Repeal of Maximum Family Grant Rule and Its Effect on Child Support

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsOne of the most inhumane laws that loomed over the State of California was the Maximum Family Grant rule (MFG). According to this law, if anyone in the family is under the scheme of cash aid for 10 months in a row, a child born into the same family will be excluded from the Assistance Unit (A.U) bracket and is not eligible for child support. The MFG rule was added to CalWORKs program in August 1997 and is applicable for those children born after the same date.

The MFG law- a racist, sexist and discriminatory law 

From the time the MFG law was enforced, it discriminated against poor young woman against demanding basic aid for child support. This rule penalized mother’s enrolled in the state offered cash welfare program if they were to give birth. Monetary assistance included only those children born before the time the law came into practice or if the children were born prior to the mother receiving cash aid from the state. MFG was adopted as a measure of reformation and is largely viewed as enforcement of restricting the size of the family- mostly a curb on colored women.

Repeal of Maximum Family Grant rule and its effect on child support

The latest state budget included the repealing of the MFG rule with full support from Governor Jerry Brown. The motion to repeal the law was passed few months earlier. The dissolution of this law comes as a relief for over 90,000 families who were dealt with an iron hand by this biased law. The excluded families will now benefit from additional $138 for each child that was previously left out.

The repeal will increase the state’s budget by $220 million, annually. With the repeal, California joins 22 other states including Minnesota, Maryland, and Wyoming. Currently, there are only a dozen other states that refrain from supporting the family when an extra child is born if the family is enrolled in a cash aim program. The remaining two states follow an inflexible system wherein a certain amount is paid regardless of the number of children.

The enforcement of the MFG law was directed towards children born out of wedlock. The children also include those conceived from incest, rape and birth control fails forcing the woman to share unconformable personal details with the case worker.  Since there was no evidence to prove that MFG was successful in controlling the growth of population, its repeal comes as a restoration of faith in humanity.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Understanding The California Child Support Laws

Posted by: Gerald A. Maggio, Esq.

Top Orange County divorce mediators; California divorce mediatorsSection 4053 of the California Family Code lays down the intent and purpose of laws related to child support. These laws have evolved over the years to suit the needs of the time. Section 4053 of the Family Code has enabled fast resolving of child support cases and has also determined the calculation of support payments.

Scope of the law

The child support laws have been framed keeping in mind the best interests of the child involved in a child support case. The basic intentions of the child support laws are as follows –

  • It wants to remind the court and the parents that it is an obligation required by the law for the parents to support their child.
  • The most important role of the child support laws is to ensure that conflicts between the parents are minimized and litigations are reduced so that the child does not have to unnecessarily suffer because of his or her parents’ egos and differences of opinion.
  • A child should have the same standard of living as the parents.
  • The ability of the parents to support the child is taken into consideration. Both the parents are equally obligated to care for their child. Their income and time should be devoted reasonably to be look after the child.
  • The custodial parent’s standard of living can be improved by receiving child support which is also meant to improve the standard of living of the child.
  • It is wrong to presume that the parent who is the sole custodian of the child already has used enough of his or her resources to support the child. That is to say, the parent paying child support has the right to request the court to modify support payments.
  • Child support orders in California are generous because the city is quite expensive to live in.

California child support cases sometimes get delayed for a number of reasons. Parents sometimes withhold valuable information about their income hoping they will either receive more or have to pay less child support. Sometimes parents don’t show any interest in their child.

To learn more about child support and the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

The Correlation Between Child Support and Parenting Time

Posted by: Gerald A. Maggio, Esq.

Divorce mediators in Orange County; California Divorce MediatorsAs per child support laws in California, a direct correlation exists between visitation or parenting time and child support. Many lawyers consider it as a kind of double edged sword. A parent who enjoys more time with the child will have a more compelling requirement of child support. This is good in theory. In practicality, connecting child support and parenting time means giving parents with dubious motives the use of parenting time and custody as a kind of leverage in the child support scheme.

Termination of child support

There will be a termination of child support when that child becomes 18 years of age. There can be exceptions to this rule. This rule cannot be applied if the 18 year old continues to study in high school and lives with his or her parent. For this kind of situation, support of the child will terminate with him or her turning 19 years of age or the person being a high school graduate- whichever comes first. The laws in California also state that support of the child will also be terminated in case the child gets married or joins the military or is emancipated. Child support will also end if the recipient dies. Parents, however, may agree on continuing to provide child support even beyond that age if both of them agrees to do so. 

