H – Norway

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Part 1: Description of the Child Support Model

A. Overview

In Norway, the Children Act of 1981356 regulates the legal relationship between children and their parents, including the establishment of child support. A parent's obligation to maintain their child is clearly outlined in the Act357 and requires them to bear the expenses of maintaining and educating their child according to the child’s ability and aptitude and the parent’s financial circumstances, when the child himself or herself does not have the requisite means. Both parents have a mutual obligation to contribute what is necessary, each according to his or her ability.

The Act358 states that if one of the parents, or both parents do not live with the child, the parents are obligated to pay for the upbringing and education of the child. The following objectives are to be met:359

• The need for resources shall be shared between the parents after an assessment of each parent’s economic capacity and their ability to provide;
• The rules shall encourage continued care of both parents; and
• Provision must be made for the arrangements of private agreements for child support.

In 1989, standardised guidelines360 came into effect to replace the discretionary system that was in place to determine child support.361 The intent was to simplify the method of determining child support using a fixed percentage of income model. The application of the 1989 guidelines required information on three factors:

• The income of the paying parent;
• The number of children the paying parent was financially responsible for; and
• The financial obligations for any other biological children the paying parent may be responsible for.

A child support amount362 was determined by applying a fixed percentage to the paying parent’s363 income. These percentages were:

• 11 per cent of the gross income for one child;
• 18 per cent for two;
• 24 per cent for three; and
• 28 per cent for four or more children.

If the paying parent had additional biological children with a new partner, their financial liability was to be divided equally between the children. No allowances or financial deductions from the gross income of the paying parent were made for relevant stepchildren.

In 2003, the model underpinning the guidelines changed from a fixed percentage of income to an income shares model.364 Under the current legislation, the following four factors are considered in the formula calculations:

• The gross income of both parties;
• The costs of raising children;
• The amount of time the paying parent spends with the child; and
• An assessment of the ability of the paying parent to pay the child support amount.

Furthermore, the actual costs of children are used as the starting point for the assessment. Estimates of costs are found in the “standard family budget” developed by the National Institute for Consumer Research (Statens Institutt for Forbruksforskning, SIFO)365, which estimates the expenditure for a family with a “reasonable” living standard. An amount which represents a child benefit, and tax deductions for childcare are to be deducted from these estimates, since these expenses are covered by the state rather than by the custodial parent. Estimates for housing expenditures as well as costs for childcare are also included in the “standard family budget” amount.

The following briefly describes how Norway administers their Child Support Model.

Under the Directorate of Labour and Welfare (NAV) there are two entities responsible for child support.

The first is the NAV Family Benefits and Pensions. As the central authority for the determination and administration of child support, their overall mandate is to assess and make an administrative decision on how much child support the paying parent is required to pay to the receiving parent. It should also be noted that NAV has the authority to recognize foreign orders.

The second relevant entity in Norway is the Collection Agency of the Labour and Welfare Administration. Their mandate is to collect the child support amount on behalf of the receiving parent for both national and foreign orders in Norway. As well, they are the Requesting Agency for collection abroad.

Lastly, Norway has a unique approach to the manner in which they link child support and social benefits. Under legislation entitled the Advance Payment of Maintenance Act of 1989,366 Norway can advance payments of unpaid support to the receiving parent living in Norway. It is an amount that can be paid on certain conditions when the child support is not paid on time, or when it is less than the receiving parent would be entitled to in social benefits. To receive advance payments for a child under the age of 18, there are certain criteria that must be met:

• The child must live with the parent permanently;
• The child cannot live with both parents, the custodial parent can be either single or living together with someone other than the mother / father of the child; and
• The child support payments must be collected through NAV, because NAV must receive reimbursement from the child support for the advance payments of child support.

If the above criteria are met, the parent with whom the child resides may receive advance payments (on behalf of the child) of child support up to and including, the month he or she turns 18. The advance payments of child support are means-tested with the amount of the advance payment of child support depending on how much the receiving parent earns, the number of children and whether they live alone or have a co-habiting partner.367

B. How Can Parents Obtain a Child Support Award?

For parents to obtain child support, they may either enter into a private agreement on child support or apply for the calculation to be completed by NAV. In special cases the court can also establish child support.

