Definition
Payments a parent makes to help cover a child's living costs after a separation or divorce, set by a court or state formula based on income, custody time, and the number of children. It is not taxable income to the recipient and not deductible by the payer.
Why it matters
Child support is a legal obligation, not a negotiable bill: missed payments accrue with interest, can be garnished from wages and tax refunds, and can cost a driver's or professional license. For the recipient it is real budget income that lenders may count, and both parents need to plan for the day the order is modified or ends.
Example
A state formula sets support at $900 a month for two children based on the parents' combined $110,000 income and the custody split. The paying parent budgets $10,800 a year; when they receive a $15,000 raise, either parent can ask the court to recalculate, which could move the figure to about $1,000 a month.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.