levitra"> levitra"> Contribution to Daycare
levitra

Click to go home.

Google
 

Search:
 

Survival Tools
& Resources
Divorce & Finance Blog
Divorce Discussion
Forums
Divorce Help Desk
Divorce Resource Library
Professional & 
Resource Directory
State Divorce Information
New Trends in Divorce
 
 
Divorced or Separated Individuals (IRS Pub 504)
Divorce News
Subscribe to Divorce Interactive News
Ask the Expert
     Financial Planner
Columns
     Parental Guidance
     Child-Centered Solutions
Divorce Interactive Newsletter
Divorce Books
Glossary





Contribution to Daycare

Contribution to Daycare

By Maury D. Beaulier, Esq.



A common question for divorcing parties is "who pays for the daycare?" As an additional obligation, Minnesota Statutes now require the non-custodial parent to contribute to any child care expenses incurred as a result of the custodial parent's employment or schooling. The expenses are divided only after deducting twenty-five percent (25%) from the total daycare costs since the custodial parent is entitled to a tax deduction in that approximate percentage each year. In other words, if the daycare costs equal $800 each month, the portion divided between the parents is only 75% of that figure or $600. Those allowable child care costs are divided between the parties proportionate to their income.



For example, let's say dad earns $2,000 net per month and mom earns $3,000 net per month. Let's say dad has physical custody of the one minor child from the relationship. Mom would have a guideline child support obligation pursuant to Minnesota Statutes of $750 for one child (25% of her net income). Each parties' contribution to daycare expenses is then calculated based on their proportionate share of the total household income.

Mom has $2,250 each month after deducting her child support obligation of $750. Dad will have $2,750 per month after adding in the child support paid to him by mom. The total income is $5,000. Therefore, mom's proportionate responsibility for daycare expenses is calculated by determining her percentage of the total income. That percentage is determined by dividing mom's income by the total income ($2,250 divided by $5000 = .45) or 45%. In this example, mom's proportionate responsibility would be 45% of the allowable child care costs or $270 ($600 x .45).

 





DivorceInteractive.com tries to provide quality information, but cannot guarantee the accuracy, completeness or adequacy of the information, opinions or other content posted on the site. It is not intended as a substitute for and should not be relied upon as legal, financial, accounting, tax, medical or other professional advice. It should not be construed as establishing a professional-client or professional-patient relationship. The applicability of legal principles is subject to amendment by the legislature, interpretation by the courts and different application by different judges and may differ substantially in individual situations or different states. Before acting on what you have read, it is important to obtain appropriate professional advice about your particular situation and facts. Access to and use of DivorceInteractive.com is subject to additional Terms and Conditions. DivorceInteractive.com is a secure site and respects your Privacy.


Home  |  Advertise With Us  |  Professional & Resource Directory
Divorce News  | Glossary  | Divorce Discussion Forums
Change Area Code  | Terms & Conditions/Legal Disclaimer  |  Privacy Policy  |  About Us   |  Contact Us

2001-2010 DivorceInteractive.com  All Rights Reserved.