LOWERING CHILD SUPPORT

GUIDE

NEW JERSEY EDITION

Copyright 2009

Lower your support and make sure your money is actually being spent on your children once you master simple techniques that anyone can learn! Stop losing out the “X” on child support and use our powerful strategies that gain equal rights in an unfair court system. - Guaranteed! If you think you are paying too much in child support, you probably are. If you are a non-custodial parent paying child support, you’re in the right place. If you are paying unreasonable child support you are the victim of one of the most intrusive as well as biased aspects of family law today.

You must be tired!

Tired of being portrayed by the media and the courts as a “Deadbeat” and viewed as nothing more than a check. Tired of unfair, biased support calculations and inflated wage assignments the courts call judgments. Tired of being required to account for any and all income received but watching as absolutely no accountability of how money is spent by the custodial parent. Tired of being afraid to get a promotion or raise at work because inevitably that will mean more will be withheld form your paycheck. Tired of felling like a helpless victim of unfair and partial child support legislation with no end in sight.

We are too! Don’t let family and friends tell you that you’re screwed, and that custodial parents have the upper hand. You still have rights and can write your own ticket in this unfair system.

The purpose of this is to inform and educate non-custodial parents paying child support, how to protect yourself against unfair and inflated judgments and offer a guide to minimize child support payments. No one denies that a non-custodial parent has a duty to support his or her children. This is not advocating the non-payment of child support or approves of anyone who tries to elude his or her obligation. We are law-abiding parents who love their children but through unfortunate circumstance have been cast into a nightmare of a child support system that has been in desperate need of an overhaul. A support system that is at best unfair, and at worst unconstitutional. Make no mistake about child support collections, its big business. It is in the public agencies best interest to collect as much as possible from non-custodial parents because the funding they receive is directly proportional to the amounts they collect. Private companies have made child support collection a million dollar a year industry. With this “take em to the cleaners” philosophy by the public and private sector, coupled with a very dim view held by the media and the courts toward non-custodial, a parent does not stand much of a chance against over the inflated judgments waged upon them. The non-custodial parent is held accountable for where they are employed, where they live, and any and all income. The custodial parent is held accountable for nothing. According to the law, the court must presume that the custodial parent is supporting the child. The custodial parent receives money on behalf of the child. If child support money is used to pay for a new house or car shouldn’t the child have equity, or be named on the deed or title? By keeping support payments at a minimum a non-custodial parent can make direct purchases of food, clothing and services for the children. Until legislators step in, (which may take years) non-custodial parents will continue to feel helpless, depressed and powerless in light of unfair and inflated support judgments against them. Now don’t get us wrong – we are not advocating an avoidance of paying your responsibility, but we do believe that in many circumstances these “child support” payments tend to become “mother and boyfriend support” payments. Only you can be the judge of that and whether this is a good option for you to pursue.

Here are the choices:

1. Continue to pay grossly inflated support payments hoping someday legislation will change. Meanwhile living a substandard quality of living than you’re entitled to.

2. Simply do not pay or flee. Aside from being ludicrous, this will

negatively impact the child. In addition, with this type of irresponsible action, arrearages simply add up plus lead to incarceration.

3. Educate and protect yourself by learning techniques from the lowering

child support guide. The lowering child support guide is a source of support and information for the man or woman facing separation from their children including support, insurance and child care issues. This is a rough new road ahead and you can benefit from the experience of those who have gone before you. (and perhaps learned the hard way!) By the way - Shawn Combs aka Puff Daddy is currently paying over $30,000 per month in child support for one child. (well and maybe the mother too) Ouch!

FACTS

The U.S. Census Bureau has reported that fathers with joint custody pay 90.2% of all child support ordered; fathers with limited visitation rights pay 79.1%; and 44.5% of those fathers with no visitation rights still financially support their children. 30% of custodial mothers not receiving child support have never asked for or do not want child support. 25% of custodial mothers do not receive child support because the father is unable to pay. 20% of custodial mothers not receiving child support have made other financial arrangements with the father. 11% of custodial mothers not receiving child support do not have a child support order. Of ten million custodial mothers only 7% (one out of fourteen) do not receive child support because of a deadbeat dad. 63% of youth suicides are often from fatherless homes. (Source: U.S. D.H.K.S., Bureau of the Census) 90% of all homeless and runaway children are from fatherless homes. 85% of all children that exhibit behavioral disorders come from fatherless homes. (Source: Center for Disease Control) 80% of rapist motivated with displaced anger come from fatherless homes. (Source: Criminal Justice & Behavior, Vol 14, p-403-26, 1978) 71% of all high school dropouts come from fatherless homes. (Source: National Principals Association Report on the State of High Schools) 75% of all adolescent patients in chemical abuse centers come from fatherless homes. (Source: Rainbows for all Gods children) 70% of juveniles in state-operated institutions come from fatherless homes. (Source: U.S. Dept. of justice, special report, Sept. 1988)

These facts translate to mean that children from a fatherless home are:

• 5 times more likely to commit suicide. • 32 times more likely to run away. • 20 times more likely to have behavioral disorders. • 14 times more likely to commit rape. • 9 times more likely to drop out of high school. • 10 times more likely to abuse chemical substances. • 9 times more likely to end up in a state-operated institution. • 20 times more likely to end up in prison.

How is New Jersey child support determined?

