How a Significant Change in Income Affects Child Support Modification in Texas

Child support is a crucial part of many families’ lives, helping ensure that children receive the financial care they need even when parents are no longer together. In Texas, child support is based on the income of the parent who does not have primary custody, also known as the obligor. Courts calculate child support payments by considering the income of this parent, along with other factors, to determine the amount owed each month. However, situations change, and sometimes income levels shift in significant ways, which may call for a modification of the original child support order. Understanding when and how to request a change in child support payments due to a significant change in income is important for both parents and children. At, McCarty Larson, PLLC , we are here to guide you through the legal process and help you navigate the complexities of your case.

Understanding Child Support in Texas

The Texas Family Code is used to determine child support, with the goal of balancing financial support for children with the obligor’s ability to pay. Generally, child support payments are calculated as a percentage of the obligor’s income, with certain deductions and other considerations applied. The basic guideline rate for one child is usually about 20 percent of the obligor’s net income, with an increase in this rate for additional children. When an order is established, the income of the obligor and any specific needs of the children involved are considered, aiming to establish a fair amount of support. However, this amount is not set in stone, as life circumstances, especially income, can change over time.

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What is Considered a Significant Change in Income?

A significant change in income can occur due to a variety of reasons. For example, a parent may receive a major promotion with a substantial salary increase or, on the other hand, they may experience job loss or suffer a medical emergency that affects their earning potential. Courts in Texas generally consider a change in income to be significant if it causes a 20 percent or $100 difference in the monthly support obligation. This means that even a change that might seem modest could qualify for a modification request if it meets this threshold. If the change in income is only temporary, the court might not grant a modification. To qualify as significant, the income change should be long-term, ensuring that the new financial situation will affect the parent’s ability to meet the original support order for an extended period. 

Reasons Why Income Changes and How It Impacts Child Support

Parents can experience income changes for many reasons. Sometimes, these changes are positive, such as when a parent receives a new job offer with a better salary or completes additional training that increases their earning capacity. In other situations, the changes may be negative. For example, the obligor may lose their job due to company layoffs, become injured or disabled, or even reach retirement age. When income changes affect a parent’s ability to make child support payments, the financial stability of the child or children involved is also impacted. Texas courts recognize that children should not suffer because of these changes, but they also understand that it would be unfair to expect a parent to maintain payments that are no longer reasonable due to a shift in their income.

How to Request a Child Support Modification in Texas

If you have experienced a significant change in your income and believe it warrants a modification of your child support payments, you will need to follow certain steps in Texas. A formal modification request must be made to the court that issued the original child support order. To begin the process, you can file a petition to modify the child support order with the court. The court will then review your case and determine whether the change in income is substantial enough to approve the modification. Documentation of the income change, such as pay stubs, tax returns, or termination letters, can be useful in supporting your request for modification. You may need to attend a hearing where a judge will consider all relevant information, including your current financial circumstances, to decide whether the support order should be changed.

When Does a Court Approve a Child Support Modification?

Courts in Texas approve child support modifications when they find that there has been a substantial change in circumstances, such as a notable change in the obligor’s income. However, other situations can also lead to a modification. For instance, if the custodial parent’s circumstances have significantly changed, if the needs of the child have altered due to medical or educational reasons, or if the child has reached an age where they require different forms of support, the court might consider altering the original order. Each case is reviewed on an individual basis, with the court striving to ensure that the child’s best interests are prioritized. Additionally, if it has been three or more years since the original order was issued, a court may agree to review the child support arrangement even if the change in income is not major, provided the new calculation would result in at least a 20 percent or $100 difference from the current amount.

Voluntary vs. Involuntary Income Changes

Courts tend to be more open to modification requests when the income change is involuntary. An involuntary change happens when the parent cannot control or prevent the drop in income, such as a job loss due to company closure or a significant medical event. Courts may view such situations as a valid reason for modifying support. On the other hand, if a parent voluntarily quits their job, reduces their hours, or makes other decisions that lower their income, courts might be less inclined to approve a modification. In these cases, a judge may determine that the parent is still responsible for the original child support amount, as they have chosen to reduce their income and should still fulfill their obligations.

Impact of Increased Income on Child Support

When an obligor’s income increases significantly, the custodial parent may seek to modify the child support order to match the new income level. Courts in Texas believe that children should benefit from the financial success of both parents. Therefore, if a parent has a notable salary increase or takes on a new, higher-paying job, the custodial parent may request a modification so that the children receive additional support. The request for a modification can lead to an increase in the child support amount if the judge finds that the new financial situation would improve the well-being of the child. It is essential for both parents to report significant changes in income, as failing to do so can lead to penalties or further complications if discovered later.

Effect of a Decrease in Income on Child Support Obligations

If the obligor’s income decreases substantially, they may also seek a modification of their child support payments. Texas courts recognize that life changes can make it difficult for an obligor to maintain the same level of payments, especially if they are facing financial hardship. In these cases, the court may consider a reduction in payments to reflect the new income level. This reduction is not automatic, however, and requires a formal request along with proof of the income change. The goal of the court in these situations is to ensure that children continue receiving necessary support while adjusting to the parent’s ability to contribute financially.

The Role of Legal Assistance in Child Support Modifications

Navigating the child support modification process can be complicated, especially when significant income changes are involved. Each modification request involves gathering evidence, filing documents, and often attending court hearings. Many parents find that the assistance of a knowledgeable attorney can make a substantial difference, helping them understand the necessary steps and represent their interests before the court. An attorney familiar with Texas child support laws can ensure that all requirements are met and that each parent’s rights and obligations are fully protected throughout the modification process.

If you are experiencing a significant change in income and believe it may affect your child support obligations, McCarty Larson, PLLC can guide you through the modification process. Whether you are seeking an increase or a decrease in your child support payments, our team understands the importance of fair and accurate support orders. We are here to assist you in navigating the Texas legal system, ensuring your child’s well-being remains the focus while addressing your financial circumstances. Contact McCarty Larson, PLLC today to learn how we can support you in achieving the best outcome for your family.