Understanding the Tennessee Child Support Guidelines is the first step toward stability.
For parents navigating separation or divorce, few topics generate as much anxiety and confusion as child support. It’s more than just a number; it represents the financial foundation necessary to provide a stable, supportive environment for your children. When families in Middle Tennessee ask us, “How is child support calculated?” we explain that the process is not arbitrary. Instead, it follows a structured, mandatory formula set forth by the Tennessee Child Support Guidelines. Understanding this formula is critical, as it provides transparency and predictability, ensuring the child’s best interests remain the priority.
The Foundation: Tennessee’s Income Shares Model
Tennessee uses the Income Shares Model to determine child support. This model is based on the premise that a child should receive the same proportion of parental income they would have received if the parents lived together. The Guidelines calculate the total amount of support that both parents together would normally contribute—this is the “Basic Child Support Obligation” (BCSO). This BCSO is then divided or weighed proportionally between the parents based on their respective incomes.
The calculation is a meticulous, multi-step process, demanding accuracy and attention to detail at every stage. Our Nashville divorce lawyers’ work involves rigorously gathering and verifying all necessary financial documentation to ensure the resulting calculation is fair and legally sound. This commitment to detail is crucial for establishing long term financial stability and demonstrating the trustworthiness of the resulting order.
The Four Steps to the Final Child Support Order
Calculating the final support amount involves four primary steps, which are completed using the state’s mandatory Child Support Worksheet:
1. Determining Adjusted Gross Income (AGI)
The foundational step is accurately establishing the Adjusted Gross Income (AGI) for both the Primary Residential Parent (PRP) and the Alternate Residential Parent (ARP). This requires looking beyond a simple paycheck. Therefore, this calculation is made after a Permanent Parenting Plan is created. AGI includes income from nearly all sources, whether earned or unearned, such as wages, salaries, self-employment earnings, commissions, bonuses, pension or retirement income, and investment returns. Certain pre-existing legal obligations, like support paid for other qualified children, are subtracted from the gross income to reach the AGI. For parents who are self-employed or have complex corporate structures, calculating the true AGI requires specialized financial understanding to ensure all income streams are fairly represented. Even gift income is factored into the definition of income as it pertains to child support calculations. It is important to understand that income for child support purposes is not based on or bound by what the IRS defines as income. Our experience in reviewing and validating complex financial records provides the authority needed to properly calculate this critical starting figure.
2. Adjusting for Parenting Time
A crucial factor that significantly adjusts the final calculation is the amount of time each parent spends with the children, as well as how many children are subject to the obligation or order. The law recognizes that the parent who has a higher number of “days of care” per year directly incurs more day-to-day expenses. The Guidelines provide a credit to the Alternate Residential Parent (ARP) based on the number of days of care exercised. This credit reduces the final support obligation, reflecting the shared financial responsibility during parenting time. Because the number of “days of care” directly impacts the final support amount, it is essential that the finalized Permanent Parenting Plan accurately reflects the actual time-sharing schedule. A “day” is defined as more than twelve consecutive hours in a twenty-four hour period, requiring a precise calculation that our firm is skilled in making.
3. Calculating the Basic Child Support Obligation (BCSO)
Once the AGI is calculated for both parents, these two figures are added together to determine the Total Combined AGI. The state uses a mandated economic schedule, a table published by the Department of Human Services, which correlates the Combined AGI and the number of children to a specific dollar amount: the BCSO. This figure represents the estimated amount an average family with that combined income would spend on their children monthly.
4. Allocating the Obligation and Factoring in Add-ons
The BCSO is divided between the parents based on their proportional share of the Total Combined AGI. For example, if Parent A earns 65% of the combined AGI, they are responsible for 65% of the BCSO. Next, the Guidelines factor in necessary, recurring expenses colloquially referred to as “Add-ons,” including the cost of maintaining health insurance for the subject children, recurring medical expenses for the children, and reasonable work-related childcare costs for the children. These costs are added to the BCSO and also allocated between the parents based on their income share (percentage of income). The parent who actually pays for the insurance, medical costs, or childcare typically receives a credit for the other parent’s allocated share of that cost.
Seeking a Modification: The 15% Rule
It is important to remember that child support is not always static. Life circumstances change, and the Guidelines allow for a Modification of the support order if there is a significant variance. The significant variance is not based on changes in income or any other inputs on the child support worksheet, but is instead based on what the newly calculated child support obligation is compared to the existing child support obligation.
A parent can petition the court for a modification if a recalculation under the current Guidelines results in a change of at least 15% from the existing ordered child support obligation. An example would be, if the current child support order is $1,000, then the recalculated amount must change by 15%, or in this example, $150. That means if the newly calculated support does not increase to at least $1,150 or decrease to at least $850, there is not a significant variance and child support cannot be modified.
This expertise-backed rule ensures stability while allowing for necessary adjustments. Common reasons for seeking a modification include:
- A substantial increase or decrease in either parent’s income.
- A significant, permanent change in the cost of health insurance or work-related childcare.
- A major alteration to the parenting schedule and number of days of care.
Establishing the validity of a change that meets this 15% threshold requires the experience of legal professionals who can accurately present the financial and legal justification to the court, especially when income or other inputs are in dispute or are not simple enough to calculate otherwise.
The system for calculating child support in Tennessee is designed to be fair, predictable, and focused on the child’s financial needs. By working with knowledgeable legal counsel who understands the intricacies of the Income Shares Model and all relevant legal precedents, you can move forward with confidence and clarity. Rogers, Shea & Spanos stands ready to guide you through this complex process and ensure your child’s financial future is secure.