In New Jersey, provisions for the support, care and education of a child may be ordered to be paid by a parent. The factors the courts consider are:

• the needs of the child

• the standard or living and the financial circumstances of both parents

• the financial resources, needs and obligations of both parents

• the earning power of each parent

• the child’s need and capacity for education, including college work

• the age and health of the parents and the child

• any income and assets and earning ability of the child

• whether either parent has a responsibility to support others

• any debts and liabilities of the parents or the child

• any other relevant factors

There are official New Jersey Child Support guidelines, designed to be in the best interests of the child, that the courts use to help determine the correct amount of child support. These will be followed, unless both parents agree to an amount other than that calculated by the guidelines, or the courts decide the guidelines are unjust due to specific circumstances of the case.

Using the Income Shares model, computation of child support is basically a four-step process:

1. The income of the parents (gross or net) is determined and added together. 2. A "basic child support obligation" is computed based on the combined income of the parents, using a table or grid in the guidelines.

The amounts in the table are derived from economic data on household expenditures on children. 3. A "presumptive child support obligation" is then computed by adding expenditures for work-related child care expenses and extraordinary medical expenses to the basic child support obligation. Other add-ons and deductions may also be calculated. 4. The presumptive child support obligation is prorated between each parent based on his or her proportionate share of total income. The obligor's obligation is payable as child support, while the obligee's obligation is retained and presumed to be spent directly on the child.

At what age does child support payments end?

Generally, the obligation ends when the child reaches 18 years of age.

New Jersey's custody guidelines:

Generally, the parents agree upon decisions about parenting and custody. If there is no agreement, then the courts will make these decisions.

In New Jersey, joint or sole custody may be awarded, without any preference given based on the sex of the parent. The courts consider the best interest of the child based on the following:

• the parents' ability to agree and communicate in matters relating to the child

• the parents' ability to accept the custody arrangement

• any history of failing to allow parenting time without good cause (i.e. abuse)

• the interaction and relationship of the child with his or her parents and siblings

• domestic violence

• child's safety and the odds of either parent being abused by the other

• the child's preference as soon as the child is of sufficient age to make an intelligent and informed decision

• the continuity and quality of the child's education

• fitness of the parents

• stability of the home environment and the needs of the child

• proximity of the parents' homes

• parents' employment responsibilities and the extent and quality of the time spent with the child prior to the separation

• the age and number of children in each household

In New Jersey, a non-custodial parent may not forcibly take a minor child from the custodial parent's actual physical custody.

New Jersey's medical insurance guidelines:

Generally, the decision as to which parent is going to provide medical insurance coverage for the child and how medical bills will be paid is set out in the marital settlement agreement. Usually, if a reasonable medical insurance plan is available through one of the parent’s employment, they are required to cover their child on it.

How permanent are the provisions for New Jersey child support and custody?

Court orders providing for support and custody of children are subject to change or modification to reflect significant changes in income, and/or living arrangements of the children.

While all orders concerning the children are modifiable in the future, we encourage you to not enter into an agreement based on the idea that it can always be changed or modified later.

Wage garnishment for child support payments:

Most states, including New Jersey, have a provision for withholding child support directly from the earnings of the parent who has been ordered to provide support. It is withheld much like income tax is withheld from earnings payments.

This way of paying and receiving child support is generally easier for both parties and considered a very dependable solution. The way it typically works is, once the support is withheld, it is then sent to the state agency authorized to receive and disburse payments. Once it has been verified that the support was paid, it is then sent to the parent designated to receive the support.

The parent receiving child support is given a choice of whether or not it shall be paid through the state agency. For this privilege, the parent will generally pay a nominal fee and become a IV-D services recipient.

How does joint custody work?

To understand joint custody, you must first know that there are two types of custody - physical custody and legal custody.

Physical custody refers to where the child resides. In joint physical custody (now called shared custody) of minor children, both parents share the responsibilities of the children, and both parents approve all major decisions related to the children. The children must reside with each parent more than 28% of the time in order to fall into this category

While joint physical custody is a 50-50 sharing of responsibilities and major decisions affecting the children, it rarely works out to be a 50-50 sharing of time with the children. Usually, one parent is named as the parent of primary residence and the other parent (called the parent of alternate residence) is granted parenting time. The parent of primary residence typically retains the decision making power to determine the child’s primary residence and school and to designate things such as the child’s primary physician.

Legal custody does not involve where the child resides. In joint legal custody, the child may live with one parent, but both parents receive the health, education and welfare reports, and both have input but not veto power in major decisions such as college or non-elective surgery. When the parents cannot agree, the court decides for them.

How New Jersey determines child visitation:

Generally, parents are free to have parenting time with their children at times that are mutually agreed to by both parents. However, when parents cannot agree, the standard parenting time schedule accepted most everywhere in the nation is:

• every other weekend plus one or two dinners per week

• three to five (3-5) weeks during the summer

• alternating holidays

When a parent lives in another state and has infrequent parenting time on a regular basis, they often receive a large share of the parenting time during the summer and on school vacations during the year (i.e., winter break, spring break, February vacation, summer recess).

Essentials for dealing with your new situation

A. A Lawyer

– hate to tell you, but you will most likely need a lawyer to help protect your parental rights. THAT’S RIGHT – YOU STILL HAVE RIGHTS!! Besides the obligation to pay support, you still have all the rights that go along with that provided you don’t give them away. A good lawyer is key in helping you do this. As with most things in this life you seem to get what you pay for – consider this fact when choosing your counselor.

