Child support calculations in North Carolina are based primarily on the income of each parent. In making an initial child support order after an absolute divorce or separation, the court will generally require a financial disclosure from each parent. This information, along with other factors, will be used to calculate which parent pays support and the amount of child support payments. Similarly, if one parent requests a child support modification, the court may again require a financial disclosure from each parent.
Failing to disclose all necessary information can affect the amount of support going to the child. After a contentious divorce, one or both parents may not want to give the other a full accounting of their financial situation. However, hiding financial assets or misrepresenting a financial disclosure form to the court can result in penalties.
If you have any questions about reporting income and assets for child support calculation in North Carolina or believe the other parent is hiding money, contact North Carolina family law attorneys at Caulder & Valentine Law Firm, PLLC today for assistance.
Child Support Financial Disclosures in North Carolina
Under North Carolina family court rules, each party in a child support action has to provide initial disclosures to the other parties. The disclosures required depend on whether the North Carolina Child Support Guidelines apply, or if there is some deviation from the standard guidelines. Where the child support guidelines apply, disclosures required include:
- Documents reflecting income from any and all sources for the last two years preceding the filing of the claim;
- Income tax returns for the last two years, including W-2, all schedules, and attachments;
- Pay stubs for the last three months;
- Documents reflecting expenses for current childcare and payments made;
- Documents reflecting expenses for current healthcare insurance and payments made;
- Documents reflecting expenses for uninsured medical expenses paid;
- Documents reflecting any extraordinary expenses;
- Documents regarding any obligation for child support for any children for whom support is not sought; and
- Documents reflecting ownership of stock or stock options.
Additional documentation may be required where there is a deviation from the North Carolina Child Support Guidelines, there is an unincorporated separation agreement, the guidelines do not apply because of high incomes, or the parent is self-employed. Additional disclosures may include:
- Bank statements for the last six months, including canceled checks, check register, online statements, and evidence of checks paid;
- Credit card statements for the last six months for any credit card for which you are an authorized user;
- List of all financial accounts, including account number, name of the account holder, institution, address and phone number, in which you have or had any interest in the last 12 months;
- Business tax returns for the past two years, including K-1 and all attachments and schedules;
- Business bank statements, including canceled checks, check register, online statements, and evidence of checks paid for the last six months;
- Credit card statements used for business expenses for the last six months for any credit card for which you are an authorized user; and
- Financial Affidavit.
Failing to Report All Income and Assets
A parent may not want to report all income and assets for calculating child support. This may involve not wanting to report a source of income the other parent does not know about, wanting to keep financial information private, or believing that the other parent is also hiding assets. However, there may be penalties associated with failing to report all assets and income or making misleading statements on a financial affidavit.
The judge may have a number of options for penalties when one parent is discovered to be hiding assets. Making false statements or failing to report required disclosures can result in contempt of court charges, awarding attorney fees to the other party, or other financial penalties.
Child Support Representation in Shelby
At Caulder & Valentine Law Firm, PLLC, we have helped represent parents in child custody hearings and make sure the children get the proper child support. If you have any questions about child support modifications or making financial disclosures for child support calculations in North Carolina, contact us today for a consultation.