Guideline child support

In California, a computer program informs the judge what the child support will be. It must be mentioned that the correct information must be inputted into the program. The Family Court has no compulsion to follow the child support guideline of California. There must be a proper reason, however, to deviate from it. It is not permissible for the California Courts to simply fail when it comes to order the amount of child support as stated by the guideline for reasons not applicable by law. The reason for this is that the child support number as stated by the guideline is presumed to be correct. This presumption of being correct could be rebutted both up and down. It is required by the court to have the needed admissible evidence which shows that the formula for guideline will be inappropriate or unjust in that case. It is to be kept in mind that the person who wants the California court to deviate from guideline formula must be the one to plea the court that it is needed.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

How to Calculate and Modify Your Child Support

Posted by: Gerald A. Maggio, Esq.

Top Orange County divorce mediators; California divorce mediatorsChild support is one the major factors which can be held responsible for directly influencing the quality of your child’s upbringing and well being. The financial aid obtained from either parent in lieu of child support can contribute towards the schooling, healthcare and other general needs and requirements of the child. However, the basis for evaluating the financial status of each parent and calculating the child support to be paid each month is different for the different states.

How do they calculate the child support in California?

The state laws of California require the judge to calculate the child support on the basis of the individual income of each of the parents, and also the time which each of the parent spends with the child. In addition to this, there are several other factors such as the house mortgage, tax slabs and child care expenditures, which the court of law needs to take into consideration while calculating the child support in several divorce cases. Owing to the complicated nature of evaluating a wide of range of factors for determining the support payments, most of the California courts and judges take the assistance of a software program referred to as Dissomaster. The inputs to this program are to be provided by the separating partners and the software then calculates the monthly installments to be paid as support for the child.

When can you modify your support payments?

The law requires the child support to be carried on for as long as the child stays a minor and does not reach the age of 18. However, if during this time you think that you are receiving too little or paying too much support, you can request the California court for a modifications. There can be certain situations wherein you can appeal for a modification in the amount of child support you receive or pay.

  • You have more than one new child in addition to the existing ones.
  • You lose a job, or your income lowers.
  • Your custodial percentage is increased by the court of law
  • The original calculation of support was erroneous.

Despite the fact that you will probably be granted a change in your child support, the modification will not be taken into consideration from any date in the past. This implies that the alterations will not be retroactive, and will be taken into effect only from the day the change has been made.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Special Issues of Income in Child Support

Posted by: Gerald A. Maggio, Esq.

Divorce mediators in Orange County; California Divorce MediatorsThe income of both parents determines the amount of child support to be paid. Both parents will try and show lesser income than they actually earn so that the parent seeking child support can get more and the parent paying it has to pay less as support. Certain very tricky situations with regards to income come up that the California family court has to settle.

The court generally considers the annual gross income of both the parents before deciding on the final amount of child support. Bonuses, overtime and commissions also get calculated in this annual gross income. Some of the special issues that the court has to deal with include the following:

When the bonuses, overtime and commissions do not continue as before –

Such claims are very common. The spouse claiming that their income does not remain the same will have to prove to the court, with detailed documents and evidences from the employer, that this is indeed true. If the proofs and evidences are satisfactory to the court, the court will not include such additional earnings as part of the annual gross income.

When such additional earnings are irregular –

The court determines the average of the spouse’s income. The court considers the additional incomes of more than one or two years and calculates the average. So even if the earning is irregular it does not really matter.

When the support paying parent refuses to work overtime –

If a spouse refuses to work overtime it may be acceptable by the court but again the spouse will have to provide with sufficient and acceptable reason for that. A simple ‘I do not want to’ will not be accepted by the court. But the court recognizes the fact that it becomes difficult for separated parents to work overtime when they have to think about visiting or parenting time and the custodial parent taking care of the child full time.

When either parent gets a new spouse –

The parent with the new spouse will not want the new spouse’s income to be considered to determine any changes to the support payment. The custodial parent would want more in support amount because now the remarried parent has more income when that income is combined with the income of the new spouse.

Cases of child support can get very complicated. So you should enlist the help of a professional and experienced lawyer in California.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Retroactive Child Support in California

Posted by: Gerald A. Maggio, Esq.

