Child Support Guideline Cap Raised
May 9th, 2008One of the most far-reaching revisions to the Texas Family Code in decades was the increase in the child support guideline cap that went into effect in the Fall of 2007.
The statute is Texas Family Code Section 154.125.
This was the first time since 1995 that the amount of the cap had been raised. The increase will only impact cases were the payor makes over $100,000 per year, but my guess is that literally tens of thousands of divorce and paternity orders per year in Texas fall into this category and will now yield a higher child support amount.
Under the old guidelines a Court was limited to considering the first $6,000/ month of payor “net resources” (a statutorily defined term that is usually close to the payor’s after-tax pay). The amendment raised this cap amount to $7,500/ month.
The end result is that a court setting child support under the guidelines in a case where the payor has an annual gross income of $125,000 and one child will be setting the child support at $1,500/month. Under the old law this would have been $1,200/month.
It should be noted that the amendment did not automatically effect previous orders and applied only to cases filed on or after September 1st.
Anyone receiving child support under an existing order who was subject to the old cap may have the right to a child support increase based on this statutory change by filing a modification case. Given the large number of existing child support orders that were set based on the old cap, there are probably a huge number of cases in the state where there are very good grounds for a modification.
June 9th, 2008 at 2:36 pm
is this first $7500/ month cap based on the net salary after all taxes, insurances, deductions from your paycheck? for example if your gross monthly pay is $9200 (annual $110400/year) but after all taxes and deductions end up with only $6100/ month take home money. Will still the cap be the same 20% or $7500/month
June 9th, 2008 at 3:11 pm
Henry, the statute calls for the court to calculate the payor’s monthly “net resources” which is basically your gross pay minus certain specific deductions –
(1) social security taxes;
(2) federal income tax based on the tax rate for a single person claiming one personal exemption and the standard deduction;
(3) state income tax;
(4) union dues; and
(5) expenses for health insurance coverage for the obligor’s child.
Notice that the statute does not allow you to calculate it based on your actual deductions (ie, 401k, total health insurance, actual withholding tax amount, etc.) but only using the specific listed deductions. There is actually a chart that family law attorneys typically use to calculate the amount.
March 12th, 2009 at 8:34 am
I am presently receiving the cap of 1200.00 a month. Would it be worth going back to court for the new cap.
March 12th, 2009 at 9:02 am
Gloria, it might be depending on the particular facts of your situation, especially your ex’s current income level. If you believe he makes $125k or more per year than I would recommend you consult with a good family law attorney about a possible modification. That would mean that he should be paying $1500/month (if only one child). That is $3600 per year in additional child support, so depending on how long it will be until your child reaches majority that is probably worth looking into. There are a lot of details and variables involved so my best advice is to consult with an experienced family law lawyer about your case. Good luck!
July 9th, 2009 at 11:39 am
My ex makes close to 200,000 a year we live in Midland Texas. Why am I only getting 1500 a month for 2 children??? Do quarterly bonuses count???They are regular and are about half of his income.
July 12th, 2009 at 11:23 am
Jackie, any kind of income is included under the statute, specifically including bonus and commission income. It sounds like your child support was set using the old guideline maximum and I would recommend that you talk to a Midland family law attorney about a potential modification case to raise it to the current guideline maximum for two kids ($1875). Good luck!