We are constantly called upon to help parents calculate Child Support using the New Jersey Child Support Guidelines.   One of the most typical examples of errors in the calculation comes from not using the correct health insurance premium for the children.  In a typical divorce situation, one parent covers the the health insurance premium for the entire family (both parents and all of the children).  When the parties divorce the health insurance premium for the children is almost always an unknown because the family's current coverage covers everyone.  

When calculating child support in New Jersey, one of the key components is the cost of health insurance for the child. The New Jersey Child Support Guidelines require that the cost of health insurance attributable only to the child(ren) be included in the support calculation. This means determining the correct portion of the premium that applies specifically to the child(ren).  Below is a step-by-step guide on how to accurately determine the correct amount.

Understanding the New Jersey Child Support Guidelines

The New Jersey Child Support Guidelines are designed to ensure that children receive the financial support necessary for their well-being. Included in the calculation are factors such as income, childcare costs, medical expenses, and health insurance premiums. The parent responsible for providing health insurance is entitled to a credit for the portion of the premium that is attributable to covering the child.

Step 1: Identify the Health Insurance Plans Available

The first step in determining the correct health insurance premium for child support purposes is to understand the coverage options provided by the parent's employer. Most employer-sponsored health plans offer multiple tiers of coverage, such as:

• Single (Employee Only)

• Employee + Spouse

• Employee + Child(ren)

• Family (Employee + Spouse + Child(ren))

Since child support calculations require identifying the cost for the child alone, focus on the Single (Employee Only) and Employee + Child(ren) tiers.

Step 2: Obtain Cost Information from the Employer

The parent providing health insurance should request premium cost details from their employer's human resources (HR) department. Specifically, ask for the monthly or per-pay-period premium costs for:

1. Single (Employee Only) Coverage

2. Employee + Child(ren) Coverage

Most employers provide this information on benefits statements, HR portals, or open enrollment materials.  For court purposes it is best to get the cost structure in writing.  Often, an email from your companies HR department is sufficient. See Step 6 below.

Step 3: Calculate the Difference

Once the cost figures are obtained, determine the correct child support premium amount using the following formula:

Health Insurance Premium for Child(ren) = (Cost of Employee + Child(ren) Coverage) - (Cost of Employee Only Coverage)

For example, suppose an employer offers the following health insurance premiums:

• Single (Employee Only) Coverage: $150 per month

• Employee + Child(ren) Coverage: $300 per month

The portion of the premium attributable to the child(ren) is: $300 - $150 = $150 per month

This $150 amount should be entered into the New Jersey Child Support Guidelines worksheet as the health insurance premium paid for the child.

Step 4: Confirm the Allocation for Multiple Children

If the parent is covering more than one child, the full difference applies to all covered children. However, if the parent has multiple children from different relationships and only one is the subject of the support calculation, an additional step may be required.

To allocate the correct cost for one child, divide the total difference by the number of children covered: $150 (total child premium) ÷ 3 children = $50 per child

If only one child is covered under the child support order, $50 should be used as the health insurance cost in the calculation.

Step 5: Enter the Correct Figure into the Child Support Guidelines Worksheet

New Jersey provides a Child Support Guidelines worksheet that includes a section for medical expenses. The determined premium amount should be a weekly cost. If you are paid every two weeks and your company gives you the health insurance premium costs on a per pay period basis, you should divide your calculated amount by 2. 

The worksheet considers this expense when determining each parent's proportional share of the total support obligation. The parent paying the premium receives a credit, reducing their overall financial obligation accordingly.

Step 6: Ensure Proper Documentation

To avoid disputes or complications, it is important to maintain documentation supporting the health insurance cost calculation. This includes:

• Employer-provided benefits statement

• Payroll deductions showing premium payments

• Correspondence from HR confirming the cost breakdown

Having proper documentation ensures transparency and prevents disagreements about the premium's amount.

Step 7: Address Changes in Health Insurance Costs

Health insurance premiums change over time due to employer policy updates, inflation, or coverage modifications. Parents should regularly review their health insurance costs and update the child support order if necessary.

Changes that may require an update include:

• A significant increase or decrease in premium costs

• A switch in coverage (e.g., from employer-based insurance to a private plan)

• The addition or removal of a child from the plan

In such cases, a motion to modify child support may be required to reflect the updated insurance costs.

Conclusion

Determining the correct health insurance premium for child support calculations in New Jersey involves:

1. Identifying the employer's health insurance coverage options

2. Obtaining premium cost details from HR

3. Calculating the difference between Employee + Child(ren) and Employee Only coverage

4. Allocating costs appropriately if multiple children are covered

5. Entering the correct figure into the Child Support Guidelines worksheet

6. Maintaining documentation for verification

7. Monitoring changes in premiums and adjusting child support orders as necessary

By following these steps, parents can ensure accurate child support calculations and fair contributions toward their child's healthcare needs. Keeping up-to-date on health insurance costs and child support obligations will help avoid disputes and provide children with consistent, adequate medical coverage.

If you need help in calculating child support in New Jersey, contact the lawyers at DeMichele & DeMichele, P.C. and put their vast expertise to work for you.  (856) 546-1350.