Charlotte Divorce Lawyer Blog

Imputation of Income in Calculation of Child Support Considered by North Carolina Court of Appeals

Published on: February 16, 2010 | On behalf of Arnold & Smith, PLLC

The majority of child support cases in Charlotte are determined using the North Carolina child support guidelines. This is essentially a formula which takes into account a number of basic factors in determining the appropriate amount of child support. One of the most important variables in the child support formula is the income of both of the parents. So, what happens when one of the parents intentionally reduces their income? The trial court may impute income to that parent for purposes of calculating child support.

This issue was recently before the North Carolina Court of Appeals in the case of Thomas vs. Thomas. The trial court imputed $4,000.00 per month of income to the father based upon his actual income (earning $975 per month working part time) in relation to his expenses and the fact that he was living off of, and significantly depleting, his investments in order to maintain his standard of living. The trial court found that the father would be unable to support himself and the children if his investments continued to decrease and that the father acted willfully and in bad faith in refusing to seek “gainful employment” to make up for his investment losses. The Court of Appeals upheld the trial court’s imputation of income to the father as proper.

Self Support Reserve Addressed in Child Support Calculation by North Carolina Court of Appeals

Published on: February 14, 2010 | On behalf of Arnold & Smith, PLLC

The North Carolina Child Support Guidelines provide for a self support reserve. Meaning that, for parents who have an income below a certain threshhold, the formula works differently. On the chart of incomes in the child support guidelines, those with incomes below that threshhold will fall into the “shaded area.” of the chart. Under the guidelines, absent a deviation, the lowest monthly child support obligation that a parent can have is $50 per month.

In the recently decided case of Allen vs. Allen, the North Carolina Court of Appeals addressed a number of issues. One of the issues addressed in this case was the proper application of the self support reserve. In this case, the mother was ordered by the trial court to contribute toward the children’s private school tuition.

Ultimately, the North Carolina Court of Appeals upheld the trial court’s ruling and held that, while the mother’s income did fall within the shaded area and child care and health insurance premiums are therefore not included in the calculation, the mother’s obligation for the children’s extraordinary expenses is unaffected by her low income.

Modification of Alimony Addressed by North Carolina Court of Appeals

Published on: February 10, 2010 | On behalf of Arnold & Smith, PLLC

On September 19, 2009 the North Carolina Court of Appeals issued an unpublished opinion in Underwood vs. Underwood. This case dealt with modification of alimony. A Consent Order was entered resolving the parties’ claims for alimony and equitable distribution. The Consent Order provided that the alimony payments would cease upon the death of either party or the remarriage of the wife. The Consent Order made no mention of termination of alimony payments upon cohabitation.

Seven years later the husband filed a motion to modify or terminate the alimony payments based upon the wife’s cohabitation, the husband’s decrease in income and the wife’s increase in income. The trial court allowed the modification and the wife appealed.

The wife’s position was that the Consent Order was not modifiable because the alimony provisions were integrated with the property division terms. The Court of Appeals agreed, noting that the test is not whether the payments are labled as “alimony” but rather whether the support payments and the property settlement provisions constitute reciprocal consideration for each other. The Consent Order at issue in this case contained language expressly integrating those terms. So, the Court ruled that the alimony provisions of the Consent Order were not modifiable and ruled in the wife’s favor.

International Adoption in the Wake of the Tragedy in Haiti

Published on: February 6, 2010 | On behalf of Arnold & Smith, PLLC

In the aftermath of the tragic earthquake that ravaged the nation of Haiti this month, many Americans are seeking information on how they can aid in the international adoption of many newly orphaned Haitian children. For more information on the adoption process in the wake of Haitian relief efforts, visit the US Department of State’s website.

Several hundred Haitian orphans have already been brought into the Unites States in conjunction with current relief efforts. At present, new adoption applications for Haitian orphans are not being processed. Because the Haitian government must identify and register children who were orphaned by the earthquake, more time is needed to make these determinations and subsequent identifications. Inter-country adoption cannot take place during the current emergency phase, as the Haitian government has legitimate concerns with protecting their children from illegal adoptions, abduction, and child-trafficking.

Several hundred US families who were already advancing in the adoption process before the earthquake are being allowed to complete their adoptions. Prior to the earthquake, the adoption process for Haitian children took over two years, but now it is unclear how long future adoptions will take.

Does Charlotte have a High Rate of Divorce Cases?

Published on: February 3, 2010 | On behalf of Arnold & Smith, PLLC

According to a recent report from divorce360.com, Americans who live in the South are much more likely to get divorced than residents of the Northeast. This study, conducted by the Barna Group, reports that 27% of people who were married in the South get divorced, as compared to 19% of those in the Northeast. The Midwest also boasts a comparable 27% divorce rate, closely followed by a 26% rate in the West.

