Who Pays for a Child’s Extracurricular Activities After a High Asset Divorce?

 Posted on April 14,2020 in Child Support

When parents in Austin decide to file for divorce and they have minor children together, the divorce process often gets more complicated. These complications tend to be even more amplified in high net worth divorces in Texas where the children attend expensive private schools and participate in high-priced extracurricular activities. For example, in and around Austin, many parents pay for their children to participate in a variety of sports, and kids may participate on travel sports teams that require additional expenses. Other kinds of extracurricular activities and hobbies can also be extremely expensive, from classical music lessons to equestrian sports.

Texas child support laws are streamlined based on a noncustodial parent’s average monthly net income, and they do not take into account the costly extracurricular activities and sports that are common for kids in high asset families, nor does Texas law allow a court to add onto a child support obligation for private school expenses. We will tell you more about how child support laws do work in Texas, and we will say more about how parents ultimately can ensure that their kids can remain in their current school and extracurricular activities despite the divorce.

Texas Courts Calculate Child Support Based on Income and Number of Children

Regardless of the income or assets of either parent in a Texas high net worth divorce case, the court will use the formula for calculating child support set by Texas law. Under the Texas Family Code, the following is the calculation that the court will use to determine the noncustodial parent’s child support obligation:

• With one child from the marriage, the noncustodial parent will pay 20 percent of the average monthly net income
• With two children from the marriage, the noncustodial parent will pay 25 percent of the average monthly net income
• With three children from the marriage, the noncustodial parent will pay 30 percent of the average monthly net income
• With four children from the marriage, the noncustodial parent will pay 35 percent of the average monthly net income
• With five children from the marriage, the noncustodial parent will pay 40 percent of the average monthly net income
• With six or more children, the noncustodial parent will pay at least 40 percent of the average monthly net income

For instance, if a couple in Texas gets divorced and has two children from the marriage, the parent who is obligated to pay child support may have an average monthly net income of $8,000. Under the formula, that parent would pay 25 percent of $8,000, or $2,000 per month. When courts order child support, they are not taking into account private school costs or extracurricular expenses.

Parents Can Reach an Agreement About Additional Costs for Children

In Texas, if the parents want to come to an agreement about continuing to provide for the child’s private school costs and extracurricular activities after the divorce, they can certainly do so. Depending upon how the noncustodial parent makes payments, that parent also may be able to pay more each month and specifically earmark the additional amount for private school tuition or extracurricular activities.

However, as the Texas Family Code explains, if a parent sends an excess amount to a child support agency or registry and that amount does not come with an “expressed intent,” it will typically be credited to the future child support obligation.

Contact a Texas High Asset Divorce Attorney

If you have questions about child support in a high net worth divorce, an experienced Austin high asset divorce attorney can assist you. If you have concerns about custody, an Austin complex child custody attorney at our firm can also help. For any additional questions, a complex litigation attorney can speak with you about your case. Contact Powers Kerr & Rashidi, PLLC online or call us at 512-610-6199.

Source:

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