Rule Guideline 4 Calculating Child Support: Sole Physical Custody

(a) Applicability and Scope. This Guideline governs the child support obligations to a parent with sole physical custody over a child. The parent who does not have sole physical custody over a child is the non-custodial parent.

(b) Income Types.

(1) Gross Income. Gross income means actual monthly gross income of the parent if employed to full capacity, potential income if unemployed or underemployed, or imputed income based upon “in-kind” benefits.

(A) Monthly gross income includes, but is not limited to: salaries, wages, commissions, bonuses, overtime, partnership distributions, dividends, severance pay, pensions, interest, trust income, annuities, capital gains, social security benefits, worker’s compensation benefits, unemployment insurance benefits, disability insurance benefits, gifts, prizes, and alimony or maintenance received from other marriages.

(B) Monthly gross income excludes benefits from means- tested public assistance programs including, but not limited to: Temporary Assistance to Needy Families (“TANF”), Supplemental Security Income (“SSI”), Supplemental Nutritional Assistance Program, general assistance, or sums received as child support.

(2) Potential Income. Calculations for parents who are voluntarily unemployed or underemployed shall be based on a determination of potential income. Potential income includes an evaluation of a number of factors, such as: employment potential and probable earnings level based on the parent’s assets, residence, employment and earnings history, job skills, educational attainment, literacy, age, health, responsibility for pre-school children of custodial parents, criminal record and other employment barriers, record of seek working; the local job market; the availability of employer’s willing to hire the non-custodial parent; prevailing wages in the local community; and other relevant background factors in the case.

(3) Self-Employment. Gross income from self-employment, operation of a business, rent, and royalties consists of gross receipts minus ordinary and necessary expenses. Gross income from self-employment may differ from a determination of business income for tax purposes.

(i) In general, the types of income and expenses should be carefully reviewed to restrict the deductions to reasonable out-of-pocket expenditures necessary to produce income. These expenditures may include a reasonable yearly deduction for necessary capital expenditures.

(ii) Expense reimbursements or benefits received by a parent during employment, self-employment, or operation of a business should be counted as income if they are significant and reduce personal living expenses. Such benefits may include a company car, free housing, or reimbursed meals.

(iii) Self-employed persons shall be permitted to deduct the portion of their Federal Insurance Contributions Act (“FICA”) tax payment that exceeds the FICA tax that would be paid by an employee earning the same monthly gross income.

(c) Calculating Child Support Obligations.

(1) Adjusted Gross Income. Each parent’s adjusted gross income will be established by deducting the following from the gross income of each parent:

(A) Self-support. Self-support in the amount of $550.00.1

(B) Other Court-Ordered Obligations. Where applicable, monthly court-ordered spousal maintenance, child The self-support figure is based on the 2019 U.S. Department of Health and Human Services Poverty Guidelines for the 48 contiguous states and the District of Columbia. Under the Poverty Guidelines, the poverty threshold for a family of four is $25,750. This equates to $536.46 per person per month. The CNMI Child Support Guidelines rounds this figure to $550.00. support of other children, or child support actually paid where there is no court order.

(i) “Other children” includes children who are not subject of the particular child support determination.

(C) Other Children. Where applicable, $50.00 for each child living with each parent.

(D) Medical Insurance. Where applicable, the cost of medical insurance coverage for the parent paying the insurance premium to be calculated on a per capita basis. Reimbursement for health insurance premiums may be awarded to the respective parent in place of a gross- income deduction.

(2) Combined Adjusted Monthly Gross Income. The combined total of each parent’s adjusted gross income is the combined adjusted monthly gross income.

(3) Basic Child Support Obligation. The basic child support obligation shall be established by:

(A) Locating the combined adjusted gross income on Schedule A;

(B) Matching the combined adjusted gross income on Schedule A to the column for the number of children involved; and

(C) Multiplying the figure in Rule 4(c)(3)(B) with the corresponding percentage in Schedule A.

(i) Minimum. The minimum basic child support obligation shall be $50.00 per child per month.

(ii) Supplemental Security Income. No child support order shall be entered in the case of the non- custodial parent whose sole source of income is SSI.

(4) Total Child Support Obligations. The following items may be added by the court to the basic child support obligation:

(A) Child Care Costs. Childcare expenses appropriate to the parent’s financial abilities and the children’s lifestyle had the family remained intact;

(B) Education Expenses. Reasonable and necessary expenses for attending private or special schools, or necessary expenses to meet a child’s particular educational needs when such expenses are incurred by the agreement of both parents or as ordered by the court; and

(C) Older Child Adjustment. The court may increase child support for an older child up to ten percent of the support on Schedule A.

(5) Proportional Share. The total child support obligation shall be divided between parents in proportion to their adjusted gross income. Multiple each parent’s percentage of his or her combined adjusted gross income by the total child support obligation. The custodial parent shall be presumed to spend his or her share on the children. The court shall order the noncustodial parent to pay child support in an amount equal to his or her proportionate share of the total child support obligation.

(d) Income Unknown. If the non-custodial parent’s income is unknown, a temporary child support award shall be set at $150.00 per child. Worksheet A need not be filled out.

(e) Visitation. The court may consider the costs of visitation and may allocate such costs between the parents in proportion to their ability to pay.

(f) Abatement. When the non-custodial parent is directly providing for the children’s need for an extended period, such as on a long visit, the court may order a reduction of child support paid to the custodial parent.