Although the results of this study may seem atypical to those Southerners who generally consider themselves to be more traditionally conservative, the National Marriage Project at the University of Virginia has an explanation. People who live in one area and do not move or relocate are much more likely to stay married over people who move, such as residents of the Midwest, the West, and the South.

One wonders whether there might be other explanations, or at least other factors, involved in these elevated divorce rates other than migratory trends. Does it make a difference at what age couples are married? Perhaps employment status or work conditions are impacting the divorce rates. Similarly, maybe there is an economic element which correlates to the higher divorce rates which relates to the economic and financial strength of the area. Family history and demographic trends may also play roles in the equation.

Charlotte Divorce Cases are Affected by Changing Gender Roles

Published on: January 30, 2010 | On behalf of Arnold & Smith, PLLC

As previously discussed here (In the Battle of the Fit Parents, Breadwinning Moms are Losing Child Custody , “Deadbeat Moms” in Charlotte, North Carolina? What can lawyers do? and Men Marrying (and Divorcing) Wealthier Women?), American households are experiencing a gender role reversal with regard to levels of marital income.

This so called “rise of wives” has sparked a debate regarding whether financially successful women are a threat to traditional marriage roles. However, as recently reported by The New York Times, evidence shows that the shift within marriages has had a positive effect on marital stability and has contributed to lower divorce rates.

Statistics indicate that the more financial independence and education a woman attains, the more likely she is to stay married, as the end result is a marriage that is more balanced and equitable to both spouses.

Mecklenburg County Working to Take Over Child Support Enforcement

Published on: January 23, 2010 | On behalf of Arnold & Smith, PLLC

As we have discussed here previously (Mecklenburg County Child Support Cases Affected? Some North Carolina Counties Scrambling for Planned Child Support Enforcement Takeover), North Carolina will no longer bear the responsibility for enforcing child support obligations. Mecklenburg County is one of the counties which currently relies on the state for child support enforcement. The Charlotte Observer reports that Mecklenburg County is evaluating various options for taking over the responsibility for enforcement of its child support cases. Starting July 1, 2010 Mecklenburg County and 27 other counties must take over the enforcement of child support payments for the cases pending in their respective counties.

The issue comes up again for the County commissioners again on Wednesday. Thus far, the evaluations have focused primarily on whether to privatize the service. The lowest bid thus far from a private contractor was $600,000.00. The cost for implementing the program utilizing a consultant and county staff would cost approximatley $1.5 million dollars. Some appear to be in favor of hiring a private company to handle the child support enforcement for at least the first two years while others question whether a private company can be as effective as the current system.

Men Marrying (and Divorcing) Wealthier Women?

Published on: January 19, 2010 | On behalf of Arnold & Smith, PLLC

As reported by CNNMoney.com according to a recent study released by the Pew Research Center, the traditional financial roles in American homes are changing. This study of married households suggests that 22% of men were making less money than their wives in 2007.

Comparatively, only 4% of men made less money than their wives in 1970. The report largely attributes this dramatic shift in marital income to a similar shift in education patterns. More women than ever before are pursuing an education in order to work outside the home.

A recent New York Times’ article discussed this new role reversal and its effect on modern marriages and the selection of marriage partners.

Grappling with Bankruptcies in Divorce

Published on: January 17, 2010 | On behalf of Arnold & Smith, PLLC

According to the Charlotte Observer and the Associated Press, bankruptcy filings in 2009 numbered 1.4 million and are up 32% nationwide.

These tough economic times cannot help but make divorce cases, which can be very difficult when times are good, all the more difficult to manage, settle and take to trial. When real estate prices were up and properties could be liquidated easily,

it was often just a matter of deciding how much of the equity each spouse would receive. Times have changed.

Child Support Modification during this Recession

Published on: January 15, 2010 | On behalf of Arnold & Smith, PLLC

Although families are certainly feeling the impact of a recent downward turn in the economy, nationwide trends indicate that those parents who are paying child support are being hit the hardest. In most cases in North Carolina, child support is calculated using a formula. One of the most important variables in the calculation is the income of each of the parents. Because the amount of support a non-custodial parent is required to pay is usually based on his or her income, a nationwide 10% unemployment rate has made it a near impossibility for many supporting parents to meet their children’s needs.

In North Carolina, child support orders are never final. Child custody and child support orders can always be modified in the case of a substantial change in circumstances affecting the wellbeing of the child – this can include changes in the paying parent’s financial situation. Often, existing child support orders can be modified when a substantial change in circumstances has occurred that renders the non-custodial parent unable to continue to pay the original amount owed. If a parent voluntarily modifies his or her earning capacity, such as in the case of taking a lower paying job, courts are sometimes hesitant to modify child support obligations. However, in the case of a parent who finds his or herself suddenly unemployed and are seeking new employment in good faith, child support obligations can often be modified.