B. A Solid Financial Plan

– Yes a real budget but much more than that - doing your homework on Insurance, medical savings accounts, life insurance and tax strategies. It is true that people have been arrested and put in jail for failing to pay the court ordered support. You can’t afford to be one of those people. With a complete plan – the initial stress you are probably feeling can be significantly reduced.

C. Knowledge of the Topic

– knowledge is power! Knowing your rights gives you a position of equal power (not a lesser than parent who is only wanted for Cash!) This will be an ongoing thing in your life for up to 18 or possibly more years, can you afford (literally) to be uninformed and just follow the crowd. We don’t think so!

D. Resources

– There are a variety of local, state and federal agencies that are available to help you with a wide array of related issues. We will provide you with contact information for these sources. They are free – might as well use them.

FINANCIAL CONSIDERATIONS

These are typical components on most court ordered support documents…your case may not require all of these. Know what you are required to do and for how long!

A. Insurance for the Child – Are you required to provide it?

1. Company sponsored health plan where you work.

2. Individual insurance policy

3. State Coverage (many states have an umbrella type of child coverage)

B. Child Care (day care) Expenses – Are you required to provide $ for it?

1. Is it a % of the total childcare expenses?

2. How is this $ verified to the court? Hopefully cancelled checks will be provided so you can know this is actually being paid.

3. Who is providing this care for your child…you have a right to some input regarding who this is. It’s not some unemployed relative who is claiming to be paid $1500 / month is it?? It happens all the time.

C. Life Insurance on you with the child as beneficiary. Are you ordered to provide this? If not – do you want to anyway? Probably a very good idea.

1. Employer sponsored life insurance plan. Probably your cheapest option – term coverage.

2. Individual life insurance policy.

D. College Funding – Are you required to pay for it by court order and if so how much a month or year and into what type of investment? (If there are any restrictions on what type of investment product – it will say in the court order.)

1. UGMA / UTMA Account – Listed in the child’s name and turned over to them at majority age. Now you can still choose the type of investment vehicle inside this UGMA account (CD’s, Bonds, Stocks, and Mutual Funds). If you have joint custody typically it means that you get to make these decisions, after all you are contributing the $.

CHILD SUPPORT PAYMENTS – YOU ARE REQUIRED TO MAKE THESE! No doubt about it. Make sure you are familiar with the process of payment. This varies dramatically state by state. You are required to pay a percentage of your net (after tax) paycheck…

The NET amount is the key! Three things affect your gross and net check amounts:

1. Deductions for Retirement Plans

2. Deductions for Health Insurance

3. Deductions for Taxes

What is left is your NET check amount. Not all states include retirement plan contributions as an eligible deduction. Check your specific state to see if you can use retirement plans contributions to reduce your net check.

* NOT MANY PEOPLE KNOW THIS! *

When you started your job way back whenever – you completed an IRS W–4

There is also another box (line 6) on this form where you are asked “is there an additional amount that you would like to withhold from your check for taxes?” Nobody ever does this right? Wrong!

form that listed your name, address, social and how many dependents you are allowed to claim.

NOW IS THIS TIME!!!

You can specify an additional amount that you can handle to be withheld from your check or about 20% of your gross income to be applied to taxes, however at the end of the year you normally get a refund – guess what? YOU WILL GET ALL THAT MONEY BACK!

You can submit a new W–4 form to your employer at any time and they have them on hand.

So why would you want to delay getting this money until tax time? Because it will SIGNIFICANTLY REDUCE YOUR “NET” income, which is, what your child support payment % is based on.

Your tax allowances and withholding can be changed as often as needed by law with your employer. Under current law it is totally legal and you cannot be penalized for adding an additional withhold amount on your W–4. Next page is an example…

Your child support payment is based on your NET PAY dollar amount on your pay stub. The key to lowering your child support payment is to have the most deductions possible on your paycheck.

Taking out your work-sponsored health insurance on yourself and your children, 401K plans, and the most taxes possible with additional withholding is what will lower your net pay.

Taking out all these deductions will usually drop your net pay by half. We know this is a lot less money than you are used to making, after taking out these deductions. The good news is that this is just temporary, only short term through your child custody and support case.

Once your child custody and support case is over and your court dates are done, these deductions can be changed back to your original level. You then will be back to your original paycheck dollar amount and comfort of what you are used to making. The court’s calculation for deciding the child support payment amount is a 1 time finding during your court case based on your pay stub. This is not an ongoing process of checking what you are currently making for your child support payment percentage.

You can then reduce your heath insurance and 401K plans, as well as change your tax allowances and deductions back to what they were originally. This will bring you back to what you were making originally and your paycheck amount will be back to what it was before your child custody and support case.

GROSS INCOME STATE CALCULATIONS

These are some ways to lower your gross income for your states calculation. A. Rearranging your salary 1. Stock options - Instead of earning a straight salary, rearrange your compensation so that you are paid less, but also receive stock options. Stock options are only considered income when exercised, which could be years away. 2. Tax shelters - Invest in tax shelters. The basic structure of a tax shelter is that the tax benefits from the losses outweigh your investment. The tax losses can also serve to reduce your income for child support purposes. Amounts Earned as an Employee

If you work as an employee, compensation income generally includes your wages, salaries, tips, bonuses, commissions and similar amounts. But the following items don't count as compensation income:

The following items may not be included in your compensation income:

Investment income such as dividends and interest

Pension or annuity income

Deferred compensation (payments postponed from a prior year)

Any form of income that's not taxable (such as foreign earned income and housing allowance that are excluded from income)

The key to lowering your gross income is to change the way you are paid as an employee. Think of ways you can be compensated than your normal pay through your weekly paycheck. Does the company you work for provide products and or services that could be useful to you? Request your employer to change the way you are paid to get company services or products, and lower you hourly or salary rate in place of these discounts for company. Tell your boss you would prefer fringe benefits increases over raises in pay.

