2024 updates to 4061(b)

What are Child Support Add-Ons? Child support add-ons cover additional expenses beyond basic living costs, such as childcare, healthcare, and educational needs. These add-ons can be mandatory, meaning the court must order them paid, or discretionary, meaning the court can order them paid based on specific circumstances.

Key Changes:

• Mandatory Add-Ons: These include work-related childcare costs (or necessary education for employment skills) and uninsured healthcare costs for the children.

• Discretionary Add-Ons: These cover costs related to the educational or other special needs of the children and travel expenses for visitation.

Previous Law: Under Family Code § 4061(a), there was a presumption that child support add-ons would be split 50/50 between parents. The parent requesting a different apportionment had the burden of proving that an alternate distribution would be just.

New Law (Effective September 1, 2024): The new Family Code § 4061(a) changes the presumption to apportion add-on expenses according to the parents’ net incomes. This means that the financial contributions will be more accurately aligned with each parent’s ability to pay.

Impact: This change ensures that wealthier parents contribute a fair share based on their income, promoting equity in covering additional child-related expenses.

2. Changing How Childcare Costs Are Collected

Previous Law: Childcare costs related to employment or necessary education/training for employment skills were collected as additional child support, based on a presumed need.

New Law (Effective September 1, 2024): Under the updated Family Code § 4062(a)(1), childcare costs will be collected as additional child support only if those expenses are actually incurred. This change ensures that only genuine costs are considered in child support calculations.

Key Differences:

• Current Law: Childcare costs related to employment or education/training for employment skills are automatically considered.

• New Law: Childcare costs must be actually incurred and necessary for employment or education/training for employment skills, unless specifically included in the guideline calculation itself.

Impact: This update aligns child support obligations with actual expenses, ensuring parents only pay for legitimate childcare costs. For wealthier families, this means a more accurate reflection of their financial responsibilities.

Conclusion: The 2024 updates to California's child support laws bring significant improvements in how child support add-ons and childcare costs are calculated and apportioned. These changes ensure a fairer distribution of expenses, particularly for higher-income families, by aligning contributions with actual financial capacity and incurred costs. If you have any questions about how these changes might affect your child support obligations, please contact us for personalized guidance and support.

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.

Questions about Mediation

What is mediation? Mediation is a voluntary process where a neutral third party, called a mediator, helps disputing parties communicate and negotiate to reach a mutually acceptable agreement. It is often used as an alternative to going to court.

How does mediation differ from going to court? In mediation, the parties have control over the outcome and work collaboratively to reach a solution, whereas in court, a judge makes the final decision. Mediation is typically less adversarial, less expensive, and faster than litigation.

What types of disputes can be resolved through mediation? Mediation can be used for various types of disputes, including family law matters (such as divorce, child custody, and spousal support), workplace conflicts, business disputes, and more.

What should I expect during the mediation process? During mediation, the mediator will facilitate discussions between the parties, help identify the issues, and guide them toward mutually agreeable solutions. The process involves open communication, negotiation, and compromise.

Do I need a lawyer during mediation? While it is not required to have a lawyer during mediation, it can be beneficial to seek legal advice to understand your rights and options. You may choose to consult with a lawyer before or during the mediation process.

How long does mediation typically take? The duration of mediation varies depending on the complexity of the issues and the willingness of the parties to reach an agreement. Some mediations may be resolved in a few sessions, while others may take longer.

Balancing Legal and Emotional Needs

How are legal issues addressed in mediation? The mediator ensures that both parties are fully informed about their legal rights and options. This includes explaining relevant laws and legal principles that apply to the case, while also respecting the parties' autonomy to make their own decisions.

What if emotions run high during mediation? It is natural for emotions to be a part of the mediation process. The mediator is trained to handle emotional dynamics and will help create a safe and respectful environment for both parties to express their feelings and concerns.

Can we discuss personal and emotional issues in mediation? Yes, personal and emotional issues often play a significant role in disputes. Addressing these issues can help both parties feel heard and understood, leading to more meaningful and lasting resolutions.

Creative Problem-Solving

How can mediation help in finding creative solutions? Mediation offers the flexibility to explore creative solutions that work best for your unique situation. Unlike court, where decisions are made by a judge, mediation allows you to craft personalized agreements.

What if we can't agree on a solution? If the parties cannot reach an agreement, they still have the option to pursue other forms of dispute resolution, such as arbitration or litigation. However, many disputes are successfully resolved through mediation.

Effective Communication in Mediation

How does the mediator ensure effective communication? The mediator uses techniques such as summarization and reflective listening to ensure that both parties understand each other. This helps prevent miscommunications and fosters a cooperative atmosphere.

Can I speak privately with the mediator? Yes, you can request a private session (called a caucus) with the mediator at any time during the mediation process. This allows you to discuss concerns or explore options confidentially.

Costs and Confidentiality

How much does mediation cost? The cost of mediation varies depending on the mediator’s fees and the complexity of the case. Mediation is generally more cost-effective than going to court. Some mediators offer sliding scale fees based on income.

