These changes mark the most substantial revision to child support guidelines in years, with the goal of creating a more equitable and efficient system for families across the state.

On September 1, 2024, California enacted Senate Bill 343 (SB 343), ushering in significant updates to the state’s child support calculation process. These changes mark the most substantial revision to child support guidelines in years, with the goal of creating a more equitable and efficient system for families across the state.

Child support is calculated using a mandatory formula, set forth in Family Code section 4055. The formula uses a range of income bands to calculate support, which hadn’t been updated for 32 years.
This article breaks down the updates introduced by SB 343, examines their implications, and offers guidance for families and legal practitioners navigating the new system.

• Changes to the Child Support Formula
• Allocation of Add-On Expenses
• Low-Income Adjustments
• Expanded Definition of Income
• Impact on Spousal Support

Changes to the Child Support Formula

The modifications to the child support formula under SB 343 result in higher child support payments for most income levels.

Updated “K-Factor”: The “K-factor,” which determines the percentage of income allocated for child support, has been revised to account for a broader range of net disposable income. This adjustment increases the amount of child support paid, ensuring it aligns more closely with the actual cost of raising children in today’s economy.

Allocation of Add-On Expenses

Add-on expenses—such as childcare, medical costs, and extracurricular activities—play a critical role in child support calculations. SB 343 introduces the following updates:
Proportional Sharing Rule: Historically, the default presumption was a 50/50 split of add-on expenses, regardless of income disparity. While parties could request proportional sharing based on post-tax income, many courts defaulted to an equal split. SB 343 now makes proportional sharing based on each party’s share of post-tax income the default.

Rebuttable Presumption for Childcare Costs: Work-related childcare costs are now presumed reasonable unless evidence proves otherwise, reducing disputes and streamlining court decisions.

Low-Income Adjustments

To protect parents with limited financial means, SB 343 introduces several updates to low-income adjustments:

New Low-Income Threshold: The threshold now aligns with the earnings of a 40-hour workweek at the state’s minimum wage. This adjustment raises the threshold from approximately $2,100 to $2,800 per month, ensuring greater protection for low-income obligors.

Presumption of Adjustment: Courts now presume low-income obligors are entitled to an adjustment unless there is clear evidence that it would be unjust or inappropriate.

Automatic Deviation Calculations: If child support payments exceed 50% of the obligor’s net disposable income, the court may trigger an automatic deviation to prevent undue hardship.

Expanded Definition of Income

SB 343 broadens the scope of income sources considered in child support calculations, reflecting modern employment and financial practices:

New Income Sources: Severance pay, non-need-based veterans’ benefits, and military allowances for housing (BAH) and food (BAS) are now explicitly included in gross income calculations.

Impact on Spousal Support

The Alameda guideline spousal support calculation, which incorporates child support payments when determining spousal support, will see a noticeable shift.

Decreased Spousal Support: As child support amounts increase under SB 343, guideline spousal support will likely decrease proportionally. This interconnected calculation reflects the need to balance financial responsibilities fairly between child and spousal support obligations.

What These Changes Mean for You

The updates under SB 343 are designed to provide a more accurate and equitable distribution of financial responsibilities. However, these changes also mean that parents with existing child or spousal support orders may need to re-evaluate their agreements.

When to Consider Modifying Your Support Order

Increased Obligations: If your financial circumstances have changed or if you are concerned about the impact of the new formula, it may be time to file a motion to modify your support order.

Low-Income Adjustments: Low-income obligors may benefit from a recalculation under the updated thresholds.

Proportional Sharing of Add-On Expenses: If your previous arrangement defaulted to a 50/50 split of expenses, recalculating under the new guidelines could provide relief.

Conclusion

The implementation of SB 343 represents a landmark change in California’s approach to child support calculations, reflecting a more nuanced understanding of financial realities. These updates may significantly impact families and their financial obligations, particularly regarding child and spousal support.

If you are considering filing a motion to modify your support order or want to understand how these changes affect your case, consulting with an experienced family law attorney is essential. They can help you navigate the complexities of SB 343 and determine the best course of action based on your unique circumstances.

Stay informed and proactive—these changes offer an opportunity to ensure fairness and equity in family support matters.