LOWERING YOUR INCOME All child support awards are based on income. Some states start with gross, some with net after taxes and allowed adjustments. The best way to lower your child support is to lower your income by one or more of the following methods.

A) Paycheck deductions.

To lower your net income you need take all deductions possible, this will include: health insurance, retirement plans, and taxes. Company sponsored health plans should be taken out on you and all children. Some states also allow up to 10% of your income into retirement plans as a deduction towards your net income. Claim all allowances on your W-4 form and take an additional amount out towards taxes.

B) Income shifting

1. If you are a commission salesman, ask your boss if a friend could have a sales contract and help with sales. This opens may opportunities and possibilities to shift income to a friend who actually participates in the sale.

2. If you are self-employed, consider putting your kids on the payroll for odd jobs or your new spouse as manager. Pay your spouse well, the same as you would have to pay any other employee. The salaries paid lower your net income and thus, child support.

C) Rent from your spouse

Consider renting your home office space, shop, vehicles or equipment form your new spouse or your parents. This will give you the additional benefit that rental income is not subject to social security taxes, saving about 20% of your earnings and, of course, you can pay a reasonable amount of rent on the property!

D) Let your spouse do the saving

Spend your income and let your new spouse save hers put the earned interest into her separate bank accounts. In some states, this won’t work unless you have a pre-nuptial agreement signed before your marriage.

E) Defer income, accelerate deductions

When possible, defer increases of income or commission receipts until after any determination of support and use Section 179 of the IRS Code to the maximum extent possible to lower your income immediately (deductions for business equipment purchases). See your accountant about paying with a charge card to get the full deduction immediately plus increasing your monthly debt (lowers your income).

F) Tell your boss you would prefer fringe benefits increases over raises in pay.

G) Use one charge card to pay for all medical expenses not covered by insurance and essentials bought for the children and pay the bill off monthly until child support litigation is over. This will normally be allowed to reduce your monthly income when computing child support percentage based awards.

LOWERING SUPPORT WITH VISITATION TIME

The percentage of time that children spend with the non-custodial parent can lower support with increased visitation. This percentage is calculated by taking the number of nights the children spend with the non-custodial parent during the year and dividing that number by 365. A standard visitation order with every other weekend, vacation time, and holidays is equal to about 20% visitation time. If you increase your custody and visitation to a higher or an equal amount this may reduce your support payments by the amount of increased time-share. The higher the percentage of non-custodial time-share, the lower the support payment will be made to the custodial parent. Generally, the more time you spend with the children the less child support you will pay.

REDUCING CHILD SUPPORT WITH SSI If your children are disabled and eligible for SSI (even just with learning or attention problems), your child support may be reduced by the amount of SSI payments. These payments are often very substantial and can in many cases wipe out the child support obligation completely.

MODIFICATION OF CHILD SUPPORT If your income drops, petition to modify (lower) your child support immediately. You will be held liable for the unmodified level when your ex goes after you for back support later, after your income increases, if you don’t have a court order lowering your support. Child support does not automatically stop or become modified because of injury, loss of job or any other reason if you are unable to pay support. You must file modification paperwork and make the court aware of your new changed circumstances. The support can only be changed back to the date of the filing, any changes made by the court will be retroactive to the date you filed the court action.

A verbal or written agreement between you and your ex is worthless. Only a judge can agree to lower your support, because only he protects the child’s right to child support. Since child support is the child’s, not your ex’s she cannot agree to lower your support. She can agree to a stipulated order for a judge to sign lowering your support.

The next page is the form you will use to file a motion for modification of child support.

SUPERIOR COURT OF NEW JERSEY COUNTY OF _____________________

In re:

Petitioner, and

Respondent.

CASE NO. PETITION FOR MODIFICATION OF CHILD SUPPORT

I. BASIS

___________________________________________ [Name] represents to the court that: 1.1 PLACE OF RESIDENCE. The petitioner resides in ____________________________________________

[County and State]. The child(ren) reside(s) in __________________________________________

[County and State]. The respondent resides in ___________________________________________

[County and State]. 1.2 JURISDICTION OVER PARENTS. This court has jurisdiction over the parents for the reasons that follow. [ ] There is a ___________ Order of Child Support. [ ] Both parties presently reside in the state of ___________. [ ] Other: 1.3 MOST RECENT SUPPORT ORDER. The most recent support order was entered in __________________________ [County

and State] on ___________________________________ [Date]. The order requires ___________________________________ [Name] to pay

$________ per month for the support of (list name(s) of the child(ren): 1.4 REASONS FOR MODIFYING CHILD SUPPORT. The order of child support should be modified for the following reasons. [ ] The previous order was entered more than two years ago and there has

been a change in the income of the parents. [ ] ___________________________________ [Name of child] is in need of post

secondary educational support because the child is in fact dependent and is relying upon the parents for the reasonable necessities of life.

[ ] ___________________________________ [Name of child] is a dependent adult child and support should be extended beyond his or her 18th

birthday.