Top Orange County divorce mediators; California divorce mediatorsThe child support that has to be paid for the period before the actual order for payment of child support was obtained is called retroactive child support in California. It just means that the child support paying parent will have to make the payments from an earlier date. Retroactive child support is not similar to unpaid or late payments of child support.

An example will make it easier to understand retroactive child support. Suppose you filed a divorce petition on July 1 and requested for a child support order on August 1. The date set for the hearing of your case is September 10. On the day of the hearing, the court decides to make the initial child support order a retroactive one. The court may make the order retroactive from July 1 or August 1. A paternity action or divorce proceeding commonly starts once a petition for temporary child support is filed.

Generally speaking, the California family court makes the temporary child support order a retroactive child support order. But if the initial petition for divorce notice was not served within 90 days of its filing, the court will make the child support retroactive from the day the petition was served. So, if the parent supposed to be paying the support did not avoid doing so intentionally, the payment of child support becomes effective from the date of serving the notice.

Retroactive child support is paid on four grounds –

  • The custodial parent and the child are in need of support and would benefit from payments of retroactive child support.
  • The non-custodial parent intentionally delayed the payment of child support by delaying the hearing of the case.
  • The non-custodial parent had deliberately avoided paying child support by withholding crucial information on assets and finances.
  • The court will also take into account other factors such as income of the parents, among other things, to determine if the support order should indeed be made retroactive.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Things to Know About California Child Support Laws

Posted by: Gerald A. Maggio, Esq.

Orange county divorce mediation; California Divorce MediatorsSection 4053 of the California Family Code lays down the intent and purpose of laws related to child support. These laws have evolved over the years to suit the needs of the time. Section 4053 of the Family Code has enabled fast resolving of child support cases and has also determined the calculation of support payments.

Scope of the law

The child support laws have been framed keeping in mind the best interests of the child involved in a child support case. The basic intentions of the child support laws are as follows –

  • It wants to remind the court and the parents that it is an obligation required by the law for the parents to support their child.
  • The most important role of the child support laws is to ensure that conflicts between the parents are minimized and litigations are reduced so that the child does not have to unnecessarily suffer because of his or her parents’ egos and differences of opinion.
  • A child should have the same standard of living as the parents.
  • The ability of the parents to support the child is taken into consideration. Both the parents are equally obligated to care for their child. Their income and time should be devoted reasonably to be look after the child.
  • The custodial parent’s standard of living can be improved by receiving child support which is also meant to improve the standard of living of the child.
  • It is wrong to presume that the parent who is the sole custodian of the child already has used enough of his or her resources to support the child. That is to say, the parent paying child support has the right to request the court to modify support payments.
  • Child support orders in California are generous because the city is quite expensive to live in.

California child support cases sometimes get delayed for a number of reasons. Parents sometimes withhold valuable information about their income hoping they will either receive more or have to pay less child support. Sometimes parents don’t show any interest in their child.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Understanding Child Support & Taxation Issues

Posted by: Gerald A. Maggio, Esq.

Divorce mediators in Orange County; California Divorce MediatorsAs per the federal law, the child support contribution is stated as tax- free for deductions under the income tax guidelines. The aforementioned law implies that both the recipient parent and the child are exempted from any taxes on the funds they receive as child support. On the other hand, the federal law states that spousal support payments are tax-deductible for the individual making the payments, and the amount is also taxable to the one who is receiving the funds. However, the child support funds do not fall under the tax deductible category for the one who makes the payment.

What counts as child support?

The separation or divorce agreement needs to have a clear cut distinction between, what is being paid and received as alimony, and what is to be considered as child support. Many a times, the divorce agreement does not display a clear demarcation between the alimony and child support , and clubs both the categories together as family support payments. Such a situation is detrimental to the parent receiving the child support payments, as the alimony or family support is considered as a taxable income for the recipient. In these cases, the custodial parent might actually end up paying taxes on the child support income, irrespective of what the funds are actually being used for. 

Which of the parent can claim the child as a dependant?

As per the law, a parent contributing to at least 50 % of his child’s support, during a fiscal year, is qualified to claim the child’s dependency on his taxes. It is quite an effective tax saving technique, employed by married couples who are living together. However, when the parents separate or take a divorce, things get more complicated. Post a divorce or a separation, only one of the two parents can benefit from tax exemption arising out of a child’s dependence on him. The Internal Revenue Service practices stringent laws when it comes to both the parents illegally claiming the child’s dependence on their taxes. 

