Irina Anissimova, CPA, CFF
|Posted on August 24, 2015 at 8:30 PM|
Child support payors (mostly fathers in my experience) often defend their desire to decrease or eliminate payments arguing that the money is not spent on the children's needs alone. This is an erroneous line of reasoning at best and a disingenuous one at worst.
Yes, the payment may be higher than the combined expenses on children's food, clothes and entertainment. But spending on children does not end with these items. The biggest overlooked ingredient is housing cost.
A child needs a place to live and an opportunity to acquire at least some education. Housing costs in large part depend on the quality of the respective school district. They are also influenced by the prevailing income distribution in the area. In places like Silicon Valley where high salaries paid by hi-tech industry drive housing costs, lodging can easily consume more than 40% of one's income and there is no discount for single parents with children.
No, in most cases I see child support is NOT too high, it is more likely to be too low.