2004 Michigan Child Support Formula Manual

1 2004 MichiganChild Support FormulaManualFriend of the court BureauState court administrative OfficeLansing, Michigan 2004 MichiganChild Support FormulaManualEffective: October 1, 2004 Friend of the court BureauState court administrative OfficeMichigan Hall of Box 30048 Lansing, Michigan 48909 TABLE OF CONTENTSC hanges to the Child Support Formula ManualiiPREFACEiii1.. of this Formula .. of and Deviation from the Formula .. to Investigate and Petition for Involving Threshold for Modification .. Order with Multiple 52. DETERMINING NET and Variations in Net Income .. s and Second Security Benefits .. Compensation/Individual Retirement Account (IRA).. and One-Time and Low Income Producing Tested Income .. of Income .. Considerations in Determining Income (Including Self-Employed Persons,Business Owners, Executives, and Others).

2 Deductions from Gross Income .. Support Parte and Temporary Orders .. Minor Children .. 213. CALCULATING Child Support Support of Child Support in Low/No Income Child Support Using Support of Child Support in High Income Economic Time Support Care and Medical Care Support .. 374. OTHER Party Custodians .. Custody Arrangements For Different Children .. Guidelines .. Order Proration and Conversion .. 47iiChanges to the Child Support Formula Manual2004 Formula Manual ChangesMCSF Section ChangeallManual contents reorganized into the new citation converted to reflect changes from weekly to monthly section on citation of the Formula Manual section on the definition of Support (D)New subsection on deviation criteria threshold for modification updated to $25 per base Support amount updated to $25 per (F)(29) (A)(1)Alimony or Spousal Support between parties in the case no longer countedas income nor allowed as a deduction from income.

3 (C)Amended to clarify that noncustodial parent Social Security benefitsreceived by children are to be counted as that parent s considerations in determining income clarified to include (E)Health insurance premiums paid for parent s other children are to bededucted from net obligation includes amounts calculated for base Support , ordinarymedical expenses, and Child care Support Tables updated with February 2004 CPI-U (A)Updated with the 2004 DHHS Poverty care and medical expense section significantly changed andexpanded. Includes new definition of health care, remedial care, ordinaryexpenses, and extraordinary expenses. Requirements added regardingdetermination of the responsibility to insure. Changed how reasonable costof healthcare coverage is determined. Added payment of ordinaryexpenses to obligation.

4 (B) Child care expense apportionment percentage made uniform with healthcare (B)(2)Arrearage Guideline updated to but not less than $80 per month. reference to statutory deviation requirement to agreements related toproperty SCAO policy on prorating and converting Added Percentage of Income Support Schedules based on economic and monthly order to be published as a supplement to the Manual . 2004 Michigan Child Support Formula MANUALiiiPREFACEThe Michigan Friend of the court Act of 1982 and the Federal Child Support EnforcementAmendments of 1984 require the State court administrative Office s (SCAO) Friend of the CourtBureau to develop "a Formula to be used in establishing and modifying as a guideline inrecommending a Child Support amount. The Formula shall be based upon the needs of the Child andthe actual resources of each parent.

5 " MCL (3)(a)(vi); 42 USC 667(467)(a). "The childsupport Formula developed by the bureau .. shall be used as a guideline in recommending childsupport" by the friend of the court offices. MCL (h). In 1998, the Friend of the court Actwas amended to also provide the Formula shall include guidelines for setting and administrativelyadjusting the amount of periodic payments on overdue A committee began work on this Guideline in 1983. It extensively reviewed methodologies in use,held public hearings, conducted original research, and received input from professional economistsand other SCAO adopted the first Guideline, which became effective May 1987. The Child SupportFormula Subcommittee reviews comments and makes recommendations for the periodic update ofthis Manual . The Michigan Child Support Formula is reviewed as required by federal legislation, more commonlyreferred to as the Family Support Act of 1988.

6 Comments regarding suggested changes to theformula should be made in writing to or mailed to: Michigan Child Support Formulac/o State court administrative Box 30048 Lansing, MI 48909 This document is available at: and atdepository libraries for the State of Michigan (see a list on the Library of Michigan web page at: ). 2004 Michigan Child Support Formula MANUAL11. This Manual is the Michigan Child Support Formula of 2004 , which may be abbreviated as 2004 MCSF. References to provisions in this Manual should include the year of the Manual cited andsection number being referenced. For example, this section could be cited as Michigan ChildSupport Formula of 2004 Section ," or 2004 MCSF of this FormulaThe Formula is based on common factors which are appropriate for use in the determination of childsupport obligations.

7 Based on the estimated costs of raising children and factors like parentalincome, family size, and ages of children, the Formula provides for appropriate Support amounts inorders involving the Support of Formula will assure greater uniformity by those who make recommendations and increasepredictability for those who require Child Support may be special cases where the Formula cannot be relied on exclusively. For these cases, theformula will provide the court and friend of the court with points of reference from which a supportdetermination can be made. The Formula will also assist parents in reaching agreements on the appropriate level of Child supportat the time of a divorce or other domestic relations proceeding, or upon modification of a (A) Support refers to the payment of money for a Child or a spouse ordered by the court ,and may include payment of the expenses of medical, dental, and other health care, Child care expenses, and educational expenses.

8 MCL (ee) contains a statutorydefinition of Support . (B)For the purposes of this Manual , a Child Support obligation includes payment for thegeneral care and needs of a Child , medical Support , health care coverage, and childcare. (C)A Support obligation includes separately calculated figures for the base Support (calculated in Sections - ), ordinary and extraordinary health care expenses,provision of health care coverage (Section ), and Child care expenses ( ). 2004 Michigan Child Support Formula of and Deviation from the (A)Required Application.(1)All Child Support recommendations and orders must follow the Formula ,whether or not the parties agree on the amount of Support , except where acourt determines that the Formula produces an "unjust or inappropriate"result. Except as otherwise provided in MCL , the court must orderchild Support in an amount determined by application of the Child supportformula.

9 (2)All Support orders must be stated in monthly amounts. MCL (1). (B)Agreements to (3) states that subsection (2) ( , MCL (2)) does not prohibitthe court from entering a Support order that is agreed to by the parties and thatdeviates from the Child Support Formula , if the requirements of that subsection aremet and deviation factors (a) - (d) are (C)Deviation Requirements.(1)The court may enter an order that deviates from the Formula if the courtdetermines from the facts of the case that application of the Child supportformula would be unjust or inappropriate, and it includes all of the following:(a)The Child Support amount determined by application of the childsupport Formula . (b)How the Child Support order deviates from the Child Support Formula .(c)The value of property or other Support awarded instead of thepayment of Child Support , if applicable.

10 (d)The reasons why application of the Child Support Formula would beunjust or inappropriate in the case. MCL (2).See:MCL , Ghidotti v Barber 459 Mich 189 (1998), and Burba vBurba 461 Mich 637 (2000). (2)The Michigan Supreme court has held that the statutory deviation factorsmust be recorded. While a trial court may enter an order of Support thatdeviates from the Formula , it may not do so without setting forth in writing oron the record why following the Formula would be unjust or inappropriate. Ghidotti v Barber, 459 Mich 189 (1998). The criteria for deviating from theformula are mandatory and, to fulfill its statutory duty, a court must carefully2004 Michigan Child Support Formula MANUAL3articulate these factors to memorialize and explain its decision. Burba vBurba, 461 Mich 637, 644-45 (2000).