• Private Agreement: Parents may enter into a private agreement on child support without involving NAV. The use of the guidelines are discretionary and parties may use them as a tool in their decision making process. If both parties agree to a child support amount, the agreement is as binding as a decision by NAV. Also, by entering into a private agreement, parents do not need to pay a fee to NAV. Although the agreement is private, the parents may decide to have the maintenance payments collected and forwarded by NAV. They must then submit an agreement together with an application for collection of child support payments. Collection by NAV is free of charge. If the receiving parent receives an advanced support payment, the child support must be administered by NAV.
• NAV - Family Benefits and Pensions: If the parents cannot agree to a child support amount, or either party decides they do not want to negotiate a private agreement, either party can apply to have the amount of child support determined by NAV. In making their determination, NAV will use the guidelines, as they are mandatory. Once NAV has determined the relevant child support amount based on the information both parties are required to provide NAV make a decision. Both parties are given the opportunity to appeal the decision and provide additional relevant information. NAV uphold or alter the decision made.

C. How the Formula Works

To assist parents in determining the relevant child support amount, an online calculator tool is available. It is developed by NAV and is referred to as the “Contributions Calculator”.368

Included in Part 2 of this Summary Report are further details on the specific elements and relevant detailed calculations contained in the formula. However, to assist the reader in understanding the overall approach and elements considered in the formula calculations, a high-level summary of the six steps are as follows:

Step 1 - Determine the Personal Gross Income for each parent and calculate their respective share of their Combined Personal Gross Incomes

In this calculation the gross income amounts for each parent are established. This amount is called their Personal Gross Income. These two amounts are then added together. Then, each parent’s Distribution Percentage is calculated by determining their respective share of their combined Personal Gross Incomes.

Step 2 - Determine the Maintenance Cost for the child

This calculation is completed by adding all the children’s “consumption” costs together and subtracting any child benefits. The result is an amount entitled the Maintenance Cost.369

Step 3 - Determine each parent’s share of the Maintenance Cost

This amount is calculated by multiplying the paying parent’s Distribution Percentage by the Maintenance Cost amount.

Step 4 - Determine the Togetherness Amount

In this calculation the Togetherness Amount is determined by consulting a lookup table that sets out various categories of percentage time that the parent spends with the child, taking into account the age of the child. Using this table, a Togetherness Amount is determined.

Step 5 - Determine the Final Guidance Amount

The paying parent’s share of the Maintenance Cost is then adjusted to reflect the percentage of time the child is in his/her care. This calculation consists of subtracting the Togetherness Amount from the paying parent’s final share of the Maintenance Cost amount. The result is an amount called the Final Guidance Amount.

Step 6 - Determine the Monthly Contribution Capability

Finally, a check on the paying parent’s ability to pay is conducted. A Monthly Contribution Capability amount is calculated by subtracting a number of items from the income of the paying parent. These items are amounts for: Social security tax, tax deductions, the paying parent’s own maintenance costs and building expenses, and if applicable, costs to maintain their children in their own household.  

The resulting amount is then compared to the paying parent’s share from Steps 5 above. The lower of the two amounts is determined to be the Final Guidance Amount.

Included in Appendix B are two case scenarios that will allow the reader to more fully understand the calculations required in the Norway Guidelines.

Part 2: Elements of the Child Support Model

A. Data Source Used to Determine Expenditures on the Children

How are expenditures for the child determined?

A key component of the determination of child support in Norway is a calculation that determines the expenses for the child that is then prorated between the two parents. The calculation to determine the expenses on the child is called the Maintenance Cost. The Maintenance Cost consists of fixed expenses for the children that increase with the age of the child. There are five fixed expense categories based on the age band the child falls within and for whom child support is being determined. The five age bands are: 0-5 years of age, 6-10 years, 11-14 years, 15-18 years, and 19 years and older.

The types of expenditures that are included in the Maintenance Cost amounts are comprised of three categories of expenses for the child:

1. Consumption expenses: These expenses consist of:
• Individual expenses: Food and drink, clothing and shoes, health and hygiene, play and leisure, infant equipment (only the youngest age group);
• The child’s share of household-specific expenses: relevant groceries, household items, furniture, telephone and media use, video costs etc.; and
• The child’s share of transportation expenses: These expenses are comprised of the predetermined costs to maintain a car and expenses for the use of public transport. This category does not include costs pertaining to transport in connection with activities that are “social” in nature.
2. Building expenses: Included in these expenses are the child's share of the housing costs. These expenses are set as a fixed amount, based on the average actual consumption expenditures according to Statistics Norway's consumer surveys. The following expense items are included: interest on loans, rent, insurance, fees, maintenance, light and fuel. Loan deductions are not included.
3. Supervision expenses: This category of expenses pertains to the costs of childcare such as kindergarten, day care, and school leisure schemes for 11 months of the year (one month is free of charge and is often a holiday month).

The expenses are based on general consumption expenses. Both the individual-specific and the household-specific expenses are determined on the basis of a reference budget for consumption expenditures designed by the National Institute for Consumer Research (SIFO).370

How are the expenditures reflected in the formula calculations?

