The actual method and percentages for calculating the appropriate amount of child support varies from state to state, but all states will rely on a similar set of variables to come up with the amount. Both parents are typically asked to submit a financial statement to the court and the court then considers the financial picture of both parents – the needs of the custodial parent and the ability of the non-custodial parent to pay.
The court also looks at the needs of the child – age, mental and physical abilities, etc. – as well as how the children lived prior to the divorce . This is not to say that the court’s will force the paying parent to support a lifestyle that is no longer financially feasible – just that maintaining a similar lifestyle, if possible, plays a part in deciding upon the amount of support.
Child support is typically a fixed amount and payable on a monthly basis however, many courts do include a Cost of Living Adjustment (COLA) that will automatically increase the payments by a small percentage on an annual basis to allow for ordinary inflation. Most states base child support orders on a set of state-approved Child Support Guidelines.
To determine these guidelines, generally a committee has undertaken a great deal of research and consideration to establish the amount of money it costs to raise a child in that particular state with various levels of income. The variables discussed above are usually a part of the calculation with necessary additions and/or credits made to the base level of support to account for daycare costs, health care costs and other similar expenses.