[ ] The previous order was entered by default. [ ] The action was commenced by _______ for a child who is receiving public

assistance money and modification pursuant to ___________ is appropriate.

[ ] The previous order was entered more than a year ago and: [ ] The order works a severe economic hardship. [ ] The child has moved to a new age category for support purposes. [ ] The child is still in high school and there is a need to extend

support beyond the child’s 18th

[ ] An automatic adjustment of support should be added consistent with ____.

birthday to allow the child to complete high school.

[ ] Either or both parents should be required to maintain or provide health insurance coverage consistent with ___________.

[ ] There has been the following substantial change of circumstances since

the order was entered (explain): [ ] Other: 1.5 STARTING DATE OF MODIFIED ORDER.

[ ] Does not apply. [ ] The starting date of the modified child support order should be the date

on which this petition is filed. 1.6 OTHER:

II. RELIEF REQUESTED The court should modify the order of child support by requiring either or both parents to maintain or provide health insurance coverage consistent with __________ for the child(ren), if not previously ordered, and by: [ ] ordering child support payments which are based upon the __________ State

Child Support Schedule. A copy of the child support worksheet is filed with this action.

[ ] ordering repayment or credit for overpaid child support since the date of filing this petition.

[ ] ordering payment of underpaid child support since the date of filing this petition or entering judgment in that amount.

[ ] requiring a periodic adjustment of support. [ ] extending child support beyond ___________________________________’s [Name

of child] 18th

[ ] extending child support beyond ___________________________________’s [Name of child] 18

birthday to allow the child to complete high school.

th

[ ] allowing for post secondary educational support for _______________________ [Name of child].

birthday until (he) (she) is no longer dependent upon either or both parents and is capable of self-support.

[ ] ordering the payment of day care. [ ] ordering the payment of educational expenses. [ ] ordering the payment of long distance transportation expenses. [ ] ordering the payment of uncovered health care expenses. [ ] awarding the tax exemption for the children as follows: [ ] ordering the payment of attorney’s fees and costs. [ ] other: Dated: Signature

Print or Type Name I declare under penalty of perjury under the laws of the state of ________ that the foregoing is true and correct. Signed at ______________________________ [City and State] on ____________________ [Date]. Signature

Print or Type Name

CHILD SUPPORT WORKSHEET This is the component of declaring your expenses for your income. Be sure to list all expenses possible and request a special low income range calculation for your case. This will help you show undue financial hardship caused by the child support payments and can be presented to the court to receive a lower payment.

Children and Ages:

Part I: Basic Child Support Obligation 1. Gross Monthly Income Father Mother a. Wages and Salaries $ $ b. Interest and Dividend Income $ $ c. Business Income $ $ d. Spousal Maintenance Received $ $ e. Other Income $ $ f. Total Gross Monthly Income (add lines 1a through 1e)

$

$

2. Monthly Deductions from Gross Income a. Income Taxes (Federal and State) $ $ b. FICA (Soc.Sec.+Medicare)/Self-Employment Taxes

$ $

c. State Industrial Insurance Deductions $ $ d. Mandatory Union/Professional Dues $ $ e. Pension Plan Payments $ $ f. Spousal Maintenance Paid $ $ g. Normal Business Expenses $ $ h. Total Deductions from Gross Income (add lines 2a through 2g)

$

$

3. Monthly Net Income (line 1f minus 2h)

$

$

4. Combined Monthly Net Income (add father’s and mother’s monthly net incomes from line 3)

(If combined monthly net income is less than $___, skip to line 7.)

$

5. Basic Child Support Obligation (enter total amount in box --------→)

Child #1__________________ Child #3

$

Father Mother 6. Proportional Share of Income (each parent’s net income from line 3 divided by line 4)

.

.

7. Each Parent’s Basic Child Support Obligation (multiply each number on line 6 by line 5)

(If combined net monthly income on line 4 is less than $___, enter each parent’s support obligation of $___ per child. Number of children: ________. Skip to line 15a and enter this

$

$

amount.) Part II: Health Care, Day Care, and Special Child Rearing Expenses 8. Health Care Expenses a. Monthly Health Insurance Premiums Paid for Child(ren)

$ $

b. Uninsured Monthly Health Care Expenses Paid for Child(ren)

$ $

c. Total Monthly Health Care Expenses (line 8a plus line 8b)

$

$

d. Combined Monthly Health Care Expenses (add father’s and mother’s totals from line 8c)

$

e. Maximum Ordinary Monthly Health Care (multiply line 5 times .05)

$

f. Extraordinary Monthly Health Care Expenses (line 8d minus line 8e., if “0” or negative, enter “0”)

$

9. Day Care and Special Child Rearing Expenses a. Day Care Expenses $ $ b. Education Expenses $ $ c. Long Distance Transportation Expenses $ $ d. Other Special Expenses (describe) $ $ $ $ $ $ e. Total Day Care and Special Expenses (Add lines 9a through 9d)

$

$

10. Combined Monthly Total Day Care and Special Expenses (add father’s and mother’s day care and special expenses from line 9e)

$

11. Total Extraordinary Health Care, Day Care, and Special Expenses (line 8f plus line 10)

$

12. Each Parent’s Obligation for Extraordinary Health Care, Day Care, and Special Expenses (multiply each number on line 6 by line 11)

$

$

Part III: Gross Child Support Obligation 13. Gross Child Support Obligation (line 7 plus line 12) $ $ Part IV: Child Support Credits 14. Child Support Credits a. Monthly Health Care Expenses Credit $ $ b. Day Care and Special Expenses Credit $ $ c. Other Ordinary Expenses Credit (describe)

$

$

d. Total Support Credits (add lines 14a through 14c) $ $ Part V: Standard Calculation/Presumptive Transfer Payment 15. Standard Calculation Father Mother a. Amount from line 7 if line 4 is below $___. Skip to Part VI.

