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'Double Dipping' Rejected in Calculating Child Support

BY Leigh Jones
May 01, 2003

Finding a lack of authority on the issue of “double dipping” in child support awards, Justice Robert A. Ross of the Nassau County Supreme Court found in a case decided earlier this year that the public policy against “miscalculations” in distributive awards demanded that the amount the husband paid the wife for his enhanced earnings capacity could not be computed as part of his income in determining his child support payments. Goodman v. Goodman, 201099-00. Justice Ross' decision also held that since the enhanced earnings capacity award should not be calculated as income for the husband in the case, the portion going to the wife must be determined as her income for purposes of determining a child custody award. The double-dipping issue arises when courts, in determining the amount of child support a non-custodial spouse owes, do not exempt from the non-custodial spouse's income the amount he or she must pay out in an enhanced earnings capacity award to the custodial spouse.

In reaching his decision, Justice Ross turned to two court of appeals cases, which held that enhanced earnings capacity could not be used in calculating maintenance awards. Although McSparron v. McSparron, 87 NY2d 75, and Grunfeld v. Grunfeld, 94 NY2d 696, did not specifically include child support in their ban against double-dipping, Justice Ross reasoned that the cases' general warnings for courts to guard against duplication in maintenance awards warranted his finding.

New York state courts apply the doctrine of enhanced earnings capacity, which is recognized by only a few jurisdictions, to divorcing spouses who have earned a degree, professional license or other income booster during the life of the marriage. The source of much expert testimony and litigation in divorce actions, enhanced earnings capacity is intended to distribute fairly the boosted future income, computed up to retirement age, which the non-titled spouse in some way assisted the titled spouse in obtaining.

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