1993 Iowa Acts ch. 79, § 48. This statutory amendment did not require the court to consider the noncustodial parent's obligation to support other children as if they were subject to a court ordered support obligation. McIntire v. Leonard, 518 N.W.2d 793, 795 (Iowa 1994); State ex rel. Reaves v. Kappmeyer, 514 N.W.2d 101, 103-04 (Iowa 1994); State ex rel. Hartema v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994). We have rejected attempts to use the guidelines chart that reflects the parties' children in the custodial parent's home and the children or stepchildren of the noncustodial parent.
The amount of support provided by the guidelines is presumed to be correct. State ex rel. Dep't of Human Servs. v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994). The guideline amount may however be adjusted upward or downward if the court finds an adjustment necessary to provide for the needs of the child and to do justice between the parties under the special circumstances of the case.
When a parent voluntarily reduces his or her income or decides not to work, it may be appropriate for the court to consider earning capacity rather than actual earnings when applying the child support guidelines. State ex rel. Dep't of Human Servs. v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994); State ex rel. Lara v. Lara, 495 N.W.2d 719, 721-22 (Iowa 1993). Before using earning capacity rather than actual earnings a court must however make a determination that, if actual earnings were used, substantial injustice would occur or adjustments would be necessary to provide for the needs of the child and to do justice between the parties.
Terry argues that the amendment requires child support paid for other children to be considered by the trial court. In State ex rel. Hartema v. Cottrell, 513 N.W.2d 765, 767-68 (Iowa 1994) (filed after submission of this appeal), we held that the amendment to section 598.21(4) was not directed at computation of specific allowances. Rather it is directed to the supreme court in our review of the guidelines.
The interpretation the court of appeals gave to amended section 598.21(4) and the procedure it used in applying the guidelines under its interpretation were incorrect. In a case decided after the court of appeals decision here, we held that the recent amendment to section 598.21(4) does not require the district court to alter the manner in which it computes net monthly income to account for a parent's support obligations that are not court-ordered. State ex rel. Hartema v. Cottrell, 513 N.W.2d 765 (Iowa 1994). We concluded that the legislature intended to direct our court to consider in our next review of the guidelines the fact that a parent may also be supporting other children.
When a parent makes an election not to work outside the home, it may be appropriate for the court to consider earning capacity rather than actual earnings when applying the child support guidelines. In re Marriage of Malloy, 687 N.W.2d 110, 115 (Iowa Ct.App. 2004); Nelson, 570 N.W.2d at 106; State ex rel. Hartema v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994); State ex rel. Lara v. Lara, 495 N.W.2d 719, 721-22 (Iowa 1993). Before using earning capacity rather than actual earnings a court we must make a determination that, if actual earnings were used, substantial injustice would occur or adjustments would be necessary to provide for the needs of the children and to do justice between the parties.
When a parent voluntarily reduces his or her income or decides not to work, it may be appropriate for the court to consider earning capacity rather than actual earnings when applying the child support guidelines. In re Marriage of Nelson, 570 N.W.2d 103, 106 (Iowa 1997); State ex rel. Hartema v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994); State ex rel. Lara v. Lara, 495 N.W.2d 719, 721-22 (Iowa 1993). Before using earning capacity rather than actual earnings a court must, however, make a determination that, if actual earnings were used, substantial injustice would occur or adjustments would be necessary to provide for the needs of the children and to do justice between the parties.
Id. The amount of support provided by the guidelines is presumed to be correct. State ex rel. Dep't of Human Servs. v. Cottrell, 513 N.W.2d 765, 768 (Iowa 1994). The guideline amount may however be adjusted upward or downward if the court finds an adjustment necessary to provide for the needs of the child and to do justice between the parties under the special circumstances of the case.