How Is Child Support Calculated in Indiana?

If you're going through a divorce, separation, or paternity case in Indiana, understanding how child support is calculated is crucial for protecting both your children's welfare and your financial rights. This comprehensive guide explains Indiana's child support calculation process step-by-step.

Indiana's Income Shares Model Explained

Indiana uses the Income Shares Model to calculate child support, as established by Indiana Code § 31-16-6-1. This model is based on a simple but important principle: children should receive the same proportion of parental income they would have received if their parents lived together.

Rather than arbitrarily assigning a percentage of one parent's income, this model calculates the total cost of raising children based on combined parental income, then divides that responsibility proportionally between both parents.

Step-by-Step: How Indiana Calculates Child Support

Step 1: Determine Each Parent's Gross Income

The first step in the calculation is determining each parent's weekly gross income. Indiana's guidelines define gross income broadly to include:

• Wages and salary – Before taxes and deductions
• Self-employment income – After deducting ordinary and necessary business expenses only
• Bonuses, commissions, and overtime – Typically averaged over the past year
• Rental and investment income
• Social Security Disability benefits (SSDI)
• Unemployment compensation
• Workers' compensation
• Pensions and retirement income

Step 2: Apply Income Adjustments

Before calculating the basic support obligation, Indiana allows deductions for:

1. Prior child support orders – Existing support paid for other children
2. Spousal maintenance – Court-ordered alimony payments to another party

These deductions recognize that parents may have existing legal obligations that reduce their available income for this case.

Step 3: Calculate the Basic Child Support Obligation

Once you have both parents' adjusted weekly gross income, you add them together to get the combined weekly gross income. This combined income is then applied to Indiana's Child Support Obligation Schedule (found in the official guidelines) to determine the basic weekly support amount.

The guideline percentage varies by number of children:

• 1 child: Approximately 14.5% of combined income
• 2 children: Approximately 21.5% of combined income
• 3 children: Approximately 27.5% of combined income
• 4 children: Approximately 31.5% of combined income
• 5+ children: Approximately 35.5% of combined income

Step 4: Add Child-Related Expenses

Indiana recognizes that child support isn't just about basic living expenses. The following costs are added to the basic obligation:

• Health insurance premiums – The portion covering the children only
• Work-related childcare costs – Daycare, after-school care, summer programs necessary for parents to work or attend school
• Extraordinary medical expenses – Costs not covered by insurance
• Educational expenses – In some cases, costs for special education or private schooling

Step 5: Apply the Parenting Time Credit

One of the most significant factors in Indiana child support calculations is the Parenting Time Credit (PTC), detailed in Guideline 6 of the Indiana Child Support Guidelines.

This credit acknowledges that when the non-custodial parent (the one paying support) spends substantial time with the children, they incur direct expenses during that time—groceries, utilities, entertainment, transportation, etc.

How the credit works:

• 0-51 overnights per year: Little to no credit applied
• 52-127 overnights: A modest credit begins to reduce the obligation
• 128-182 overnights: Substantial credit applied, significantly reducing payments
• 183+ overnights: Parent may be considered custodial, potentially flipping the support obligation entirely

Step 6: Determine Each Parent's Share

The total obligation (basic support + expenses - PTC) is then divided between parents based on their proportionate share of the combined income.

Example:

• Parent 1 earns $600/week
• Parent 2 earns $400/week
• Combined income: $1,000/week
• Parent 1's share: 60%
• Parent 2's share: 40%

If the total weekly obligation is $250, Parent 1 would be responsible for $150 (60%) and Parent 2 for $100 (40%). The parent with less parenting time pays their share to the other parent.

Real-World Example

Let's walk through a complete calculation:

Scenario:

• Parent 1 (non-custodial): $800/week gross income, 52 overnights/year
• Parent 2 (custodial): $500/week gross income
• 2 children in the case
• Parent 2 pays $50/week for health insurance covering children
• Childcare costs: $100/week

Calculation:

1. Combined income: $800 + $500 = $1,300/week
2. Basic obligation (2 children, ~21.5%): $280/week
3. Add expenses (insurance + childcare): $280 + $50 + $100 = $430/week
4. Apply PTC (52 overnights = modest credit): -$25/week
5. Net obligation: $405/week
6. Parent 1's share (61.5%): $249/week
7. Parent 1 pays Parent 2: approximately $249/week

Important Considerations

Court Deviations

While Indiana courts generally follow the guideline amounts, judges can deviate from the calculated amount under Rule 3 when there are specific, documented reasons, such as:

• Special medical, educational, or other needs of the child
• The standard of living the child would have enjoyed if parents stayed together
• Physical or emotional condition and needs of the child
• Educational opportunities for the child

Imputed Income

If a court determines that a parent is voluntarily unemployed or underemployed (working below their earning capacity), the judge may impute income—assign an income amount the parent could reasonably earn based on education, work history, and available job market.

Common Questions

Does a new spouse's income count?

No. Per Indiana Child Support Guideline 3(A), a new spouse or domestic partner's income is not included in child support calculations. The obligation is based solely on the biological/adoptive parents' income.

What if I'm self-employed?

Self-employment income is counted, but only after deducting ordinary and necessary business expenses. Personal expenses, depreciation beyond actual cost, and excessive business expenditures are not deductible. You'll need to provide tax returns, profit/loss statements, and potentially other financial documentation.

Can we agree to a different amount?

Yes, parents can agree to deviate from the guidelines, but a judge must approve it. The court will only approve if convinced the children's needs are adequately met and the deviation serves the child's best interest.

Next Steps

Understanding how Indiana calculates child support is essential, but getting an accurate estimate for your specific situation requires using the official calculation tools:

1. Get a Quick Estimate: Use our free Indiana child support calculator for an instant approximation
2. Official Calculation: For court filings, use the Indiana Judicial Branch Official Calculator
3. Consult an Attorney: For complex situations (self-employment, imputed income, deviations), consult a qualified Indiana family law attorney