The expenses outlined above, i.e. consumption, building and supervision, are embedded in the online calculator. The parents may either use these expenditures provided by SIFO in the online calculator or, if they are entering into a private agreement, they may substitute their own amounts of expenditures on the child within their agreement.

In either method, all amounts are totalled, and the standard child benefit is subtracted to produce the Maintenance Cost for each child.

B. Approach Used to Apportion the Amount that the Two Parents will Share

The apportioning method used in the Norway child support model is an income shares approach. It requires the calculation of the Distribution Percentage for the paying parent that is based on the paying parent’s share of the parents’ combined annual gross incomes.

For example, in straightforward cases where the paying parent spends less than two nights a month with the child and that parent lives alone, the Maintenance Cost is multiplied by the paying parent’s Distribution Percentage to produce the Final Guidance Amount.

C. Accompanying Policy/Legislation (Rules)

i) Determination of income for child support purposes371

Norway calculates the income available for the determination of child support by starting with the determination of each parent’s Gross Personal Income (wages, salaries, etc.) plus any net capital income in excess of NOK 10,000.372 This amount is termed the Contributor’s Income for the paying parent and Beneficiary's Income for the receiving parent.

The calculation of the income for each party includes:

• Gross personal income, for example: annual income from employers including holiday pay, overtime payment and other supplements, and taxable benefit from insurance, use of car, telephony and media;
• Funding for healthcare, directors' fees, private pension and insurance payments;
• Positive net capital income exceeding NOK 10,000, for example: dividends, interest income and sale of real estate;
• Benefits from NAV that are taxable, for example: sickness benefit, unemployment benefit, work allowance, disability benefit, transitional benefit; and
• Other benefits from NAV that must be counted for the recipient of the allowance: cash benefit for the child with child support, extended child benefit and extra child allowance.

The Beneficiary’s (the parent who receives the child support on behalf of the child) income is calculated in the same manner as the paying parent. However, amounts for certain income sources are added, if applicable. These are: extended child benefits received, extra child allowance, and the benefit of any special allowances provided by the state for a single parent.

Finally, if the child has income higher than a certain amount (30 times the full monthly advance payment), then it is included in the total combined income of the parents.

NAV may, notwithstanding the duty of confidentiality, demand that it be provided with all necessary information from employers, the tax authorities, the Norwegian Labour and Welfare Service and from insurance companies, banks and others who safeguard or manage assets.373

ii) Income estimation374

NAV has discretion to attribute income to either parent if they are of the view that the amount of income that they are claiming is lower than what is reasonable based on their earning potential. NAV will use their discretion in determining their income and will base it on what the parent could have potentially earned in income.375

iii) Custody and parenting time376

The amount of overnight time that the child spends with the paying parent is an element that reduces the Maintenance Cost for the child.

The amount of overnight time spent with the parent is classified into five categories. These categories are called Collaboration Classes.377 Each Class is based on the number of nights in a month the paying parent spends with the child. Furthermore, each of the classes is further broken down into five age categories. Thus, the deduction is determined based on the age of the child and the extent of the Togetherness. For each category of Class and age of child, a cost is set. This cost is called a “Togetherness Amount”.

The following expenses are included in the Togetherness Amount:

• Food and drink;
• Health and hygiene;
• Play and leisure;
• Transportation; and
• Building expenses (for collaboration classes 03 and 04 only).

Any travel expenses incurred in meeting the child are not included in this calculation.

Norway provides parents with the following lookup table to determine the paying parent’s Togetherness Amount. The table displays the Togetherness Amount until July 1st 2019 based on the number of nights or days per month the paying parent spends with the child and the age of the child.

The Togetherness Amount is subtracted from the Maintenance Cost to obtain the Final Guidance Amount.

Shared residence378

When the child has a shared residence, the child lives with both parents and has two addresses. Shared residence is not the same as the child having contact with each parent half the time. Shared residence means that the larger decisions about the child's daily life are taken jointly by the parents. In order for NAV to base its agreement on a shared residence agreement, it must be documented in writing.

When the child has a shared residence, it is assumed that both parents have equal expenses for the child. The one with the lowest income can request child support from the other parent.

