Modifying Child Support After Job Loss in Tennessee

If your income circumstances have changed, you may be wondering how to modify an existing support order. In Tennessee, a job loss, income reduction, or income variability does not automatically reduce or cancel your child support obligations. According to Tennessee law, you will need to show a significant variance in income to qualify. To address any concerns regarding a support modification, speak with our Murfreesboro child support lawyer at The Law Office of David L. Scott.

Significant Variance is the Legal Standard

Custodial and non-custodial parents have a right under Tennessee law to request a review and adjustment of an existing support order. As previously discussed, a significant variance is required for an adjustment in child support, which requires a minimum 15 percent difference between the amount of the proposed order and the amount of the existing order. However, the standard drops to 7.5 percent for parents at or below the poverty level. This income variance suggests a material change in circumstances, often warranting an adjustment. Upon complete review, the modification may be performed judicially by the court or administratively by the Department of Human Services (DHS) or a local child support office. The adjustment could be due to any change in circumstances, with job loss only being one among several avenues to modify a support order.

Involuntary Job Loss Versus Voluntary Underemployment

Involuntary job loss, which may include layoffs, company closures, or disability, typically supports a modification when there is a disparity in income. In contrast, voluntary underemployment or quitting without good cause is closely scrutinized, and the court may impute income to the parent (calculating support based on what the parent could be earning rather than their reduced income) instead of simply denying the modification.

Tennessee law does not presume that a parent is willfully underemployed or unemployed; the court instead weighs factors such as the parent’s employment and education history, whether the reduction reflects a reasonable choice (such as pursuing further training that will ultimately benefit the child), and whether the parent’s lifestyle is inconsistent with their reported income.

Tennessee law also recognizes the role of a stay-at-home parent as valuable, and the court will consider whether the parent was a full-time caretaker before separation, how long they’ve been out of the workforce, and the age of the children before imputing income in that situation. However, incarceration is not treated as voluntary unemployment, with support obligations based on actual prison earnings.

What if the Non-custodial Parent Has No Reliable Income?

If the non-custodial parent has no verifiable or reliable income, the court will impute a figure based on the Tennessee Child Support Guidelines. A judge will base an imputed income figure on several factors, including a person’s past employment history, education, skills, training, age, overall health, and default income standards. Default income standards are based on the state’s median full-time earnings by gender. The current imputed gross income thresholds for female parents in Tennessee are $35,936, and for male parents are $43,761.

Practical Steps to Modify a Support Order

If you have experienced a job loss or reduction in income, you should file a petition to modify with the court that issued the original order or request an administrative review through the DHS Child Support Services. For active Families First/TANF cases, an administrative review automatically takes place every three years. Bear in mind that the current order remains enforceable until the court approves a modification, so you will need to continue payments as scheduled. Missed payments can result in wage garnishment, license suspension, or a forfeiture of your tax refund, which will continue until your modification petition is approved.

That is why our child support attorneys recommend filing a modification petition promptly following a change in circumstances. Unfortunately, minor income fluctuations or financial difficulties do not generally meet the criteria. To show the courts an ongoing change in income, you will want to work with our legal team.

Laid Off? Speak with Our Murfreesboro Child Support Attorney

The state of Tennessee only permits child support modifications when there is an income disparity between an old and existing support obligation. Minor financial struggles will not warrant an adjustment, with the court wanting to see a real, ongoing change in income. If you need legal guidance on how to handle a job loss or drop in income, our Murfreesboro child support lawyer is here to help. To arrange your free consultation, contact The Law Office of David L. Scott online or by calling (615) 896-7656 today.