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The Cost of Living Adjustment (COLA) is an automatic review and adjustment of child support orders enforced by probation. The COLA is based on the average monthly change in the consumer price index (CPI) for the New Jersey metropolitan area. The COLA is not considered a modification.
For one child, you take 17% of the parents' combined income, for two children you take 25%, for three children you take 29%, for four children you take 31% and for five children you take no less than 35% of the parents' combined income and this percentage amount represents the basic child support obligation.
This is decided by looking at something called the Consumer Price Index for urban areas (CPI-U), which is published by the federal government. There has to have been a change of at least 10% from the year of the most current order, or since 1994, whichever is later.
For a hypothetical example, if two parents have one child and jointly earn $1,000 per week, then the non-custodial parent must pay $233 in child support each week. If these parents had two children, the non-custodial parent would pay $257 per week.
The court looks at the combined net income of the parents and compares it to the average cost of raising a child in the county where the custodial parent will live. The judge adjusts this cost based on the amount of parenting time each parent has with the child during an average month.