How are Health Insurance, Day Care Expenses and Private School Expenses Calculated with regard to a Child Support Obligation?
Each party will be responsible for a certain percentage of additional costs incurred to raise a minor child. These additional expenses are calculated and allocated between the parties in addition to the basic child support obligation. Examples of additional expenses that will be allocated between the parties are child care, private school, or health insurance. The percentage of the costs for which each party will be held responsible is determined by comparing the parties’ relative incomes. The party who earns more will pay a higher percentage of these costs. The party who earns less will pay a lower percentage of these obligations. These additional expenses will be added to or deducted from the basic support obligation depending on which party is paying the out-of-pocket expenses. As an example, if the daycare expenses for the child are $1,000 per month and the Father earns 60% of the parties’ combined income, then the Father will be responsible for $600 per month in day care expenses. If the Mother has primary physical custody of the child and Father is paying the daycare expense in full, then he will have a $400 deduction from his child support obligation to Mother, representing the Mother’s 40% obligation toward this expense. If Mother is paying the daycare expense, then the support obligation that she should receive will be increased by $600, representing Father’s 60% share of the day care obligation.
Similar to the day care expenses, health insurance premiums for the child are allocated between the parents. If one parent is paying for a “family plan,” then the total cost of the monthly premium will be divided by the number of individuals covered under the insurance plan. Once the per person cost is determined, then that cost is multiplied by the number of children who are covered by the child support order. That health insurance cost is then allocated between the parents based on their percentage of the combined income such that the parent who earns more, pays a greater percentage of the health insurance premium. The cost is either added to or deducted from the basic child support obligation depending on which party pays for the out-of-pocket insurance premium.
Unreimbursed Medical Expenses
Unreimbursed medical expenses are those medical expenses that are incurred on behalf of the child in addition to the health insurance premiums. These expenses may include co-pays, deductibles, and expenses incurred for reasonably necessary medical procedures and supplies, including but not limited to routine medical care, surgery, dentistry, optical services, orthodontia, therapy and prescriptions. Expenses that are purely optional will not always be included in the allocation. The first $250 in unreimbursed medical expenses per child, per calendar year will be paid by the custodial parent. After the first $250 per child, per calendar year has been paid by the custodial parent, the remaining expenses for that calendar year will be shared by the parties based on the percentage of their respective income.
The attorneys at Tanner Law Offices are experienced in calculating child support obligations with complicated circumstances. We look forward to working with you to determine the correct child support obligation. Please contact our office at 717-731-8114 to schedule a consultation to discuss the specifics of your case.