Child Support for High-Income Parents in Texas

 Posted on April 19,2023 in Child Support

If you have children, child support becomes a core part of divorce in Texas and the wellbeing of your children is a major priority for the courts. However, child support can become a bit more complex in a high-asset divorce.

Parents going through a divorce in Texas are subject to statutory mathematical formulas to determine their child support obligations. In this blog, we will discuss Texas child support guidelines, some unique challenges, and practical steps that high-income parents can take to ensure a fair and reasonable child support agreement.

Texas Child Support Guidelines

There are specific guidelines for calculating child support payments in Texas. These payments are based on the net monthly income of the non-custodial parent. The non-custodial parent pays a percentage of their net monthly income, based on the number of children they are supporting.

This percentage can range from 20% for one child to 40% for five or more children. The guidelines consider factors such as the cost of healthcare, daycare, and education, so that these basic necessities can be met for each child.

Key Challenges for High-Income Parents

The guidelines can be slightly more demanding of high-income parents than of parents with modest incomes.

Wealthy parents often have complex income structures, including bonuses, stock options, offshore investments, and other forms of compensation that are tough to identify, calculate, and consider as part of their net monthly income.

These multiple sources of income can make it difficult to calculate child support payments accurately. Moreover, high-income parents may face pressure to minimize child support payments to preserve their wealth.

This can lead to bitter legal battles and prolonged court proceedings, which can be emotionally and financially draining for all parties involved. It is important that you consult an experienced child support lawyer for help addressing the challenges and complexities of your individual case.

Financial Transparency is Crucial

High-income parents going through a high-asset divorce can take several practical steps to ensure a fair and reasonable child support agreement. Firstly, they must seek appropriate legal counsel. Secondly, high-income parents must remain transparent about their income and assets for two main reasons. One is to ensure that child support payments are calculated accurately, and the other is to ensure that they face no further legal issues later on.

If you are getting divorced and your spouse has a very high income, make sure you are vigilant for signs of financial deception during the divorce process. Some spouses underreport income or hide assets to lower their child support obligations unfairly. 

Contact a Child Support Lawyer in Austin, TX Today

Child support is an essential and core aspect of divorce proceedings, and high-income parents going through a high-asset divorce in Texas must consider the unique challenges involved. Our Austin child support attorneys can provide dependable legal advice and fierce representation during your divorce or child support dispute. Contact Powers Kerr & Rashidi, PLLC at 512-610-6199 for a confidential consultation. 

Source: 

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.154.htm