New Child Support Legislation in California: A Closer Look at Parental Earning Capacity Assessment

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In light of the new legislation that came into effect on January 1, 2023, the process of determining a parent's earning capacity for child support in California has become more nuanced. This legislation mandates the courts to delve deeper into the individual circumstances of the parent, as far as known, when establishing or modifying support orders. A myriad of factors come into play, painting a more accurate picture of a parent's financial standing and ability to contribute towards child support.

Understanding the Factors Affecting Earning Capacity

Under the new legislation, as stipulated in Fam C §4058(b)(2), a broader spectrum of factors surrounding a parent's circumstances are to be considered. These include, but are not limited to:

  • Assets

  • Residence

  • Employment and earnings history

  • Job skills

  • Educational attainment

  • Literacy

  • Age

  • Health

  • Criminal record and other employment barriers

  • Record of seeking work

Moreover, the local job market dynamics also play a significant role in this assessment. The courts will consider the availability of willing employers, prevailing earnings levels in the community, and other pertinent background factors that could affect the parent's ability to earn.

Special Consideration: Incarceration or Involuntary Institutionalization

A notable aspect of the new legislation is the treatment of incarcerated or involuntarily institutionalized parents. Per Fam C §4058(b)(3), the law specifies that such circumstances should not be regarded as voluntary unemployment when establishing or modifying support orders, irrespective of the nature of the offense leading to incarceration or institutionalization. This particular provision aligns with the definitions set forth in Fam C §4007.5(e), offering a more balanced approach towards evaluating a parent's earning capacity under challenging situations.

Implications and Moving Forward

This legislative amendment reflects a more compassionate and realistic approach towards evaluating a parent's financial capability for child support. By considering a broader range of life circumstances, the law aims to foster fairer child support determinations that truly resonate with the parent's ability to contribute.

The nuanced assessment of earning capacity underscores the evolving landscape of family law in California, promoting a more equitable framework for child support that aligns with the realities faced by parents today. This is a progressive step towards ensuring that child support orders are just, equitable, and in the best interest of the child, while also being fair and achievable for the parents involved.