child support while working for his superstar daughter. The judge agreed with Knowles’ argument that he has since had a much lower income and ordered him to pay about $2,500 a month. The order is retroactive to February 2013. However, Knowles was required to pay the actress’s legal fees of about $15,000.
Individuals who are paying child support may decide to file for a modification if their income changes. Through such a course of action, they may be able to get the support amount reduced to match their income level.
Source: The Huffington Post, “Beyonce’s Father, Mathew Knowles, Granted Cut In Child Support”, March 05, 2014
Social media results in charges for parents owing child support
Milwaukee County is making use of social media websites in an effort to deal with parents who neglect their child support payments. In some cases, the child support payment amounts provided have been minimal, but the parents who owed support made posts to their Facebook pages or other social media accounts that indicated the financial means to meet their obligations.
In at least one case, a father faces felony charges because of his post in which he bragged about his take-home pay. He has paid a total of $189 in child support during his 3-year-old child’s life, an average of 14 cents per day. The youngster is suffering from leukemia, which has resulted in extensive medical tests, treatments and stays in the hospital. According to an assistant district attorney for the county, social sites have provided an important tool in dealing with such non-support issues. In a separate case, a parent posted images in which wads of cash were displayed. The parent had only made one support payment ever, a total of $100. Another incident involved a man who made a significant purchase when support was due.
One may imagine that such posts are simply careless actions that the individuals failed to consider. However, officials indicate that there may be a sense that these details don’t matter and that they may not be monitored. As attention to such sites is considered during divorce and custody settlements, there may be more leverage available for lawyers representing custodial parents.
Access issues may be sensitive if an ex-spouse uses privacy protections to keep posts from displaying to those who might use such information in a legal setting. This makes it wise to consult an attorney about the possibility of investigating social media postings on an individual’s account.
Source: Opposing Views, “Fathers Face Charges For Avoiding Child Support, Bragging About Money On Facebook “, Sarah Fruchtnicht, July 17, 2014
Child support and the gender of the custodial parent
According to information released by the Census Bureau for 2011, mothers in Wisconsin and across the nation are statistically more likely to fail to pay court-ordered child support than fathers are. The data suggests that 25.1 percent of custodial mothers with child support agreements did not receive any of the child support to which they were entitled, as opposed to 32 percent of custodial fathers.
Nationally, $14.3 billion went unpaid in child support in 2011. Researchers have posited a hypothesis that because the average income of a woman-run household is about half that of a man’s, women who are struggling to maintain a base standard of living may be less likely to be able to make child support payments.
An additional factor is that many custodial fathers reject child support provisions in the divorce decree for a number of reasons. While a court generally orders the non-custodial parent to pay child support, it is believed that custodial fathers are not as likely to utilize government resources to help collect past due obligations as custodial mothers are. On average, when the father does not collect child support, the household income is over $9,000 higher annually, while custodial mothers’ household income drops by almost $4,200 per year.
When representing a parent who is going through a divorce, an attorney might examine the financial status of both spouses to help determine how likely the client is to receive all or part of the child support ordered by the court. The attorney can assist in incorporating a provision regarding this matter into a comprehensive settlement agreement to submit to the court for its approval.
Source: fivethirtyeight.com, “Are Moms Less Likely Than Dads To Pay Child Support?”, Mona Chalabi, Feb. 26, 2015