SB 343: California’s 2025 Child Support Formula –
If you’re a high-earning parent in Los Angeles, the state’s new child support guidelines could significantly impact your finances. At Hayat Family Law, we’ve been decoding these changes for executives, entertainers, and entrepreneurs across Southern California. Here’s what the 2025 updates mean for your wallet—and how to protect your interests.
What’s Changed Under SB 343?
California’s revised formula now:
– Reduces support for parents earning $20k+/month (new “K factor” cap)
– Considers shared parenting time more heavily (50/50 custody pays differently)
– Adjusts for private school/extraordinary expenses separately
Shocking Example: A Santa Monica tech CEO saw his support drop $3,200/month under the new calculation.
3 Hidden Ways This Impacts LA Parents
1. Bonus & Stock Income Treated Differently
– Only base salary counts for initial calculation
– Bonuses/RSUs now handled through “add-on” orders
– Requires meticulous payroll documentation
2. The 50/50 Custody Loophole
Parents with equal time may pay:
– $0 support if incomes are within 15% of each other
– Reduced payments if higher earner provides health insurance
3. Private School Justifications
Courts now demand proof:
✅ Child attended pre-divorce
✅ Demonstrated academic benefit
✅ Not primarily for tax advantages
Industry-Specific Scenarios We’re Handling
Entertainment Professionals
– Residual payments classified as irregular income
– Touring/performer expenses potentially deductible
Physicians & Surgeons
– Call pay/night differential often excluded
– Malpractice insurance costs now considered
Real Estate Developers
– Deal-based earnings require 3-year averaging
– Depreciation add-backs can increase obligations
How We’re Fighting Unfair Calculations
Our legal strategies include:
1. Lifestyle Analysis (Proving pre-divorce spending patterns)
2. Forensic Accounting (Uncovering hidden income streams)
3. Creative Structuring (Trusts for direct tuition payments)
Recent Win: Reduced a producer’s support by 42% by proving his “$3M/year” income included one-time project bonuses.
5 Must-Do Steps for High-Earners
1. Get Paystub Audits (Identify excludable income)
2. Document All Child Expenses (Apps like OurFamilyWizard help)
3. Negotiate Health Insurance Terms (Employer subsidies matter)
4. Update Beneficiary Designations (Especially for life insurance)
5. Consider Mediation (Avoid judge’s rigid formula)
Don’t let an outdated support order drain your finances. Call (310) 917-1044 for a personalized SB 343 assessment.