Child dependency in the case of unmarried parents

In case the parents have been living together for more than six months, and have not been married yet, the dependency of the child can be claimed by the parent who provides more than half of the child support during a tax year. However, if neither of the parents is able to provide more than 50 % of the child support, the matters end up getting further complicated.

In such cases, it is always advisable to obtain legal consultation from a professional attorney who is better equipped to deal with the case as per your specific situation.  To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

How Life Insurance Can be A Guarantee In Your Divorce Settlement

Posted by: Gerald A. Maggio, Esq.

orange county divorce mediators; California Divorce MediatorsIf you are going through a contentious divorce process, then be sure to build in all the safeties you can to secure your hard-won settlement. Here’s how life insurance could hold the key to some of your concerns around the divorce settlement and your financial future.

Why you need a fail-safe guarantee

For someone who is a dependent spouse, relying on the alimony payment from a now-estranged spouse can be a nerve racking experience. This is made even more daunting when old age creeps up on you, or if your ex has a host of health problems or lives on the edge. Even without all these risks, the loss of your estranged ex will mean that your alimony payments stop completely with no one to make them. Often, after a divorce, couples will revise their wills to exclude the ex from inheriting their estate – whether it is property or other assets. There is however, one way to ensure you don’t find yourself in a spot when a spouse passes on.

Life insurance and how it can help

If you do not earn an income, and are totally dependent on the money that comes in as alimony, you may find yourself with no money in the bank when your ex dies. Life insurance can help give you a payout on their passing which will see you through.

Term insurance vs. whole life policy

A term policy covers the life of the insured individual – your ex – for a fixed duration of years. If your divorce settlement agreement dictates that payments will be made as child support until the kids are of a certain age, then it makes sense to have a term policy that runs for that duration only so you pay lower premiums. A whole life policy also has an investment component with some returns on the premium paid besides the death benefit.

Who pays?

Many couples have life insurance policies when they are married, but after divorce the earning spouse may choose to stop making these payments. If they were the holder of the policy, they could even change the beneficiary. It is therefore important, as a dependent to be the holder of the policy and to ensure payments are made. You could work out so that premium payments are made by your spouse even if you are the holder, but in many cases the earning partner may not agree, especially if they are to make alimony payments. In such cases, it is well worth cutting the premium out of your own alimony received to keep up a policy or to take out a new life insurance policy on them. Think of it as an investment in your own future and financial security.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.

Develop Your Child Custody and Support Agreements through Mediation

Posted by: Gerald A. Maggio, Esq.

orange county divorce mediation; California Divorce MediatorsDo you want to get your child custody and support agreements made? Are you looking for an attorney to litigate it for you? Before you do that though, consider getting the services of a divorce mediator. A large number of parents who tend to go to litigation are left wanting and disappointed at the child custody and support orders that courts give. The best way to avoid this feeling of ‘what if’ or ‘it could have been better than this’ is for the parents to erase the court out of the picture and do it themselves.

How? Divorce mediation services and mediators can help you through the mediation process to develop your child custody and support orders.

The Money Game

Courts are likely to focus their approach to try and split the child custody and child support costs. The formulas for this are likely to be the ones that are mandated. There is little or no chance of deviation from those principles that have already been agreed upon. Yet in divorce mediation, the mediator will facilitate the parents but ultimately leave the final decision of the costs and the finances splitting on them.

Child custody, on the other hand, is likely to be a trickier subject, since the custody of one’s child is what both the parents desire and it is likely to have a host of emotions attached to it. However, divorce mediators are skilled professionals who are likely to be able to address the emotional side of things and yet allow the parents to reach a mutually agreed upon child custody arrangement where both the parents get what they want more or less.

Another advantage of this method is the fact that when parents mutually agree upon support payments and child custody arrangements, they are likely to honor it more willingly than they would do to a court order that is imposed on them which they aren’t particularly content with.

Adversarial is not a Word to Describe Mediation

The key to mediation is going into it prepared and knowing what you want out of the process. Having said that, however, it must be noted that mediation is a process where you are required to make concessions and so flexibility in your plans is a must. The one thing that should be the top priority in a mediation agreement being developed is the best interest of their child. Children should come first in any agreement being made with their rights and future being guaranteed first and foremost.

Look to the Future

The process of Orange County mediation is all about looking towards the future. Mediation is a process not only helps you develop a better future for your child, it makes sure your emotional trauma side is kept as far away as possible.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”