The bill's implementation is expected to have a notable impact on child support determinations in Maryland. By redefining 'actual income' to incorporate employer-paid taxes or hypothetical taxes, it may elevate the income assessment for parents, thereby raising child support payments. This adjustment could enhance the financial support received by custodial parents, helping to ensure that children have adequate resources. Conversely, non-custodial parents might feel the financial strain due to increased obligations, which may lead to disputes concerning their ability to pay.
Summary
Senate Bill 390, titled 'Family Law - Child Support - Actual Income', proposes to modify the definition of 'actual income' in the context of child support calculations. Specifically, the bill aims to include taxes paid by a parent's employer or, if the income is non-taxable, the taxes that would be due if the income were taxable. This change is significant as it potentially increases the income amount considered for child support, which could affect the financial obligations of parents in custody arrangements.
Contention
There may be points of contention surrounding SB390, particularly regarding its fairness and the implications for parents with variable incomes. Critics of such changes might argue that including hypothetical tax obligations creates an inaccurate portrayal of a parent’s financial situation, and could unintentionally penalize lower-income earners who may not have the capacity to meet these new requirements. Supporters likely emphasize the need to ensure that child support reflects the true economic capacity of parents, ensuring children receive the necessary support regardless of the income structures of their parents.