When calculating the contribution, it is based on the costs of the child in the relevant age class. This expense is to be shared between the parents according to their proportion of combined income, so that it shows how many percent of the maintenance cost each parent should cover. Since the paying parent already covers half by the child living there, half the child’s costs are subtracted from their share of the costs using their proportion of combined income to arrive at the Final Guidance Amount.

iv) Special expenses379

Limited special expenses are eligible for consideration to establish an extraordinary child support decision. The documented amount is in such cases shared proportionally between the parents. Examples include the cost of braces, glasses and lenses. Not included are other special expenses such as the cost of recreational activities including sports equipment, musical instruments or travel. The parent who incurs these expenses may apply to NAV to have them considered in the determination of an extraordinary decision.

v) Concept of undue hardship 380

As part of the formula (and the online calculations), an assessment of the ability of the paying parent to pay the Final Guidance Amount is the last step in the calculation of child support. The purpose of this assessment is to ensure that paying parents have the ability to pay the applicable child support amount, and at the same time, have enough funds left to support themselves and any other children for whom they are legally liable and that reside in their household.

The assessment includes a number of eligible deductions from the paying parent’s gross income. The deductions are amounts for: the social security tax, any tax requirements, expenditures on their own “maintenance” (equivalent to a self-support reserve), their own building expenses, and, if applicable, an amount for any dependent children living with them. The result is an amount that is called the paying parent’s Monthly Contribution Capability. This Monthly Contribution Capability amount is compared to the paying parent’s Final Guidance Amount. Whichever amount is less, becomes the Final Guidance Amount.

vii) Updating of child support amounts and/or other circumstances that could be considered that may result in a variation to the formula amount

Updating of amounts: 381 All fixed maintenance payments to children are index-linked pursuant to the provisions of Section 73 of the Child Support Act 1981 unless otherwise determined in the decision or the agreement. Indexation is linked to any change in the Consumer Price Index issued by Statistics Norway. The Final Guidance Amount is adjusted each year on the basis of the change in the Consumer Price Index amount for the month of January compared to the Consumer Price Index amount at the time of the previous adjustment. Each adjustment applies to maintenance payment instalments effective from July 1st.

Other dependent children living with paying parent: If the paying parent pays child support to multiple receiving parents and does not have enough income to pay all the contributions, the other child support amounts may be reduced.

Variations: A claim may be made to modify child support payments determined by an administrative body, if there are special reasons for doing so. The reasons can be as a result of a change in the age of the child, a change in income, residence or time spent with the child.

viii) Other considerations

Age of the child: By statute, child support decisions terminate the month the child turns 18. An extension for child support beyond the age of 18 requires that the child attend secondary school. When the child turns 18, the child becomes a legal party to the proceedings and they must put forward any claim for support. Attendance at a university normally does not qualify for a consideration of child support.

Minimum support: There is no minimum support amount.

Maximum support: There is no fixed “maximum” amount of child support, however, as outlined above, the formula calculations include a limit on the amount of child support based on the paying parent’s ability to pay. There are also two other “limits” that can be considered. These are: the paying parent shall not pay more than 5/6 (or 83.3%) of the Maintenance Cost of the child nor shall they pay more than 25% of the calculated gross income before any allowance.

Part 3: Summary of Key Changes to the Child Support Guidelines Legislation

A. Overview of the Changes

In 1981, the Children Act of 1956 was replaced by the Children Act of 1981. The intention of the 1981 Act was to provide for a total “child-free” place for children born in and outside of marriage. The law was intended to promote equality between children born in and outside marriage, equality between the parents of the child, and to strengthen the independence of the child in relation to their parents.382

Up until 1989, the calculation of child support was determined at the discretion of the court. However, in 1989, in an effort to allow parents to ascertain the amount of child support without having to necessarily appear before a judge, child support guidelines were introduced. Under the Children Act of 1981, the relevant child support amount was determined as a fixed percentage of the paying parent’s income.

In 1992, the responsibility for establishing and collecting child support amounts was transferred from the Municipal Contribution Services to the National Insurance Service (NAV). The objective of the transfer of tasks to NAV was to improve the efficiency of distributing payments and to provide better service to the parents, who often receive benefits from a social security reporting office. As well, NAV was the same body that administered the pension scheme and social security benefits making the delivery of services needed by separating/divorcing parents more seamless. As of 2006, NAV was given the authority to not only establish and collect child support amounts but also to recognize foreign child support decisions. Thus, no child support orders are required to be registered with the courts.383

In 2003, further changes were made to Norway’s Child Support Model. Most importantly, the model underpinning the guidelines changed from a fixed percentage to an income shares model. The rationale for the change was that family circumstances had changed since the initial implementation of a formula in 1989 (a fixed percentage model). In Norway, societal changes have resulted in a “more equal” division of labour between parents resulting in greater wage parity and a greater emphasis was placed on the continued joint responsibility/management of the children.384

In 2009, based on the results of an evaluation385 that examined the child support legislation, further amendments were made that so that NAV automatically adjust the child support amounts when the child changed age groups in National cases.

