Comparing noncustodial and custodial parent income Sample Clauses

Comparing noncustodial and custodial parent income. The simulation results discussed above show that application of an SSR, especially if there is no catch-up provision, can substantially increase the resources of low-income noncustodial fathers and reduce the proportion for whom payment of their child support obligations would reduce their income to below the federal poverty level. A variety of normative and practical issues underlie judgments regarding appropriate contributions of noncustodial fathers to their children. But, in weighing the tradeoffs, it is important to understand who bears the cost of lower child support orders. In particular, lower child support orders for low-income noncustodial fathers typically mean less child support available to custodial mothers and children.8 Especially if poverty alleviation or equalizing the incomes of custodial and noncustodial parents is a goal of child support policy, it is important to understand whether the improvements to noncustodial parent economic well-being come at the expense of low-income custodial parents and children. Table 4 shows the simulated impact of alternative approaches to the guidelines for fathers, and for mothers and children. Across all fathers, we see that median income after paying support is $2,007 under current guidelines without the adjustment, and $2,227 under the SSR with no catch-up provision, as was also shown on Table 3. Thus, median net income increases by $220 from the SSR with no catch-up. Considering the custodial mothers associated with these noncustodial fathers, median income is $1,774 under the Wisconsin guidelines with no 8While there is some evidence that noncustodial parents pay a higher proportion of lower orders (i.e. that compliance may increase as burden declines), child support payments generally increase with orders (Xxxxxxx, Xxxxxx, & Xxxxx, 2019). After child support paid Before child support paid Wisconsin guidelines, no adjustment Low-Income Adjustment Self-support reserve #1: 60% of income above FPL up to standard guideline amount Self-support reserve #2: 17% of income above FPL Father’s mean income $3,025 $2,366 $2,373 $2,394 $2,544 Father’s median income 2,542 2,007 2,013 2,030 2,227 Percentage below FPL 26.0% 30.7% 30.3% 29.2% 27.7% Fathers with zero income 7.5 11.1 10.6 9.3 8.5 Fathers with income below 50% FPL 11.1 11.2 11.3 11.5 11.2 Fathers with income between 50% FPL and 100% FPL 7.5 8.4 8.4 8.4 7.9 Fathers with income between 100% FPL and 200% FPL 14.5% 18.7% 19.0% 19.7% 17.3% Fathers with incom...