The Consequences of Child Support Policy for Family Financial Well-Being

Abstract

The study examined the impact of child support policy on the financial well-being of one family experiencing divorce in Minnesota. Data were collected from a court record of a 1999 marital dissolution with joint legal and physical custody and a child support order that deviated from state guidelines. The analysis compared the needs-adjusted income the parties had while in the marriage with the needs-adjusted incomes provided by the actual child support order, and with hypothetical amounts consistent with the child support guidelines, and with the situation of sole physical custody. Financial well-being was measured using three types of ratios estimating income in relation to financial needs. Incomes were divided by (a) Federal Poverty Income Guidelines for 1999; (b) Economic Policy Institute's basic budget for Minneapolis-Saint Paul, Minnesota for 1999; and (c) USDA Parental Expenditures on Children for 1999. Results indicated that regardless of the needs standard used, the best financial outcomes were for the father's household. The deviations from the child support guidelines did not seem justified based on the financial calculations, and were not in the best interests of the children. Implications for educators were discussed.