B. Overview of Leading Case Law on the Child Support Model

There is no leading case law in Norway on child support that had a significant impact on their child support model or its rules.

Part 4: Summary of the Literature that Assesses the Model

There has only been one evaluation386 conducted to examine the effectiveness, fairness or efficiency of the Norway Child Support Model. As noted earlier, this evaluation has resulted in several changes to the current approach to determining child support amounts. In addition to this evaluation, a review of the available literature on the advantages and disadvantages of the Norway model revealed the following:387

A. Advantages

• None noted.

B. Disadvantages

• The assumptions underpinning the “costs of children” are unclear. The SIFO budget standards are made to cover a “reasonable” level of consumption, defined as “a level acceptable to most people”. They fulfil common standards of health and nutrition and enable full participation in common leisure activities for all members of the household. While policy makers have clear opinions about the gendered division of labour, their assumptions about costs of children are far less well founded. Children of parents living apart shall have a “reasonable” standard of living, which keeps them fed and healthy and allows them to participate in low-cost leisure activities, but the “costs of children” amounts do not accommodate the needs of children who take part in more expensive activities.388

Part 5: Selected Case Scenarios using Norway Guidelines

The following table provides the outcomes from two case scenarios that illustrate the formula assessment. These cases have been calculated using NAV’s online calculator.

All dollar amounts are in $NOK and converted to $CDN where convenient.

Case Scenario 1: Two parents, Fred and Jane, separate. They have one child, Sally. She is under the age of 12. Fred has no regular overnights with Sally as he lives a considerable distance away. There are no other expenses for Sally. Fred makes NOK 329,100 per year (approximately $50,000 CDN per year) and Jane makes NOK 200,000 per year (approximately $30,000 CDN per year).

Case Scenario 2: Two parents, Martin and Julie, separate. They have one child – Emma. She is under the age of 12. Martin has regular three overnights per month with Emma. Julie has monthly childcare expenses (“supervisory expenses”) for Emma of NOK 2 278 per month. Martin has a new family and a dependent child, Neil, aged 2 whom he lives with 100% of the year. Martin makes NOK 658,700 per year (approximately $100,000 CDN per year) and Julie makes NOK 200,000 per year (approximately $30,000 CDN per year).

Appendix A: References

Bekkali, Floor de Jongh. Child Support Procedures in Norway, Recovery of Maintenance in the European Union and Worldwide. Heidelberg Conference, March 5-8, 2013. https://www.childsupport-worldwide.org/tl_files/downloads-abstracts/abstracts-ab-3-3-2013/Presentation_Bekkali_Rustad_final.pdf

Consumption Research Norway. “Reference Budget for Consumer Expenditures.” http://www.hioa.no/eng/About-HiOA/Centre-for-Welfare-and-Labour-Research/SIFO/Reference-Budget-for-Consumer-Expenditures

Norway. The Children Act 1981. https://www.regjeringen.no/en/dokumenter/the-children-act/id448389/

Norway. Royal Crown for the Purpose of Children and Working. Evaluation of the New Legislation on Children’s Contributions, Report No. 19 (2006-2007) (translated).

Norway. The Norwegian Labour and Welfare Service. The Circular Main No. 55, No. 2 — Act Relating to Children and Parents Chapter 8 and 9 General Part, National Insurance Service (NAV) Family Office, 2002. Last amended 30.05.2016.

Skevik, Anne. Family Policies in Norway: Third report for the project “Welfare Policy and Employment in the Context of Family Change”, drafted for the meeting 5-6 June 2003 in Reykjavik, Iceland, Revised July 2003. https://www.researchgate.net/publication/239570482_Family_Policies_in_Norway

Contact Person
Siri Risnes. Senior Advisor
Directorate of Labour and Welfare
The Norwegian Labour and Welfare Service

Appendix B: Two Case Scenarios

Case Scenario 1: One child, no shared care

Based on registered information, the maintenance cost and the basis for the proportional distribution are calculated.

The distribution ratio is calculated by the ratio between the recipient's income and the recipient's (and possibly the child's) income.

Distribution percentage: 62.2 %

The contribution cannot be set higher than 5/6 (83.3%) of the maintenance cost.

Case Scenario 2: One child, one dependent child for contributor, and 3 overnights/month for contributor

Based on registered information, the maintenance cost and the basis for the proportional distribution are calculated.

The distribution ratio is calculated by the ratio between the recipient's income and the recipient's (and possibly the child's) income.

Distribution Percentage: 76.7 %

The contribution cannot be set higher than 5/6 (83.3%) of the maintenance cost.

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