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The information contained herein is provided as a public service. All critical information should be independently verified. The Hallett Law Firm, P.C. makes no representation or guarantee as to the correctness or suitability of the information provided or of any linked information. The information and/or services provided may change at any time without notice. ALABAMA CHILD SUPPORT INFORMATION Alabama Central Disbursement Division By law, all IV-D child support payments and non IV-D child support payments made through income withholding must be processed through a central payment center. See The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PL 104-193) and §30-3-195, Code of Alabama (1975). In response to the legislation, Alabama established The Alabama Child Support Payment Center (ACSPC) in August 2000. It is imperative that all obligors, employers, and custodial parents understand the route payments take from ACSPC to final disbursement to the custodial parent. ACSPC transmits all IV-D payments to the Alabama Department of Human Resources (DHR). For information regarding IV-D payments, please visit the DHR website Conversely, all non-IV-D payments are transmitted to The Alabama Central Disbursement Division (ACDD). The information in the following paragraph is provided to assist you on payments directed through ACDD. ACDD was established to handle disbursement of non-Title IV-D payments. Disbursements are made on the same day they are received from ACSPC. ACDD disburses child support payments by check, direct deposit or to a debit card. ACDD customer service representatives are available to answer questions and perform in depth research regarding payments. ACDD has implemented an interactive voice response system, available 24 hours a day, seven days a week, which gives the date and amount of the last payment processed. Additionally, the ACDD web site provides helpful information including forms and a 90 account history.
Child Support Guidelines Rule 32, Alabama Rules of Judicial Administration, Effective 10/4/93 Alabama's Child Support Guidelines were adopted in response to requirements set forth in the Child Support Enforcement Amendments of 1984 (P.L. 98-378) and the Family Support Act of 1988 (P.L. 100-485). The guidelines provide an adequate standard support for children, subject to the ability of their parents to pay, and make awards more equitable by ensuring more consistent treatment of persons in similar circumstances. These guidelines are based on the income shares model developed by the National Center for State Courts and are founded on the premise that children should continue to receive the same level of support that would have been available to them had the family unit remained intact. Child Support Guidelines Review Application of the Child Support Guidelines in Alabama is mandatory unless the court makes a written finding on the record indicating that application of the guidelines would be unjust or inappropriate. Schedule of Basic Child Support Obligations The Schedule of Basic Child Support Obligations was developed through research sponsored by the National Center for State Courts and is based on extensive economic research on the cost of supporting children at various income levels. This schedule is based on gross income and has been adjusted for Alabama's income distribution relative to the U. S. income distribution. It also incorporates the federal income tax provisions as well as the withholding schedule for Alabama state income tax. The category entitled "combined gross income" in the schedule means the combined monthly adjusted gross incomes of both parents. "Adjusted gross income" means gross income less preexisting child support obligations and less preexisting periodic alimony actually paid by a parent to a former spouse.(See the Child Support Guideline Worksheet [Form CS-42] to compute the combined adjusted gross income.) For combined gross income amounts falling between amounts shown in the schedule, the lower value shall be used if the combined gross income falls less than halfway between the amounts shown in the schedule. Where the combined gross income falls halfway or more than halfway between two amounts, the higher value shall be used. The category entitled "number of children due support" in the schedule means children for whom the parents share joint legal responsibility and for whom support is being sought. The court may use its discretion in determining child support in circumstances where combined adjusted gross income is below the lowermost levels ($550) or exceeds the uppermost levels of the schedule ($10,000). How Child Support Is Determined In AlabamaChild Support is based upon a number of factors, including: Monthly Gross Income of the Parties Work-related Child Care Expenses Health Insurance Costs for the Children Any previous child support obligations paid to other children as well as any periodic alimony paid to a former spouse are to be subtracted from the gross monthly income and will not be used to determine child support. A form called a CS-42 form is used to calculate child support. Click on the link below to see the CS-42. Rule 32, Alabama Rules of Judicial Administration, provides the following definitions and guidelines for determining income. EXAMPLES OF INCOME THAT MUST BE INCLUDED IN YOUR GROSS MONTHLY INCOME
1. Employment Income – shall include, but not be limited to, salary, wages, bonuses, commissions, severance pay, workers' compensation, pension income, unemployment insurance, disability insurance and Social Security benefits.
2. Self-Employment Income – shall include, but not be limited to, income from self-employment, rent, royalties, proprietorship of a business, and joint ownership of a partnership or closely held corporation. "Gross income" means gross receipts minus ordinary and necessary expenses required to produce such income.
3. Other Employment-Related Income – shall include, but not be limited to, the average monthly value of any expense reimbursements or in-kind payments received in the course of employment that are significant and reduce personal living expenses, such as a furnished automobile, a clothing allowance, and a housing allowance.
4. Other Non-Employment Related Income – shall include, but not be limited to, dividends, interest, annuities, capital gains, gifts, prizes, and pre-existing periodic alimony.
