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Sample Calculations for Residential Credit Using The Betson Method and the Spring Method Child Support Schedule Workgroup July 24, 2008
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Factual Assumptions Child is 10 Assume Dad = NCP because his income is higher Mom net income $2000 Dad net income $3000 Dad = 60% of income Mom = 40% of income BCSO = 443 Dad, 295 Mom = 738 total
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The Betson Formula Residential credit = R x T x BCSO + (1 – S) x D x BCSO R = % of overnights with NCP T = proportion of the BCSO that is transferred between households when child changes residence (assume 40%) S = NCP % of net income D = duplicated expenses (assume 50%)
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Betson Formula for Residential Credit (R x.4 x BCSO) + [(1 – S) x.5 x BCSO]
![Betson Formula for Residential Credit (R x.4 x BCSO) + [(1 – S) x.5 x BCSO]](http://images.slideplayer.com/32/10063130/slides/slide_4.jpg "Betson Formula for Residential Credit (R x.4 x BCSO) + [(1 – S) x.5 x BCSO]")
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Betson Formula for NCP obligation [S x BCSO] – {[R x.4 x BCSO] + [(1 – S) x.5 x BCSO]}
![Betson Formula for NCP obligation [S x BCSO] – {[R x.4 x BCSO] + [(1 – S) x.5 x BCSO]}](http://images.slideplayer.com/32/10063130/slides/slide_5.jpg "Betson Formula for NCP obligation [S x BCSO] – {[R x.4 x BCSO] + [(1 – S) x.5 x BCSO]}")
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NCP Obligation when BCSO = 738 and NCP % of income = 60% (Betson).60 x 738 – {[R x.4 x 738] + [(1 –.60) x.5 x 738]} = 442.8 – [295.2R + (.4 x.5 x 738)] OR 442.8 – [(R x 295.2) + 147.6]
![NCP Obligation when BCSO = 738 and NCP % of income = 60% (Betson).60 x 738 – {[R x.4 x 738] + [(1 –.60) x.5 x 738]} = – [295.2R + (.4 x.5 x 738)] OR – [(R x 295.2) ]](http://images.slideplayer.com/32/10063130/slides/slide_6.jpg "NCP Obligation when BCSO = 738 and NCP % of income = 60% (Betson).60 x 738 – {[R x.4 x 738] + [(1 –.60) x.5 x 738]} = – [295.2R + (.4 x.5 x 738)] OR – [(R x 295.2) ]")
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Child 100% with Mom (Betson) NCP obligation $443 (no residential credit)
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Child 90% with Mom (Betson) NCP obligation = [.60 x 738] – {[.1 x.4 x 738] + [(1 –.60) x.5 x 738]}= 442.8 – (29.52 + 147.6) = 442.8 – 177.12 = $265.8
![Child 90% with Mom (Betson) NCP obligation = [.60 x 738] – {[.1 x.4 x 738] + [(1 –.60) x.5 x 738]}= – ( ) = – = $265.8](http://images.slideplayer.com/32/10063130/slides/slide_8.jpg "Child 90% with Mom (Betson) NCP obligation = [.60 x 738] – {[.1 x.4 x 738] + [(1 –.60) x.5 x 738]}= – ( ) = – = $265.8")
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Child 80% with Mom (Betson) NCP obligation =.60 x 738 – {[.2 x.4 x 738] + [(1 –.60) x.5 x 738]}= 442.8 – (59.04 + 147.6) = $236.16
![Child 80% with Mom (Betson) NCP obligation =.60 x 738 – {[.2 x.4 x 738] + [(1 –.60) x.5 x 738]}= – ( ) = $236.16](http://images.slideplayer.com/32/10063130/slides/slide_9.jpg "Child 80% with Mom (Betson) NCP obligation =.60 x 738 – {[.2 x.4 x 738] + [(1 –.60) x.5 x 738]}= – ( ) = $236.16")
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Child 70% with Mom (Betson) NCP obligation =.60 x 738 – {[.3 x.4 x 738] + [(1 –.60) x.5 x 738]} = 442.8 – ( 88.56 + 147.6) = 442.8 – 236.16 = $206.64
![Child 70% with Mom (Betson) NCP obligation =.60 x 738 – {[.3 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $206.64](http://images.slideplayer.com/32/10063130/slides/slide_10.jpg "Child 70% with Mom (Betson) NCP obligation =.60 x 738 – {[.3 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $206.64")
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Child 60% with Mom (Betson) NCP obligation =.60 x 738 – {[.4 x.4 x 738] + [(1 –.60) x.5 x 738]} = 442.8 – (118.08 + 147.6) = 442.8 – 265.68 = $177.12
