§ 9:315 — Economic data and principles; definitions

Louisiana § 9:315

• Jurisdiction: Louisiana
• Title 9: Civil Code-Ancillaries

Text

§315. Economic data and principles; definitions
A. Basic principles. The premise of these guidelines as well as the provisions of the
Civil Code is that child support is a continuous obligation of both parents, children are
entitled to share in the current income of both parents, and children should not be the
economic victims of divorce or out-of-wedlock birth. The economic data underlying these
guidelines, which adopt the Income Shares Model, and the guideline calculations attempt to
simulate the percentage of parental net income that is spent on children in intact families
incorporating a consideration of the expenses of the parties, such as federal and state taxes
and FICA taxes. While the legislature acknowledges that the expenditures of two-household
divorced, separated, or non-formed families are different from intact family households, it
is very important that the children of this state not be forced to live in poverty because of
family disruption and that they be afforded the same opportunities available to children in
intact families, consisting of parents with similar financial means to those of their own
parents.
B. Economic data.
(1) The Incomes Shares approach to child support guidelines incorporates a
numerical schedule of support amounts. The schedule provides economic estimates of child-rearing expenditures for various income levels and numbers of children in the household.
The schedule is composed of economic data utilizing a table of national averages adjusted
to reflect Louisiana's status as a low-income state and to incorporate a self-sufficiency
reserve for low-income obligors to form the basic child support obligation.
(2) In intact families, the income of both parents is pooled and spent for the benefit
of all household members, including the children. Each parent's contribution to the
combined income of the family represents his relative sharing of household expenses. This
same income sharing principle is used to determine how the parents will share a child
support award.
C. Definitions. As used in this Part:
(1) "Adjusted gross income" means gross income, minus:
(a) Amounts for preexisting child support or spousal support obligations owed under
an order of support to another who is not a party to the proceedings and
(b) At the court's discretion, amounts paid on behalf of a party's minor child who is
not the subject of the action of the court.
(2) "Combined adjusted gross income" means the combined adjusted gross income
of both parties.
(3) "Gross income" means:
(a) The income from any source, including but not limited to salaries, wages,
commissions, bonuses, dividends, severance pay, pensions, interest, trust income, recurring
monetary gifts, annuities, capital gains, social security benefits, workers' compensation
benefits, basic and variable allowances for housing and subsistence from military pay and
benefits, unemployment insurance benefits, disaster unemployment assistance received from
the United States Department of Labor, disability insurance benefits, and spousal support
received from a preexisting spousal support obligation;
(b) Expense reimbursement or in-kind payments received by a parent in the course
of employment, self-employment, or operation of a business, if the reimbursements or
payments are significant and reduce the parent's personal living expenses. Such payments
include but are not limited to a company car, free housing, or reimbursed meals; and
(c) Gross receipts minus ordinary and necessary expenses required to produce
income, for purposes of income from self-employment, rent, royalties, proprietorship of a
business, or joint ownership or a partnership or closely held corporation. "Ordinary and
necessary expenses" shall not include amounts allowable by the Internal Revenue Service for
the accelerated component of depreciation expenses or investment tax credits or any other
business expenses determined by the court to be inappropriate for determining gross income
for purposes of calculating child support.
(d) As used herein, "gross income" does not include:
(i) Child support received, or benefits received from public assistance programs,
including Family Independence Temporary Assistance Plan, supplemental security income,
food stamps, and general assistance.
(ii) Per diem allowances which are not subject to federal income taxation under the
provisions of the Internal Revenue Code.
(iii) Extraordinary overtime including but not limited to income attributed to
seasonal work regardless of its percentage of gross income when, in the court's discretion,
the inclusion thereof would be inequitable to a party.
(iv) Any monetary gift to the domiciliary party when the objective of the gift is to
supplement irregular child support payments from the nondomiciliary party.
(v) Any disaster assistance benefits received from the Federal Emergency
Management Agency through its Individuals and Households Program or from any other
nonprofit organization qualified as a tax-exempt organization under Section 501(c) of the
Internal Revenue Code of 1954, as amended.
(4) "Health insurance premiums" means the actual amount paid by a party for
providing health insurance on behalf of the child. It does not include any amount paid by an
employer or any amounts paid for coverage of any other persons. If more than one dependent
is covered by health insurance which is paid through a lump-sum dependent-coverage
premium, and not all of such dependents are the subject of the guidelines calculation, the cost
of the coverage shall be prorated among the dependents covered before being applied to the
guidelines.
(5) "Income" means:
(a) Actual gross income of a party, if the party is employed to full capacity; or
(b) Potential income of a party, if the party is voluntarily unemployed or
underemployed. A party shall not be deemed voluntarily unemployed or underemployed if
he or she is absolutely unemployable or incapable of being employed, or if the
unemployment or underemployment results through no fault or neglect of the party.
(c) The court may also consider as income the benefits a party derives from expense-sharing or other sources; however, in determining the benefits of expense-sharing, the court
shall not consider the income of another spouse, regardless of the legal regime under which
the remarriage exists, except to the extent that such income is used directly to reduce the cost
of a party's actual expenses.
(6) "Medical support" means health insurance and the payment of the medical
expenses of the child.
(7) "Net child care costs" means the reasonable costs of child care incurred by a party
due to employment or job search, minus the value of the federal income tax credit for child
care.
(8) "Ordinary medical expenses" means unreimbursed medical expenses less than
or equal to two hundred fifty dollars per child per year. Expenses include but are not limited
to reasonable and necessary costs for orthodontia, dental treatment, asthma treatment,
physical therapy, chronic health problems, and professional counseling or psychiatric therapy
for diagnosed mental disorders not covered by medical insurance. The schedule of support
in R.S. 9:315.19 incorporates ordinary medical expenses.

Legislative History

Acts 1989, 2nd Ex. Sess., No. 9, §1, eff. Oct. 1, 1989; Acts 1990, No. 117, §1, eff. June 29, 1990; Acts 1991, No. 854, §1; Acts 1993, No. 95, §1; Acts 1997, No. 1155, §5; Acts 2001, No. 1082, §1; Acts 2003, No. 547, §1; Acts 2004, No. 251, §1; Acts 2005, 1st Ex. Sess., No. 59, §1, eff. Dec. 6, 2005; Acts 2006, No. 315, §1, eff. June 13, 2006; Acts 2006, No. 481, §1, eff. Oct. 1, 2006; Acts 2016, No. 222, §1.