Charlie Sheen and Modifying Child Support
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Charlie Sheen’s self-proclaimed “WINNING” streak has seemingly come to an end.
Mr. “Adonis DNA” filed a motion to modify the court ordered child support payment for his two children with Denise Richards. Sheen claims in his motion a “significant reduction” in his earnings and a “dire financial crisis” warranting a modification to his monthly child support obligation.
At one point Sheen was the highest paid actor in television. Fast forward a few years and now Sheen claims to be “blacklisted” from Hollywood and unable to secure gainful employment.
Although Sheen’s income and resulting child support obligation is unique, his request to reduce child support based on a reduction of income is common.
In New Mexico, child support is calculated based on guidelines that consider the following elements: (1) Each parent’s time with the child, (2) Number of children, (3) The parties’ gross monthly income, (4) Work related child care expenses, (5) Health insurance premiums paid for the child.
WHAT ARE THE BIGGEST CHILD SUPPORT FACTORS IN NEW MEXICO?
The two factors that most heavily influence one’s child support obligation include the time that each parent spends with the child, and disparity in gross monthly income. In particular, parents that spend less than 35% of the time with the child (i.e. 128 days per year), are on a Worksheet A and are required to pay a higher percentage of child support based on the factors above.
HOW TO MODIFY CHILD SUPPORT IN NEW MEXICO
In New Mexico, one’s court ordered child support obligation can be modified by demonstrating that a “substantial change in circumstances” has occurred since the order was entered. Such a change is present if the gross monthly income changes to a degree that the child support obligation increases or decreases by 20%. In other words, the court can permit a modification to child support if a change to any of the factors above leads to the overall child support changing by 20% (e.g. a $100 child support obligation changes to either $80 or $120).
DOES CHILD SUPPORT AUTOMATICALLY CHANGE WHEN CIRCUMSTANCES CHANGE?
Child support is not automatically modified when the requisite 20% change occurs. Court ordered child support can only be modified back to the date that a Motion to Modify is filed.
In relation to Sheen’s situation, Denise Richards could potentially argue that Sheen is either underemployed or not working at his full capacity. In evaluating Richard’s potential claim, New Mexico courts would evaluate the evidence to determine if Sheen has “acted in good faith to earn and preserve as much money . . . as could reasonably be expected under the circumstances.”
Ultimately New Mexico courts would consider whether Sheen has acted in good faith, and whether Sheen’s actions are reasonable under the totality of the circumstances.
It remains to be seen if Sheen has filed a “WINNING” motion to reduce his child support obligation.
