The process is straight forward with a little complexity at certain points. Basically, Maryland Law first defines what is the income of each parent. And just to mention overtime and income from a second job are each included in income for child support purposes. Some times under specific circumstances a non working parent can be assessed an income. However assuming each parent is working Maryland Child Support law simply takes each income and calculates the child support obligation by a mathematical formula. The amount of the child support obligation can be affected by variables. Such as a use and possession order, self employment, child care cost, other child support payment, other alimony payments, and the number of overnights the non custodial parent has with the child. Also, just to mention when the combined incomes exceed the guideline amounts, that also can affect the child support calculation. However, the generally accepted practice in nearly all courts is to extrapolate the child support figures in the above guideline cases. If you desire however you can make the argument that the guidelines do not apply in above guideline cases and argue for a fact driven calculation.

Practice Tip:

There are some points of interest relative to child support modifications. If the child support was initially the result of a Court Order you can seek a modification upon a show of material change in financial circumstances. Generally any increase or decrease in the child support amount (not necessarily a decrease or increase in the income) that would increase or decrease the child support by 25% is a material change of financial circumstances.  If however the child support was arrived at by agreement between the parties and that agreement was later incorporated in the judgment of divorce, then the child support can be modified only upon the showing of (1) that the modification of the child support is in the child(ren) best interest and (2) that the new proposed child support figure is in the child(ren) best interest. I have located cases in Maryland where the Court has reduced the child support as it was in the kids best interest. Mostly the cases revolve around a changed circumstance of course and the impact of the change circumstances on the payer's ability to maintain visitation and or relationships with the children. Apparently Maryland will forgo money in exchange for fostering relationships and quality contact between parent and child.

How Does MARYLAND LAW define income ?

(b)(1) "Actual income" means income from any source.
 

(2) For income from self-employment, rent, royalties, proprietorship of a business, or joint ownership of a partnership or closely held corporation, "actual income" means gross receipts minus ordinary and necessary expenses required to produce income.
 

(3) "Actual income" includes:
 

(i) salaries;
 

(ii) wages;
 

(iii) commissions;
 

(iv) bonuses;
 

(v) dividend income;
 

(vi) pension income;
 

(vii) interest income;
 

(viii) trust income;
 

(ix) annuity income;
 

(x) Social Security benefits;
 

(xi) workers' compensation benefits;
 

(xii) unemployment insurance benefits;
 

(xiii) disability insurance benefits;
 

(xiv) for the obligor, any third party payment paid to or for a minor child as a result of the obligor's disability, retirement, or other compensable claim;
 

(xv) alimony or maintenance received; and
 

(xvi) expense reimbursements or in-kind payments received by a parent in the course of employment, self-employment, or operation of a business to the extent the reimbursements or payments reduce the parent's personal living expenses.
 

(4) Based on the circumstances of the case, the court may consider the following items as actual income:
 

(i) severance pay;
 

(ii) capital gains;
 

(iii) gifts; or
 

(iv) prizes.
 

(5) "Actual income" does not include benefits received from means-tested public assistance programs, including temporary cash assistance, Supplemental Security Income, food stamps, and transitional emergency, medical, and housing assistance.
 

Adjusted actual income

(c) "Adjusted actual income" means actual income minus:
 

(1) preexisting reasonable child support obligations actually paid;
 

(2) except as provided in § 12-204(a)(2) of this subtitle, alimony or maintenance obligations actually paid; and
 

(3) the actual cost of providing health insurance coverage for a child for whom the parents are jointly and severally responsible.
 

Adjusted basic child support obligation

(d) "Adjusted basic child support obligation" means an adjustment of the basic child support obligation for shared physical custody.

 

Basic child support obligation

(e) "Basic child support obligation" means the base amount due for child support based on the combined adjusted actual incomes of both parents.
 

Combined adjusted actual income

(f) "Combined adjusted actual income" means the combined monthly adjusted actual incomes of both parents.
 

Extraordinary medical expenses

(g)(1) "Extraordinary medical expenses" means uninsured expenses over $100 for a single illness or condition.
 

(2) "Extraordinary medical expenses" includes uninsured, reasonable, and necessary costs for orthodontia, dental treatment, asthma treatment, physical therapy, treatment for any chronic health problem, and professional counseling or psychiatric therapy for diagnosed mental disorders.
 

Income

(h) "Income" means:

(1) actual income of a parent, if the parent is employed to full capacity; or

(2) potential income of a parent, if the parent is voluntarily impoverished.

(i) "Ordinary and necessary expenses" does not include amounts allowable by the Internal Revenue Service for the accelerated component of depreciation expenses or investment tax credits or any other business expenses determined by the court to be inappropriate for determining actual income for purposes of calculating child support.
 

Potential income

(j) "Potential income" means income attributed to a parent determined by the parent's employment potential and probable earnings level based on, but not limited to, recent work history, occupational qualifications, prevailing job opportunities, and earnings levels in the community.
 

Shared physical custody

(k)(1) "Shared physical custody" means that each parent keeps the child or children overnight for more than 35% of the year and that both parents contribute to the expenses of the child or children in addition to the payment of child support.
 

(2) Subject to paragraph (1) of this subsection, the court may base a child support award on shared physical custody:
 

(i) solely on the amount of visitation awarded; and
 

(ii) regardless of whether joint custody has been granted.
 

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