Is mediation confidential? Yes, mediation is a confidential process. Communications during mediation cannot be used as evidence in court, and the mediator cannot be called as a witness. This encourages open and honest dialogue.

Mediation Outcomes

What happens if we reach an agreement in mediation? If an agreement is reached, the mediator will help draft a written agreement that outlines the terms. This agreement can be reviewed by lawyers and, if necessary, submitted to the court for approval.

Prenup Questions Answered

1. In simple terms, what exactly is a prenup? A prenuptial agreement, or prenup, is a legal contract that a couple enters into before getting married. It outlines how their assets and debts will be divided and specifies financial responsibilities during the marriage, such as who pays for what. A prenup can also address scenarios in the event of a divorce, including support payments from a higher earner to a lower earner. It considers life changes, such as unemployment or disability, and how these would be managed financially. Additionally, it can include provisions related to inheritances and properties acquired before or during the marriage, ensuring clarity and fairness.

2. Who usually needs a prenup? Prenups are particularly beneficial for individuals with significant assets, business owners, those with children from previous relationships, or anyone who wants to clarify financial expectations and responsibilities before marriage. They are also useful for people expecting significant changes in financial circumstances, such as inheritance or career changes.

3. What can and can't be protected by a prenup? For instance, is it possible to protect a house acquired before marriage? In California, a prenup can define separate property and community property during marriage, divorce, and death. It can specify the choice of law that will apply if you divorce and address how funds will be used during the marriage, such as payments from community funds towards someone's separate property residence. You can protect a house acquired before marriage as separate property. However, it cannot include anything illegal or unenforceable, such as decisions regarding child custody or support.

4. What are the pros and cons of a prenup (especially for women)? Pros: Protects assets and clarifies financial interests, decreases ambiguity in financial expectations and responsibilities, and can prevent lengthy and costly divorce proceedings. Cons: May create tension or discomfort when discussed and could be seen as unromantic or suggesting a lack of trust.

5. Do couples need a prenup if they have a Trust? While a Trust can provide some financial protections, it does not replace the need for a prenup. A prenup addresses the division of all assets and debts, including those not covered by the Trust, and can provide additional clarity and protection.

6. What should a woman ask for in a prenup (especially if she is marrying a man)? A woman should consider including protection of premarital assets, clear terms for spousal support, division of marital assets, responsibilities for debts, and provisions for significant life events, such as children and relocation. She should also consider addressing the use of community funds and the treatment of any inheritances.

7. What can't be asked/included in a prenup? For instance, infidelity clauses are accepted in the U.S? Prenups cannot include terms related to child custody or support, as these are determined by the court based on the child's best interests. Infidelity clauses are generally not enforceable in the U.S., as they are considered against public policy.

8. How to make a prenup? Do you need to hire a lawyer and/or pay any specific fees? To create a valid prenup in California, both parties should hire their own lawyers to ensure it meets all legal requirements and is enforceable. Each party should have their own attorney to avoid conflicts of interest. Legal fees will vary depending on the complexity of the agreement and the attorneys' rates.

9. Does a prenup need to be notarized? While there is no legal requirement in California for notarization, it is generally recommended to notarize the prenup to confirm the authenticity of the signatures and ensure it is legally binding.

10. If the couple divorces, are the terms of the prenup automatically executed, or are there situations where the law “overrules” the prenup? Generally, the terms of a prenup are executed as written. However, a court can overrule a prenup if it is found to be unconscionable, signed under duress, or includes illegal or unenforceable provisions. In California, the court has recently focused on the voluntariness of a prenup and has found that some limits on spousal support are unconscionable.

11. In your experience dealing with clients, do couples lose trust in each other when a prenup is suggested? While discussing a prenup can be uncomfortable and may lead to initial tension, it often leads to clearer communication and mutual understanding of financial expectations. Many couples find that it strengthens their relationship by addressing potential issues upfront.

Prenup Questions

What can't be asked/included in a prenup? For instance, infidelity clauses are accepted in the U.S.?

Prenups cannot include terms related to child custody or child support. Infidelity clauses or clauses that address substance use or gambling are generally not enforceable, as they are considered against public policy.

How to make a prenup? Do you need to hire a lawyer and/or pay any specific fees?

To create a valid prenup in California, you will both need to hire a lawyer to ensure it meets all legal requirements and is enforceable. Each party should have their own attorney to avoid conflicts of interest.

Does a prenup need to be notarized?

No, there is no legal requirement in California for notarization, but we generally recommend it.

If the couple divorce, are the terms of the prenup automatically executed, or are there situations where the law “overrules” the prenup?

Generally, the terms of a prenup are executed as written. However, a court can overrule a prenup if it is found to be unconscionable, signed under duress, or if it includes illegal or unenforceable provisions. In California, the court has recently been focused on the voluntariness of a prenup and has found that some limits on spousal support are unconscionable.