$ $

b. Line 13 minus line 14d, if line 4 is over $___ (see below if appl.)

$ $

Limitation standards adjustments c. Amount on line 15b adjusted to meet a % of net income limitation

$ $

d. Amount on line 15b adjusted to meet need standard limitation

$ $

e. Enter the lowest amount of lines 15b, 15c or 15d: $ $ Part VI: Additional Factors for Consideration 16. Household Assets (List the estimated present value of all major household assets.)

Father’s Household

Mother’s Household

a. Real Estate $ $ b. Stocks and Bonds $ $ c. Vehicles $ $ d. Boats $ $ e. Pensions/IRAs/Bank Accounts $ $ f. Cash $ $ g. Insurance Plans $ $ h. Other (describe) $ $ $ $ $ $ 17. Household Debt (List liens against household assets, extraordinary debt.)

$ $ $ $ $ $ $ $ $ $ 18. Other Household Income a. Income Of Current Spouse (if not the other parent of this action) Name _________________________________________________ Name _________________________________________________

$ $

$ $

b. Income Of Other Adults In Household Name _________________________________________________ Name _________________________________________________

$ $

$ $

PRESENTING YOUR CASE IN COURT Get to the court about a half hour before your court hearing time. Try to talk to a Family Services Officer or a Support Enforcement Officer as this person can help you with how things happen in that particular court. Be sure to ask this Officer when your case will be heard. And, tell the Officer if you and the other party have or have not reached an agreement.

If this is a child support case, you will need to fill out a worksheet from the Child Support Guidelines. This worksheet will show what the Guidelines say the child support order should be. (If you don't have a worksheet, you may be able to get one from the court clerk).

Listen to the judge's or magistrate's instructions when he/she opens the court.

When your case is called, say your name for the court reporter. Be polite and respectful of the judge and the other side. If you have an agreement, present the agreement to the clerk. If you have not reached an agreement, you will speak before the other side in your case speaks since you made the motion to change the court order. Give your side of the story slowly and completely. Try to stay to the facts. The other side will have the right to ask you questions (cross-examination). State what you are seeking, for example, an increase in child support. State what was previously ordered and what has substantially changed. If this is a child support case, tell the judge how you calculated child support on the worksheet and the reason for the child support order to be raised or lowered. The judge will probably require that you be "sworn in" (take an oath to tell the truth) before you testify.

Be specific about how much more you want the other party to pay or how much less you are able to pay, and give the reasons why.

The other side will be allowed to present its case after you are finished presenting your case. You will have the right to cross-examine the other party and his/her witnesses, but your questions should relate only to what they testified about. Never argue with a witness. You also have a right to testify again to rebut what was said.

After the witnesses have testified, the judge may allow both sides to make a short argument (that is, briefly say why the order should be changed). You will probably be given the chance to speak first. Stay on the specific issues raised in your motion. The judge may lose patience if you go on too long.

At the end of the hearing, the judge may make a ruling "from the bench" (right then and there). Often, though, the judge will say, "I'll take the papers," which means a decision will be made later. In that case, the clerk will send you a copy of the court's decision which will have the judge's orders. If you do not hear from the court in a few days, call the clerk and ask about the case.

MY EX SAYS THEY HAVE NO JOB OR INCOME What can be done when your ex claims they have no job or source of income? This is important because this you will cause you to pay a higher percentage of the support based on both parties income together. There is something that can be done about this. Child support law guidelines have an “imputed income rule” that applies to those who have a support obligation but do not have a job or source of income.

The working non-custodial parent can then ask the court to evaluate the other person’s ability to work. After completing an employment evaluation and discovering that the custodial parent is capable of working the court can impute an income to that person based on their earning capacity from their previous job. Basically, if a non-working parent had a job prior to not working, that hourly rate of pay they had previously made will be said that they have the ability to make that same amount of income. As long as there are no physical or mental disabilities that would not allow that parent to work, the court expects a parent to find employment. This evaluation must be specifically requested at the time of the court case or by a separate motion.

SAFEGUARDING YOUR ASSETS If possible, don’t own anything. Your new spouse or parents or trusted advisor could own assets so that your ex will be discouraged from going after them.

Explore possibilities of setting up corporations or trusts to hold property. The trusts could be arranged to benefit your children.

PROVING CHILD SUPPORT PAYMENTS Ensure that all of your child support payments be paid through the circuit clerk of the court. The clerk maintains computerized records which will prevent your ex from “forgetting” you paid support. Invest in a “one-write” checking system that automatically creates a carbon copy entry onto the check register. The SAFEGUARD system is one of several available systems that works well. Keep track of all money spent on your children with ledger entries. ALWAYS pay by check!

The one-write system will also provide you a simple way to prove how you spend your money, an invaluable aid when litigating child support awards and preparing budgets for the court. You should have a column heading to correspond to each expense claimed on your financial statement. Save every check you write for child support or for items you buy for the children forever and keep a child support log on a monthly basis.

