Relating to calculation of the net resources of a person ordered to pay child support.
The amendments introduced by SB2444 apply specifically to proceedings involving the establishment or modification of child support obligations. This means that any such proceedings filed on or after the effective date will be subject to these new guidelines. Consequently, the bill seeks to create a more standardized approach in determining what constitutes net resources for the purpose of fair child support calculations, which could lead to varying impacts on obligors based on their individual financial circumstances.
SB2444 proposes amendments to the Family Code concerning the calculation of net resources for individuals ordered to pay child support. The bill outlines specific deductions that are to be accounted for, including several items such as social security taxes, federal income tax, state income tax, union dues, and expenses related to health insurance for the child. A notable addition in the bill is the provision for nondiscretionary retirement plan contributions, which mandates that if an obligor does not pay social security taxes, these contributions must be deducted from their income when calculating child support obligations.
There are potential points of contention surrounding SB2444, particularly regarding its emphasis on deducting nondiscretionary retirement contributions. Some stakeholders may argue that this inclusion could disadvantage certain obligors who are required to contribute to retirement plans and might face challenges in meeting their child support obligations as a result. Conversely, supporters may contend that ensuring such deductions are recognized is a step towards fairer calculations that acknowledge the economic realities faced by the individuals subject to these obligations.