Can You Be Ordered to Pay Child Support After Losing Custody in North Carolina? (Part 1 of 2)

Many parents assume that child support flows one way: from the parent who sees the children less to the one who has them most often.

Many also assume that a large, one-time withdrawal from their retirement account should be seen as “savings” rather than “income” and shouldn’t affect how much child support they owe. But it’s important to note where assumptions meet facts – especially in the court of law. Based on the 2024 North Carolina Court of Appeals decision, Sahana v. Fiscus (907 S.E.2d 784), assumptions can leave a parent owing far more money than they may have ever expected.

Note: Sahana v. Fiscus is an unpublished opinion and does not serve as legal precedent in North Carolina. The case and outcome are still useful in understanding how the courts approach child custody and child support issues.

Background of Sahana v. Fiscus

The parents involved in the case married in 2010, separated in 2016, and finally divorced in 2017. They had two children together. The mother originally filed for custody and child support, but over the next several years, custody shifted.

By September 2017, the father had primary physical custody of the children. By 2022, he had both primary physical and sole legal custody.

In July 2023, the trial court entered a child support order. Notably, since custody had moved to the father prior to the court’s action, the order ran against the mother.

The court ordered the mother to pay more than $88,000 in child support arrears – covering the years the father had primary custody. This amount included the children’s uninsured medical costs, as well as $775 per month going forward.

The mother appealed, but her appeal fell short when the court considered several financial actions and other arguments the mother brought forward.

Can a Parent Be Ordered to Pay Support After Losing Custody?

They can. Sahana v. Fiscus illustrates how in North Carolina child support follows the children. This means that when a parent who received support becomes the parent who pays it, the obligation can reverse. That means any unpaid support from earlier years can quickly build into substantial arrears.

In this case, the court calculated each parent’s income and expenses over several years. The court applied the standard North Carolina Child Support Guidelines for most years. However, when it came to higher-income years – in which the parents’ combined income exceeded the Guidelines’ limits – the court took a different course. They set support based on the children’s “reasonable needs” and each parent’s ability to provide for those needs.

In the end, the Court of Appeals found that the calculations were supported by the evidence and affirmed the judgment.

Do IRA Withdrawals Count as Income for Child Support?

One of the main obstacles the mother ran into was the issue of large withdrawals that were ultimately determined to be income. The trial court had treated two IRA withdrawals – $410,000 in one year and $200,000 in the next – as “income” when setting support.

Though she couldn’t argue the withdrawals, she did disagree with the court’s designation. But the Court of Appeals agreed with the trial court. Under the Child Support Guidelines, “income” means a parent’s actual gross income from any source – and that expressly includes retirement withdrawals. She had chosen to withdraw from her accounts, and that money ultimately counted as income when it came to support calculations.

This is an important lesson for anyone in the custody or support process: the definition of “income” for child support is broad in North Carolina. Pulling from a retirement account can raise what you owe.

Our next blog will focus on other matters raised by the mother, as well as the ramifications of Sahana v. Fiscus.