Nebraska Supreme Court Upholds Earning Capacity Use For Child Support Calculation

Caldwell Victorious In Nebraska Supreme Court Case

Earning Capacity for Nebraska Child Support

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In late September, I mentioned my argument before the Nebraska Supreme Court regarding an issue dealing with Nebraska Child Support. The  Court held, in Freeman v. Groskopf, 286 Neb. 713 (2013), that using a parent’s earning capacity instead of actual wages is permissible in determining child support under the Nebraska Child Support Guidelines.

Nebraska Child Support Calculation

I’ll leave the intricacies of calculating Nebraska child support for another article, but generally, the income of each parent is inputted into a formula to derive each parent’s portion of child support. But how does a Court determine income if one parent doesn’t work or chooses not to work? Just insert no income? Minimum wage? What if a parent is working in a position that is below his/her abilities or experience and could find a job that pays commensurate with ability, experience, and education? Still list what the parent’s actual wages are?

Earning Capacity

Instead of using actual wages, a Nebraska child support judge can determine a parent’s earning capacity to calculate child support. If a parent is able to work, but chooses not to, a Judge can, based on evidence presented, determine what amount would be appropriate for child support purposes.

Earning capacity can also be used when a parent is working, but is not earning an income commensurate to the skills, education, and experience the parent possesses. As the Nebraska Supreme Court pointed out, “use of earning capacity to calculate child support is useful ‘when it appears that the parent is capable of earning more income than is presently earned.” Rauch v. Rauch, 256 Neb. 257, 264, 590 N.W.2d 170, 175 (1999).

Voluntary Wastage or Dissipation of Talent

A common scenario in Nebraska Child Support cases occurs when a parent requests a Court to modify their current child support obligation due to no longer having a job or accepting a lower paying job than when the original child support order was made. If the parent quit the job, lost the job due to his/her own fault, or purposefully took a lower paying job to skirt his/her child support obligation, the Nebraska Child Support Court can use earning capacity, again, if there is sufficient evidence present, in calculating child support.

Consider Caldwell Law for your Nebraska Child Support issues or appealing a child support order you believe is contrary to the law.