PREVENTING SEIZURE OF YOUR TAX

REFUND If you are found to be behind in child support, you can count on your tax refund being taken each year. The solution to this is to claim the maximum number of exemptions allowable, so that you are not overpaying your taxes (the only reason for a refund). See your employer to adjust your deductions with a W-4 form. If you are self-employed, calculate your quarterly payments carefully so as to eliminate overpayment without incurring underpayments penalties. Make sure your spouse also takes the maximum exemptions if you are filing a joint return.

PROTECTING YOUR BANK ACCOUNT FROM SEIZURE

If you are subject to a wage garnishment order for child support arrears,

Incorporating your business

your checking account can be seized at anytime, without notice

A DBA bank account will not help you, even if it is primarily held by your current spouse. The Child Support Enforcement people can and will levy the account if you owe any arrears. This can cause extreme hardship.

.

The only thing that will work is to incorporate your business and then have all income payments made to the corporation (business to business). The corporation would then have a Tax ID, and your SS# wouldn't figure in the picture, basically cutting CSEA out of the loop. This would give you absolute control over your own income.

FIGHTING OUT-OF-STATE SUPPORT ORDERS

The issue of child support cannot be decided if the issue of custody is raised. Custody must be determined first. Consider filing for custody if your ex is neglecting your children financially. If your ex is going to cause you to incur attorney fees, you might as well resolve all of your visitation and custody problems at the same court hearings and force her to pay for her attorney. Always file a counter-petition in response to any petition she files. The best defense is a good offense. Most out-of-state orders can be negotiated with your local State’s Attorney to a very low payment on nay arrearage. These local assistant State’s Attorneys or prosecutors are covered up with child support collection cases and will readily agree to low payments just to clear a case off the books. I have seen $30,000 in arrearages set up for repayment at $20 per month, after the father insisted that the full discovery process be completed before the hearing. Insist on your full legal rights to contest custody and support. The Federal Government encourages states to go after fathers by publishing collections hints. It is of note that nowhere does the government give advice on enforcing visitation despite statistics proving that when visitation is given, support is usually paid.

HANDLING ARREARS AND BACK CHILD SUPPORT OWED

There are two options for settling back child support owed arrears to a lowered amount.

1. Paying back support is best handled by making arrangements outside of court. The court is unconcerned with how back support owed is settled as long as both parties agree. Try to make a deal with the other parent for re-payment. These offers for settlement could be for a lesser amount than are owed. As long as the parent who is receiving support is not on welfare they can accept any amount they want. This applies even if they have requested the District Attorney to enforce the order. If an agreement is reached it must then be written into an order to the court. Then have the agreement entered into court as an agreed order and you can file this motion and the court and child support office will update their records to show the new balance for the arrears to the amount that was agreed to.

2. You can also apply for the state’s compromise of arrears program. This is a way of making a settlement offer to the state to reduce the total amount owed for back child support. This program can eliminate interest and penalties for back child support owed. To apply for this you must show that you were unable to make the child support payments and it is causing you undue financial hardship.

Here is some of the basis for request for settlement of child support arrearage: The obligor is requesting the expungement of state-owed child support arrears that accrued during the period from ___________ to ____________ because he/she was unable to work and had no income due to: _______ incarcerated _______ physically or mentally disabled _______ change in custody to obligor _______ reunited and living with mother and children _______ other extreme hardship resulting in significant reduction in income

The next page is the form you will use to file a motion for settlement of child support arrears.

PLAINTIFF’S NAME ) IN THE Plaintiff )

) CIRCUIT COURT FOR v. )

) _______________ COUNTY DEFENDANT’S NAME )

Defendant ) Court Case No.: ______________________

) Child Support Case No.:________________ )

STIPULATION OF SETTLEMENT/COMPROMISE OF

STATE-OWED ARREARAGE

The Defendant, on his/her own behalf, and the state of New Jersey, represented by the attorney for the ___________ County Office of Child Support Enforcement, hereby stipulate to the following:

1. That during the period from ____________ to _____________, the obligor

failed to pay all or part of his court-ordered child support obligation, thereby accruing a child support arrearage owed to the state of New Jersey in the amount of $_____________.

2. That the obligor’s failure to pay child support during the above period was due to __________________________________________________________________ __________________________________________________________________.

3. That the obligor has agreed as follows: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

In consideration of the above, in consideration of the obligor’s payment of the sum of $_______, which payment was made on ________________; the parties hereby agree as follows:

1. The Defendant’s child support arrears owed to the state of New Jersey that were incurred during the period from _________ to _________ in the amount of $____________ shall be expunged;

2. The obligor’s child support arrearage shall be adjusted to reflect a total arrearage owed as of ____________ (date) to the state of New Jersey in the amount of $__________, and owed to the Plaintiff in the amount of $_____________; and

3. Any arrears owed directly to the Plaintiff shall remain the responsibility of the Defendant.

___________________________________ ________________________ __________________________, Defendant Date

Address/Telephone #

_________________________________ _____________________ Support Enforcement Agent Date ______________ Office of Child Support Enforcement Address/Telephone # _______________________________ Attorney ____________________County Office of Child Support Enforcement Address Telephone #

CERTIFICATION OF CSEA I hereby certify that I have determined it to be in the best interests of the state of New Jersey and of the child(ren) in this case that the Defendant’s child support arrearage be settled and expunged as specifically described in the above Stipulation of Settlement.