RULE 32, ALABAMA RULES OF JUDICIAL ADMINISTRATION, PROVIDES THE FOLLOWING DEFINITIONS:
Income. For purposes of the guidelines specified in this Rule, "income" means the actual gross income of a parent, if the parent is employed to full capacity, or if the parent is unemployed or underemployed then it means the actual gross income the parent has the ability to earn. Gross Income. "Gross income" includes income from any source, and includes, but is not limited to, income from salaries, wages, commissions, bonuses, dividends, severance pay, pensions, interest, trust income, annuities, capital gains, Social Security benefits, workers' compensation benefits, unemployment insurance benefits, disability insurance benefits, gifts, prizes, and preexisting periodic alimony. "Gross income" does not include child support received for other children or benefits received from means-tested public assistance programs, including but not limited to, Aid to Families with Dependant Children, Supplemental Security Income, food stamps, and general assistance. Self-employment Income. For income from self-employment, rent, royalties, proprietorship of business, or joint ownership of a partnership or closely held corporation, "gross income" means gross receipts minus ordinary and necessary expenses required to produce such income, as allowed by the Internal Revenue Service, with the exceptions noted in Rule 32 (B)(3)(b). Under those exceptions, "ordinary and necessary expenses" does not include amounts allowable by the Internal Revenue Service for the accelerated component of depreciation expenses, investment tax credits, or any other business expenses determined by the court to be inappropriate for determining gross income for purposes of calculating child support. Other Income. Expense reimbursements or in-kind payments received by a parent in the course of employment or self-employment or operation of a business shall be counted as income if they are significant and reduce personal living expenses. Child Day Care Rates The Alabama Child Support Guidelines provide an adjustment for work-related child care costs, provided such costs do not exceed those on the schedule of guidelines for licensed child care costs published by the Alabama Department of Human Resources (DHR). The following are the DHR weekly child care rates for all Alabama counties effective as of October 1, 2005. Rates are given for three school ages: infants/toddlers (0-30 months of age); preschool (30 month - school age); and school age. Rates are also given according to four licensing categories. To determine the maximum adjustment you may enter for work-related child care costs, select the type of child care service you use from the list below. Then check the weekly rate for your county and the age of your child(ren). The following rates are per child. For more than one child, add the costs for each child to determine the maximum adjustment. The maximum rate for part-time child care services is one-half the full time rate for the type of care and the age of the child. Click on the link below to determine maximum work-related child day-care costs
GENERAL INSTRUCTIONS FOR CALCULATING CHILD SUPPORT Using the CS-42 Form: 1. Fill in the Monthly Gross Income for each Party in the space provided on line 1. 2. Line 1a: List any preexisting Child Support Payment Obligation 3. Line 1b: List any preexisting Periodic Alimony Payment Obligation 4. Line 2: Subject lines 1a and 1b to determine the Monthly Adjusted Gross Income for each Party. 5. Add the Monthly Adjusted Gross Income for each Party and add that result to the column marked "Combined" 6. Determine the Percentage Share of Income (Each parent's income on Line 2 divided by the Combined Income) Example : Plaintiff Monthly Gross Income = $2000 Defendant's Monthly Gross Income = $ 1500 Combined Monthly Income = $3500 Plaintiff's Percentage Share of Income = 57.14% Defendant's Percentage Share on Income = 42.86% 7. Determine the Basic Child Support Obligation from the "Schedule of Basic Child Support Obligations" Example: Using the Combined Gross Monthly Income in the example above, according to the Scdedule of Basic Child Support Obligations, Basic Child Support Obligation for one child is $490 8. Add that number to the space provided on Line 4. 9. Determine the Monthly cost of work-related child care costs, either using receipts or using the Work -Related Child Care Cost Rates. Add that number to the space provided on Line 5. Example: In our example, the Monthly work-related child care cost is $200 10. Add the cost of any health insurance premiums paid on behalf of the minor child(ren) to the space provided on Line 6. Example: In our example, the Plaintiff pays $250/month in health insurance premiums for the minor child. 11. Add the figures on Lines 4, 5, 6, and 7 and place that number in the space provided on Line 8. Example: The Total Child Support Obligation is $940. 12. On LIne 8 determine Each Parent's Child Support Obligation by multiplying Line 7 by the percentage in line 3. Example: Plaintiff's Percentage .5714 X $940 = $537.12 Defendant's Percentage .4286 X $940 = $402.88 13. In Line 9, list the health insurance costs paid by the obligor (non-custodial parent) (from Line 6) 14. In Line 10, subtract any health insurance costs paid by the non-custodial parent from the number on Line 9 to determine the amount of child support obligation to be paid by the non-custodial parent. Leave custodial parent's column blank. Example: Plaintiff is non-custodial parent: $537.12 - $250.00 = $287.12 |
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