Nebraska Child Support Guidelines A.        Introduction. The main principle behind these guidelines is to recognize the equal duty of both parents to contribute to the support of their children in proportion to their respective net incomes. B.        Temporary and Permanent Support. The guidelines are intended to be used for both temporary and permanent support determinations. C.        Rebuttable Presumption. The child support guidelines shall be applied as a rebuttable presumption. All orders for child support obligations shall be established in accordance with the provisions of the guidelines unless the court finds that one or both parties have produced sufficient evidence to rebut the presumption that the guidelines should be applied. All stipulated agreements for child support must be reviewed against the guidelines and, if a deviation exists and is approved by the court, specific findings giving the reason for the deviation must be made. Findings must state the amount of support that would have been required under the guidelines and include a justification of why the order varies from the guidelines. Deviations must take into consideration the best interests of the child. In the event of a deviation, the reason for the deviation shall be contained in the findings portion of the decree or order; or worksheet 5 should be completed by the court and filed in the court file. Deviations from the guidelines are permissible under the following circumstances: 1.         When there are extraordinary medical costs of either parent or child; 2.         When special needs of a disabled child exist; 3.         If total net income exceeds $10,000 monthly, child support for amounts in excess of $10,000 monthly may be more but shall not be less than the amount which would be computed using the $10,000 monthly income unless other permissible deviations exist; 4.          For juveniles placed in foster care; or 5.          Whenever the application of the guidelines in an individual case would be unjust or inappropriate. All orders for child support, including modifications, must include a basic income and support calculation worksheet 1, and if used, worksheet 2 or worksheet 3. Paragraph C amended Dec. 23, 1992; Paragraph C amended effective Jan. 1, 1996. D. Total Monthly Income. This is income of both parties derived from all sources, except all means-tested public assistance benefits which include any earned income tax credit and payments received for children of prior marriages. This would include income that could be acquired by the parties through reasonable efforts. For instance, a court may consider as income the retained earnings in a closely-held corporation of which a party is a shareholder if the earnings appear excessive or inappropriate. All income should be annualized and divided by 12. For example, a party who receives a salary of $200 gross per week would have an annualized gross income of $10,400 ($200 times 52 weeks) and a monthly income of $866.67 (10,400 divided by 12). If the person is paid $200 every 2 weeks, his or her annualized gross income would be $5,200 ($200 times 26 weeks) and monthly income would be $433.33 (5,200 divided by 12). The court may consider overtime wages in determining child support if the overtime is a regular part of the employment and the employee can actually expect to regularly earn a certain amount of income from working overtime. In determining whether working overtime is a regular part of employment, the court may consider such factors as the work history of the employee for the employer, the degree of control the employee has over work conditions, and the nature of the employer’s business or industry. Depreciation calculated on the cost of ordinary and necessary assets may be allowed as a deduction from income of the business or farm to arrive at an annualized total monthly income. After an asset is shown to be ordinary and necessary, depreciation, if allowed by the trial court, shall be calculated by using the “straight-line” method, which allocates cost of an asset equally over its useful duration or life. An asset’s life should be determined with reference to the Class-lives and Recovery Periods Table created pursuant to 26 CFR § 1.167(a)-11. A party claiming depreciation shall have the burden of establishing entitlement to its allowance as a deduction. Copies of at least 2 years' tax returns, financial statements, and current wage stubs should be furnished to the court and the other party to the action at least 3 days before any hearing requesting relief. Any party claiming an allowance of depreciation as a deduction from income shall furnish to the court and the other party copies of a minimum of 5 years' tax returns at least 14 days before any hearing pertaining to the allowance of the deduction. If applicable, earning capacity may be considered in lieu of a parent's actual, present income and may include factors such as work history, education, occupational skills, and job opportunities. Earning capacity is not limited to wage-earning capacity, but includes moneys available from all sources. Paragraph D amended Dec. 23, 1992; Paragraph D amended effective Jan. 1, 1996, Paragraph D amended effective Sept. 1, 2002 E. Deductions. The following deductions should be annualized to arrive at monthly net income: 1.  Taxes. Standard deductions applicable to the number of exemptions provided by law will be used to establish the amount of federal and state income taxes. 2.    FICA. Social security deductions, or any other mandatory contributions in lieu of social security deductions. 3.    Health Insurance. The increased cost to the parent for health insurance for the child(ren) of the parent shall be allowed as a deduction from gross income. The parent requesting an adjustment for health insurance premiums must submit proof of the cost of the premium. 4.    Retirement. Individual contributions, in a minimum amount required by a mandatory retirement plan. Where no mandatory retirement plan exists, a deduction shall be allowed for a continuation of actual voluntary retirement contributions not to exceed 4 percent of the gross income from employment or 4 percent from the net income from self-employment. 5.    Child Support. Child support previously ordered for other children. 6.    