____________________________________

Child Support Enforcement Administration

DISCOVERY

If your ex is attempting to increase your child support, you have a right to determine her financial condition through a process called discovery. To litigate without discovery is almost illegal. Anyone claiming child support must complete the time-consuming and expensive discovery process. Of course, it would be unethical to insist on discovery simply to harass your opponent.

Discovery tactics:

A. Depositions 1. In a deposition, the party is put under oath and asked questions to

determine what they are going to say in court. Depositions are expensive and time-consuming. You must pay attorneys and a court reporter. Often, the costs of depositions deter a party from pursuing claims.

2. If you are deposed, here are some helpful hints. I) Pay attention to your physical appearance. It is important that you make a good impression on the opposing counsel and the opposing party. you should dress as if you were actually going to court. You should be clean and wear nice pants and a white button-down collared shirt. II) Treat all people in the deposition room with respect. Do not be afraid of lawyers. III) Never state anything as a fact that you do not know. There is however, a distinction between a guess and an honest estimate. IIIV) Do not volunteer any facts not requested. V) Do not try to memorize your testimony. VI) Do not answer a question unless you have heard it and clearly understand it. Ask for the question to be repeated to think about your answer. VII) Answer all questions directly, giving concise answers to the questions and stop talking. VIII) If your attorney begins to speak, stop whatever answer you may be giving and allow him or her to make the statement. IX) Do not let the opposing attorney get you angry or excited. X) Never joke in a deposition, and after the deposition is over do not chat with the opponent or her attorney. B. Interrogatories

Interrogatories are written questions submitted to a party that must be answered and returned. They are useful to keep the other party from changing their story or surprising you in court

C. Requests to Admit These are sent to your ex to narrow the issues so you don’t have to prove everything in court, saving a lot of time and legal fees.

D. Requests to Produce These force the other side to produce records you need in court or records they intend to use against you.

UNWED FATHERS Unwed fathers are often held liable for birth and maternity expenses and usually held liable for payment of child support as if you were married.

Some states, however have attempted to limit unwed fathers rights while still requiring them to pay child support. It is imperative that as soon as a child is born, the father files a petition to determine paternity to establish future father’s rights, even if you are currently living with the mother. Remember, there is no presumption that the mother will get custody if you chose to seek custody.

WITHHOLDING ORDERS

If child support is awarded, most states now require an order of withholding be sent to your employer. Your employer will send the child support automatically to the court clerk. If you are laid off and child support is temporarily interrupted, you must either pay the payments yourself or immediately file a petition to modify (lower) child support. You will be granted your petition, often with the family portion of any unemployment benefits being designated as full child support. Of course, you must pay that amount each month and keep detailed records and receipts.

If you don’t get your child support lowered by the court, you can count on having to pay all back payments up to date when you get back to work. An agreement between you and your ex is meaningless. You must have a written and signed court order lowering your support.

WASTE OF CHILD SUPPORT MONEY No one denies that a father has a duty to support his children. However, laws pushed onto timid legislators by militant feminist have created an atmosphere of coercion requiring the father to pay child support without any requirement for the mother to account how the child support money is spent and without protecting the father’s visitation rights. If the legislators continue to refuse to provide accountability for spending of child support money or to enforce visitation rights, there is no alternative left to fathers except to minimize or avoid (to the extent legally possible) payment of unreasonable child support. By keeping the ordered child support paid to ex spouse to a minimum, the paying spouse can make direct purchases of food, clothing and services for his children and for children alone. This is the only way fathers currently can be sure their money is being spent on their children. Drug abuse is a growing phenomenon among single parents. Increasing amounts of child support money are being spent on drugs while children go hungry. This problem will only worsen until legislators step in to protect the children from wasting of child support. Often, child support money pays payments on an extravagant house or cars, yet the children own no equity in the property purchased with child support money. This must be changed! If child support is paying for property, the children’s names should be on the deed to the house or title to the car. Child support money is often used to pay lawyers for litigation to reduce the father’s visitation or involvement with his child. The child’s money is being spent to adversely affect the child’s best interests, which usually defined to be the maximum involvement of both parents in the child’s life. Judges should be ever alert for this abuse and waste of children’s’ assets. The solution to these problems is legal consistency. Current law states that when a guardian for a mentally incompetent person is appointed, that guardian must file a yearly report with the court detailing how every dime is spent and extraordinary expenses must be approved before the money is spent. The money is held in trust for the disabled person. Child support should also be considered held in trust for use only to benefit the children, not the ex spouse, and a regular accounting to a court of money spent is a reasonable method of protecting children’s welfare. Since it is unlikely that legislators will have the guts to stand up to the organized militant feminists, it is incumbent on the person paying support to minimize the money he must pay directly to the ex.

CONCLUSION The foregoing ideas will enable you to fight unreasonable demands by litigating the support question to the same extent as any other issues litigated in court.

You are entitled to fully use the legal system and all of its procedures and protections.

Your ex is using the system against you. You are entitled to use the system safeguards and due process safeguards to oppose her in any ethical way possible.

By fighting awards in unreasonable child support, often given without any accounting protection to make sure the money is spent on the children, a father in this way can ensure that at least some of his money is spent directly on his children’s best interests.

To prevail however, you will probably need competent, aggressive legal counsel. If your ex has an attorney and you don’t you will almost certainly fail. However, just making litigation an unpleasant and expensive battle may prevent the ex coming back the next time for more money.