One of my most articulate readers feels that the child support obligations for high income earners is excessive or confiscatory. He writes:
“In a high-income child support case, the South Dakota Supreme Court ruled on April 25, 2007 that the maximum guideline for payments should not be exceeded through extrapolation.
“The state’s child support table currently stops at $10,000 of net income monthly while the father earns $23,292. The mother requested that the child support formula be applied to the father’s entire net income. The court ruled for the father, saying that without proof that the extra money is for the child’s actual needs, child support should not be increased above the $10,000 net income maximum.
“The case of McKittrick v. McKittrick can be accessed at www.sdjudicial.com. Click Supreme Court, Opinions.â€Â
The McKittrick case is discussed in the AP article below.
Court: $3,000 Child Support Not Justified
Associated Press
Friday, April 27, 2007
By: Joe Kafka
PIERRE  The current maximum guideline for child-support payments should not be exceeded unless it can be shown that a child’s actual needs and standard of living require it, the state Supreme Court ruled Thursday.
The decision comes in a Hughes County divorce case in which Lonnie McKittrick makes roughly 10 times as much as his ex-wife, Wanda McKittrick.
Lonnie McKittrick, whose gross income is $377,000 a year, is the insurance manager in Fischer, Rounds and Associates, the insurance and real estate firm partially owned by Gov. Mike Rounds.
McKittrick’s former wife earns about $38,000 annually from Oahe Child Development Center. She also works part-time at Mesaba Aviation.
The couple married in 1988 and divorced in 2004. They have one child, Parker, 14, and the mother has custody.
The boy’s father agreed at the time of the divorce to pay $1,000 in monthly child support, $1,000 in monthly alimony for 15 years and most of the child’s extracurricular activity expenses. A college fund also was established by the father.
Wanda McKittrick requested increased child support last year after disputes over payment of travel and lodging expenses to attend one of Parker’s out-of-town athletic events and expenses that had to do with their son’s dog.
After reviewing their incomes, a child-support referee for the court system decided that the father should provide $3,006 in monthly payments for the care of his son. After taxes and a $927 monthly retirement deposit, the man’s net take-home pay is $20,868 monthly.
Although the state child-support guidelines have a top net income standard of $10,000 monthly, the referee decided that the father’s support payments should be based on a calculation of more than twice the standard income ceiling. Circuit Judge Max Gors agreed, and McKittrick filed an appeal with the state Supreme Court.
McKittrick’s child-support should not have been increased by extrapolating his income beyond the $10,000 monthly standard without proof that the extra money is needed for his son’s actual needs and standard of living, the justices said in their unanimous decision.
When the state Child Support Commission recommended the $10,000 monthly income ceiling in 1997 for calculating payments owed by noncustodial parents, the panel said economic studies had found that the percentage of income spent on rearing children decreases as income increases.
The commission, which meets every four years, therefore concluded that support payments based on income of more than $10,000 a month should be based on need
and standard of living, the justices noted.
“The commission reviewed the schedule in 2000 and 2005 but recommended no change to the upper level of the schedule,†wrote Justice Judith Meierhenry.
“Studies show that the needs of a child do not increase at the same rate that family income increases once the monthly net income reached $10,000,†she continued.
Wanda McKittrick presented no evidence to show that her son’s needs are not being met or standard of living has changed, the high court stated.
In fact, both parents agreed there had been no diminishment in their son’s lifestyle since the divorce, the justices added, reversing the father’s $3,006 monthly support payments.
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