Can Child Support Be Modified After a Significant Change in Income in Arkansas?
Yes. In Arkansas, you can ask the court to modify child support when either parent's income changes significantly. If either parent's gross income increases or decreases by at least 20%, Arkansas law generally considers that enough of a change to request a child support modification.
A substantial raise, job loss, reduction in hours, or other major income change can affect whether your existing child support order still reflects your family's financial circumstances. However, your child support amount does not automatically change when your income does.
At Vernetti Law in Bentonville, Arkansas, we represent parents in child support and other family law matters. We can review your existing order and financial circumstances and help you seek or respond to a modification. Contact us today to schedule a consultation.
When Can an Income Change Justify a Child Support Modification?
As mentioned earlier, Arkansas uses a 20% change in either parent's gross income as the threshold for an income-based modification request. This rule applies whether income goes up or down and whether the parent pays or receives support.
For example, if your gross monthly income increases from $4,000 to $5,000, that is a 25% increase and meets the threshold. A decrease from $5,000 to $4,000 is exactly 20% and also meets it.
Meeting the threshold lets you request a modification; it doesn't determine the new payment. Depending on the recalculation, support could increase, decrease, or remain the same.
How Child Support Is Recalculated After an Income Change
Arkansas uses an Income Shares Model that considers both parents' current incomes. The court generally follows these steps:
Determine each parent's income available for child support.
Add the parents' incomes together.
Use the Family Support Chart to find the basic support obligation for that combined income and the number of children.
Determine what percentage of the combined income each parent earns.
Assign each parent that percentage of the basic support obligation.
Account for applicable expenses, such as the child's health insurance premiums, extraordinary medical expenses, and work-related child care.
For example, suppose one parent has $6,000 in monthly income available for support and the other has $4,000. Together, they have $10,000 in monthly income. The first parent earns 60% of that amount, while the second earns 40%. After identifying the basic support obligation from the Family Support Chart, the court generally allocates that obligation between the parents according to those percentages before applying other adjustments required by the guidelines.
The amount one parent ultimately pays also depends on the applicable parenting-time arrangement and any adjustments or deviations allowed under the guidelines. That is why a 20% change in income doesn't necessarily produce the same percentage change in child support.
We can review the income and expenses involved in your case and explain how the Arkansas guidelines may affect a requested child support modification.
What Counts as Income for Arkansas Child Support?
Your income for child support purposes can include more than wages from a regular paycheck. Arkansas's Child Support Guidelines define income broadly. Depending on your circumstances, the calculation may involve salaries or wages, commissions, bonuses, self-employment income, pensions, or other income covered by the guidelines.
Determining income can become more complicated if you are self-employed or own a business. The court may review your business receipts and expenses to determine the income available for child support. An expense you can deduct for tax purposes may not qualify as a deduction when the court calculates child support.
Your financial records can therefore play an important role, especially when you and the other parent disagree about income. Tax returns, pay records, business records, and documentation of other income can help establish the financial figures used in the calculation.
Does Losing Your Job Automatically Reduce Child Support?
No. If you lose your job or start earning less, you remain responsible for the amount in your existing order unless you obtain a modification.
The reason for your reduced earnings can matter. Arkansas law allows the court to consider your earning capacity if you are unemployed or underemployed. Depending on the circumstances, the court may attribute income to you rather than base support solely on what you currently earn.
The law separately addresses incarceration. If the statutory requirements apply, the court cannot treat incarceration for at least 180 days as voluntary unemployment when determining a reasonable amount of child support. Incarceration, however, does not by itself change an existing support order.
How to Request a Child Support Modification
If the Office of Child Support Enforcement (OCSE) handles your child support case, you can ask the agency to review your support amount. You may request a review once every three years or when your circumstances meet the applicable income-change threshold. A significant change in medical support can also provide grounds for a review.
You can also hire an attorney to seek a modification through the court. If your request involves a change in income, gather records documenting your current financial situation, such as recent pay information, tax returns, or relevant business records.
Until your order changes, continue following its payment requirements. An informal agreement with the other parent does not replace the existing court order. Our Arkansas family law attorneys can review your order and financial records and represent you in pursuing or responding to a modification.
Why the Timing of Your Modification Request Matters
The date you request a modification can affect how much you ultimately owe or receive. Arkansas law generally makes an income-based modification effective on the date the other party receives service of the file-marked notice of the motion seeking an increase or decrease, unless the court orders otherwise.
For example, if you receive a substantial pay cut in January but wait several months to seek a lower support amount, the income change itself generally does not make a later modification effective as of January.
If you pay less than the amount ordered in the meantime, unpaid support can accumulate. Acting promptly after a substantial income change can therefore have important financial consequences. We can evaluate your circumstances and help you present the necessary financial information.
Discuss a Child Support Modification With Vernetti Law
A significant change in income can justify reviewing an Arkansas child support order. Whether the payment ultimately changes depends on the parents' current financial circumstances and the calculation required under Arkansas law.
At Vernetti Law in Bentonville, Arkansas, we serve clients in Bentonville and throughout Benton County and Washington County. We can review your current child support order and financial records, explain your options, and represent you when you seek or respond to a modification. Contact us today to discuss your child support matter.