How is Child Support Calculated in New Zealand?

Navigating child support calculations can be complex for parents in New Zealand. Understanding how child support is determined is crucial for ensuring that children receive the financial support they need. In this article, we’ll explore the factors that influence child support calculations and provide insights into the legal framework that governs these decisions.

The Child Support Act 1991

In New Zealand, child support is primarily regulated by the Child Support Act 1991. This legislation outlines the principles and methods for assessing and enforcing child support payments. The Act aims to ensure that both parents contribute to their children’s financial needs, even if they are not living together.

Factors Considered in Child Support Calculations

Several key factors are taken into account when calculating child support in New Zealand:

1. Income of both parents: The taxable income of both the paying parent and the receiving parent is considered. This includes income from employment, self-employment, investments, and other sources.
2. Number of children: The number of dependent children requiring support is a significant factor in determining the amount of child support payable.
3. Living arrangements: The amount of time each parent spends caring for the children can impact the child support calculation. Shared care arrangements, where both parents have significant care time, may result in reduced child support obligations.
4. Other dependent children: If either parent has other dependent children living with them, this can be taken into account when assessing child support payments.

The Child Support Formula

The Inland Revenue Department (IRD) uses a standardized formula to calculate child support. The formula takes into account the factors mentioned above and determines the amount of child support payable by the liable parent. The formula is designed to provide a fair and consistent approach to child support assessments.

Here’s a simplified overview of the child support formula:

1. Each parent’s taxable income is determined.
2. A living allowance is deducted from each parent’s income to cover their basic living expenses.
3. The combined child support income of both parents is calculated.
4. The child support percentage is determined based on the number of children requiring support.
5. The liable parent’s share of the child support income is calculated.
6. The child support payable is determined by applying the child support percentage to the liable parent’s share of the child support income.

Departing from the Formula

In some cases, the IRD may depart from the standard child support formula if it would result in an unjust or inequitable outcome. Factors that may warrant a departure include:

• High costs of contact with the children, such as travel expenses.
• Special needs or expenses of the children, such as medical costs or educational needs.
• Income, earning capacity, property, and financial resources of either parent.
• Any other special circumstances that would make the formula assessment unfair.

If you believe that the standard child support assessment is not appropriate in your situation, you can apply for an administrative review or appeal the decision through the Family Court.

Conclusion: How is Child Support Calculated?

In New Zealand, child support is calculated using a standardized formula that takes into account the income of both parents, the number of children requiring support, living arrangements, and other relevant factors. The Child Support Act 1991 provides the legal framework for these calculations, aiming to ensure fair and consistent assessments.

Navigating child support can be complex, and seeking legal advice from an experienced family lawyer can be invaluable. Naomi Cramer, a leading family lawyer in New Zealand, can provide expert guidance on child support matters. With her in-depth knowledge of family law and dedication to her clients, Naomi can help you understand your rights and obligations regarding child support.

If you have questions about how child support is calculated or need assistance with a child support dispute, don’t hesitate to contact Naomi Cramer for personalized legal advice. With her expertise in child support, parenting orders, and other aspects of family law, Naomi is well-equipped to guide you through the complexities of child support calculations and help you achieve a fair outcome for your family.

No solicitor-client relationship is created by this article. The author and owner shall not be liable for your reliance on the information contained in this article. Readers should obtain their own independent legal advice.