![Child 60% with Mom (Betson) NCP obligation =.60 x 738 – {[.4 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $177.12](http://images.slideplayer.com/32/10063130/slides/slide_11.jpg "Child 60% with Mom (Betson) NCP obligation =.60 x 738 – {[.4 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $177.12")
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Child 50% with Mom (Betson) NCP obligation =.60 x 738 – {[.5 x.4 x 738] + [(1 –.60) x.5 x 738]} = 442.8 – (147.6 + 147.6) = 442.8 – 295.2 = $147.60
![Child 50% with Mom (Betson) NCP obligation =.60 x 738 – {[.5 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $147.60](http://images.slideplayer.com/32/10063130/slides/slide_12.jpg "Child 50% with Mom (Betson) NCP obligation =.60 x 738 – {[.5 x.4 x 738] + [(1 –.60) x.5 x 738]} = – ( ) = – = $147.60")
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The Spring Method Traditional “Cross Credit” Method Direct costs = BCSO x % of overnights % of overnights = R S = % of income Transfer payment = (S x BCSO) – (BCSO x R)
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Spring Formula for NCP obligation Transfer payment = (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R
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Child 100% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 0 = $443 (No residential credit)
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Child 90% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 73.8 = $369.00
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Child 80% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 147.6 = $295.20
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Child 70% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 221.4 = $221.40
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Child 60% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 295.2 = $147.60
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Child 50% with Mom (Spring) (.6 x 738) – 738R = 442.8 – 369 = $73.80
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Comparison – How Much Does Dad Pay? Percentage of Time Spent with Mom Dad Pays Under Betson Method Dad Pays Under Spring Method 100% with Mom 443 90% with Mom 265.80369 80% with Mom 236.16295.20 70% with Mom 206.64221.40 60% with Mom 177.12147.60 50% with Mom 147.60 73.80
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What if Mom makes more than Dad does? Scenario 1 (Betson) Assume R = 10% Transfer Payment =.4 x 738 – (.1 x.4 x 738 + (.6 x.5 x 738) = 295.2 – (29.5 + 221.4) = $44.30
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What if Mom makes more than Dad does? Scenario 2 (Betson) Assume R = 20% S x BCSO =.4 x 738 = 295.2 R x T x BCSO =.2 x.4 x 738 = 59.04 (1-S) x D x BCSO =.6 x.5 x 738 = 221.4 295.2 – (59.04 + 221.4) = $14.76
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What if Mom makes more than Dad does? Scenario 3 (Betson) Assume R = 30% S x BCSO – { R x T x BCSO + (1-S) x D x BCSO}.4 x 738 = 295.2.3 x.4 x 738 = 88.56.6 x.5 x 738 = 221.4 295.2 – (88.56 + 221.4) = -14.76 Should there be a negative residential credit?
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What if Mom makes more than Dad does? Scenario 1 (Spring) Assume R = 10% (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R = 442.8 – 73.80 = $369.00 Scenario 2 (Spring) Assume R = 20% (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R = 442.8 – 147.60 = $295.20
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What if Mom makes more than Dad does? Scenario 3 (Spring) Assume R = 30% (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R = 442.8 – 221.4 = $221.40 Scenario 4 (Spring) Assume R = 40% (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R = 442.8 – 295.20 = $147.60
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What if Mom makes more than Dad does? Scenario 5 (Spring) Assume R = 50% (S x BCSO) – (BCSO x R) = (.6 x 738) – 738R = 442.8 – 738R = 442.8 – 369.0 = $73.80 This formula works the same no matter which parent has the higher monthly net income.
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