High income does not put a Nevada child-support case outside the guidelines. The starting point remains the parent’s income, the number of children, the custody arrangement, and the applicable adjustments. For business owners, executives, physicians, and other parents with variable earnings, the difficult question is often what income the calculation should include.
Ford & Flaxman’s Las Vegas child support practice addresses establishment, modification, and enforcement. This guide explains the financial questions that deserve particular attention in a higher-income case.
The Schedule Continues Above $10,000 Per Month
NAC 425.140 applies different percentages to portions of gross monthly income. For one child, the base calculation is 16% of the first $6,000, plus 8% of the portion above $6,000 through $10,000, plus 4% of the portion above $10,000. The percentages differ for two or more children. Separate low-income provisions apply in qualifying circumstances.
For illustration, $20,000 in gross monthly income produces a one-child base calculation of $960 + $320 + $400 = $1,680. This is not a prediction of an order: custody offsets, medical support, child-care costs, and supported adjustments still have to be considered. The current schedule does not stop at a fixed dollar ceiling or use the former annually adjusted per-child cap.
Look Beyond the Amount on a Paycheck
NAC 425.025 defines gross income broadly and also identifies exclusions. Wages, investment income, specified retirement payments, and other income can matter. The treatment of bonuses, deferred compensation, and stock-based compensation requires attention to the particular payment and supporting records.
For a parent with sufficient control over a business, certain undistributed business income can be relevant even when it has not been paid as salary. Business revenue, taxable profit, cash distributions, and income available for support are not interchangeable figures. Depreciation and the parent’s access to earnings may require analysis under the regulation.
Useful records can include pay statements, compensation agreements, tax returns, business financial statements, distributions, and records explaining unusual income. Provide records through lawful disclosure and secure channels; do not access someone else’s accounts without authorization.
Joint Custody Does Not Necessarily Eliminate Support
Under NAC 425.115, the obligations of both parents are calculated and offset in joint physical custody cases. The parent with the higher obligation pays the difference. That makes an accurate assessment of both parents’ income important, including when their parenting time is equal.
Adjustments Need Evidence
The guidelines presume that a guideline-based obligation meets the child’s basic needs, but evidence can rebut that presumption. NAC 425.100 and 425.150 address deviations and adjustments. The court must make supporting findings rather than simply choose an amount because one parent earns a high income.
The child’s particular needs, the parties’ economic circumstances, and expenses permitted by the guidelines require documentation. Reasonable child-care costs and medical-support provisions must also be addressed. A proposed budget is more useful when it distinguishes recurring expenses, shared costs, and unusual needs instead of treating every expenditure as automatically reimbursable.
When Earnings Change
A business downturn, lost bonus, or new compensation arrangement does not itself amend a support order. NRS 125B.145 provides for review upon request at least every three years and permits review based on changed circumstances. A change of 20% or more in gross monthly income qualifies as changed circumstances for review; it does not guarantee a particular adjustment.
Keep following the current order and obtain advice about the appropriate procedure, evidence, and effective date. Questions involving existing arrears or allegedly concealed income are separate from calculating a new base amount.
Questions About High-Income Child Support
Is there a maximum income after which the formula stops?
No fixed upper-income cutoff appears in the current NAC 425.140 schedule. Its final percentage tier continues to apply above $10,000 per month. The court must still consider the other applicable rules and evidence.
Can retained business earnings affect support?
They can. The definition of gross income includes certain undistributed income when a parent has sufficient ownership control or access. The legal definition and the actual business records need to be reviewed together.
What should I bring to a consultation?
Bring the current support and custody orders, recent income records, relevant compensation or business documents, and an organized summary of child-related expenses. Ask the office how to share sensitive records securely. Contact Ford & Flaxman to discuss the particular issues. This article is general information, not an individual support calculation.