Other Children. Subject to Paragraph T, credit may be given for biological or adopted children for whom the obligor provides regular support. Paragraph E amended effective Jan. 1, 1996, Paragraph E amended effective Sept. 1, 2002. F. Monthly Support. The combined monthly net income of both parties from line 4 of worksheet 1 is compared to table 1. For example, if the combined monthly net income was $1,500 and there were three children, we would find $530 as the child support from table 1 (read across the table from $1,500 to the "Three" column to find $530). Paragraph F amended effective Jan. 1, 1996. Paragraph F amended effective Jan 1, 2004. G. Parent's Monthly Share. This is the child support amount from line 7, worksheet 1, multiplied by the percentage contribution of each parent from line 6, worksheet 1. In our example, if F had a monthly net income of $1,000 and M had a monthly income of $500, each parent's monthly share would be $355.10 for F (.67 times $530) and $174.90 for M (.33 times $530). F would be required to pay M $355.10 per month in the event M was awarded custody of the children. Paragraph G amended effective Jan. 1, 1996. Paragraph G amended effective Jan 1, 2004. H. More Than One Child. If there is more than one child, the court's order should specify the amount of child support due for the children, with the amount recalculated and reduced as the obligation to support terminates for each child. The amount due for each possibility should be calculated separately from table 1. In our example, if M was awarded custody of the children, F would be required to pay $355.10 (.67 times $530) when there are three children, $328.30 (.67 times $490) when there are two children, and $258.62 (.67 times $386) when there is one child. See worksheet 4. The order should direct that child support continue only until each child reaches majority under Nebraska law, becomes emancipated, becomes self- supporting, marries, or dies, or until further order of the court. Paragraph H amended Dec. 23, 1992; Paragraph H amended effective Jan. 1, 1996. Paragraph H amended effective Jan 1, 2004. I. Minimum Support. It is recommended that even in very low income cases, a minimum support of $50, or 10 percent of the obligor’s net income, whichever is greater, per month be set. This will help to maintain information on such obligor, such as his or her address, employment, etc., and, hopefully, encourage such person to understand the necessity of supporting his or her children. Paragraph I amended Dec. 23, 1992; Paragraph I amended effective Sept. 1, 2002. J. Visitation or Parenting Time Adjustments. Visitation or parenting time adjustments or direct cost sharing should be specified in the support order. An adjustment in child support may be made at the discretion of the court when visitation or parenting time substantially exceeds alternating weekends and holidays and 28 days or more in any 90-day period. During visitation or parenting time periods of 28 days or more in any 90-day period, support payments may be reduced by up to 80 percent. The amount of any reduction for extended parenting time shall be specified in the court’s order and shall be presumed to apply to the months designated in the order. Any documented substantial and reasonable long-distance transportation costs directly associated with visitation or parenting time may be considered by the court and, if appropriate, allowed as a deviation from the guidelines. Paragraph J amended effective Jan. 1, 1996; Paragraph J amended effective Sept. 1, 2002. K. Split Custody. Split custody is defined as each parent having physical custody of one or more of the children. Worksheet 2 shows how to do this calculation. L. Joint Physical Custody. When a specific provision for joint physical custody is ordered, support may be calculated using worksheet 3. M. Alimony. These guidelines intend that spousal support be determined from income available to the parties after child support has been established. N. Child-Care Expenses. Child-care expenses are not specifically computed into the guidelines amount and are to be considered independently of any amount computed by use of these guidelines. Child-care expenses for the child for whom the support is being set, which are due to employment of either parent or to allow the parent to obtain training or education necessary to obtain a job or enhance earning potential, shall be allocated to the obligor parent as determined by the court, but shall not exceed the proportion of the obligor’s parental contribution (worksheet 1, line 6) and shall be added to the basic support obligation computed under these guidelines. The value of the federal income tax credit for child care may be subtracted from actual costs to arrive at a figure for net child-care expenses. Paragraph N amended effective Jan. 1, 1996; Paragraph N amended effective Sept. 1, 2002. O. Health Care. Children’s health care expenses are specifically included in the guidelines amount of up to $480 per child per year. Children's health care needs are to be met by requiring either parent to provide health insurance as required by state law. All nonreimbursed reasonable and necessary children's health care costs in excess of $480 per child per year shall be allocated to the obligor parent as determined by the court, but shall not exceed the proportion of the obligor’s parental contribution (worksheet 1, line 6). Paragraph O amended effective Jan. 1, 1996; Paragraph O amended effective Sept. 1, 2002. Paragraph O amended effective Jan 1, 2004. P. Review. The State Court Administrator shall review the Nebraska Child Support Guidelines not less than every 4 years, beginning in October 1993, and recommend revisions, if any, to the Nebraska Supreme Court. In addition, the Supreme Court will review reports submitted to it by the State Disbursement and Child Support Advisory Commission. Paragraph P amended effective Jan. 1, 1996; Paragraph P amended effective Sept. 1, 2002. Q. Modification. Application of the child support guidelines which would result in a variation by 10 percent or more, but not less than $25, upward or downward, of the current child support obligation, child care obligation, or health care obligation, due to financial circumstances which have lasted 3 months and can reasonably be expected to last for an additional 6 months, establishes a rebuttable presumption of a material change of circumstances. Paragraph Q amended effective Jan. 1, 1996; Paragraph Q amended effective Sept. 1, 2002. R. Basic Subsistence Limitation. A parent's support, child care, and health care obligation shall not reduce his or her net income below the minimum of $817 net monthly for one person, or the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services under authority of 42 U.S.C. ¶ 9902(2), except minimum support may be ordered as defined in paragraph I., above. Paragraph R (previously Q) adopted Dec. 23, 1992; amended effective Jan. 1, 1996; amended September 25, 1996; amended March 26, 1997; amended March 18, 1998; amended April 21, 1999, amended March 15, 2000, amended April 18 2001; Paragraph R amended effective Sept. 1, 2002. Paragraph R amended effective 2005. Paragraph R amended effective 2006. S. Limitation on Increase. Under no circumstances shall there be an increase in support due from the obligor solely because of an increase in the income of the obligee. Paragraph S effective Sept. 1, 2002. T. Limitation on Decrease. An obligor shall not be allowed a reduction in an existing support order solely because of the birth, adoption, or acknowledgment of subsequent children of the obligor; however, a duty to provide regular support for subsequent children may be raised as a defense to an action for an upward modification of such existing support order. Paragraph T effective Sept. 1, 2002.