Child Support Changes in 2024

The year 2024 is bringing significant changes to the child support landscape in California. These updates aim to create a fairer, more efficient system that better addresses the needs of both parents and children. Here’s a comprehensive look at the key changes that will impact child support calculations and enforcement starting this year.

1. Pass-Through of Assigned Welfare Arrears

What’s New? Previously, only a portion of child support payments passed through to families on welfare. With the introduction of Family Code § 17504.2, 100% of assigned arrears will now pass through to formerly assisted CalWORKs families starting May 2024. By January 2025, this will extend to currently assisted families with the implementation of Family Code § 17504.4.

Impact: This change ensures that more child support reaches the families who need it most, rather than being used to reimburse the state. It provides crucial financial support directly to families, helping them better meet their needs.

2. Prove-Up Hearings for Earning Capacity Cases

What’s New? For cases where child support is based on presumed income, courts will now require prove-up hearings starting in 2026. This means that a detailed examination of the obligor’s earning capacity will be conducted, and annual reviews will be mandated to adjust support based on actual income.

Impact: This approach ensures a fairer assessment of the obligor’s ability to pay, reducing defaults based on inaccurate income assumptions and promoting transparency in income reporting.

3. Changes to the Child Support Formula

What’s New? The “K factor,” which determines the percentage of net income allocated for child support, has been updated for the first time in over 30 years. The new formula lowers the percentage for lower-income parents and adjusts it progressively for higher-income brackets. Effective September 1, 2024, the new Family Code § 4055 will implement these changes.

Impact: This adjustment aims to make child support payments more equitable and reflective of parents' financial realities. It helps alleviate the financial burden on low-income parents while ensuring adequate support for their children.

Examples:

  • Parent A earns $5,000, Parent B earns $4,000, and they have two children.
    Old guideline: $1,418
    New guideline: $1,679

  • Parent A earns $3,000, Parent B has no income, and they have one child.
    Old guideline: $720
    New guideline: $582

4. Higher Threshold for Low-Income Adjustments

What’s New? The threshold for low-income adjustments has been significantly increased. Starting September 1, 2024, the new threshold will be $2,773.33 per month, up from $2,056 per month in 2023. This adjustment is tied to the full-time minimum wage.

Impact: This substantial increase provides relief to low-income parents by creating a rebuttable presumption of a downward adjustment in support, ensuring that child support obligations do not disproportionately burden those earning below the threshold.

5. Greater Latitude for Deviation from Guideline Support

What’s New? New provisions under Family Code § 4057(b)(5) allow courts to reduce support amounts if, after applying the low-income adjustment, the support still exceeds half of the obligor’s net income. Additionally, Family Code § 4057(c) provides courts with greater flexibility to deviate from guidelines when multiple child support cases are involved.

Impact: These changes offer much-needed flexibility and fairness, especially for obligors with multiple child support obligations, ensuring support orders are more manageable and just.

6. Updated Apportionment of Child Support Add-Ons

What’s New? The new law presumes that add-on expenses will be apportioned according to the parents’ net incomes, rather than the previous 50/50 split. Effective September 1, 2024, the burden of proof lies on the parent requesting a different apportionment to demonstrate that it would be just.

Impact: This change ensures that child support add-ons are allocated more equitably based on each parent’s financial capacity, reflecting their true ability to contribute to additional child-related expenses.

7. Changes to Childcare Cost Collection

What’s New? Childcare costs related to employment or necessary education/training for employment skills will now be collected as additional child support, provided these expenses are actually incurred. This change is effective September 1, 2024, under Family Code § 4062(a)(1).

Impact: Aligning the collection of childcare costs with actual expenses ensures that parents only pay for costs that are genuinely needed, promoting fairness in child support orders.

8. Adjustments for Incarcerated Obligors

What’s New? Child support for incarcerated obligors will be suspended until the first full day of the tenth full month following their release, effective January 1, 2024, under Family Code § 4007.5. This replaces the previous sunset clause that required legislative renewal.

Impact: This provision offers a more predictable and fair system for adjusting child support obligations for incarcerated individuals, helping them reintegrate into society without the burden of insurmountable debt.

9. Uncollectable Debt

What’s New? Local Child Support Agencies (LCSA) are now permitted to cease enforcement of child support arrearages assigned to the state that are determined to be uncollectable, as per Family Code § 17400(a)(2)(A). This does not impact arrears owed to the parent.

Impact: This change allows for more efficient use of resources by focusing enforcement efforts on collectable debts, while relieving obligors of the burden of uncollectable arrears.