Beginning on January 1, 2017, the formula used to calculate child support in Michigan will change.
This change is right on time considering the State Court Administrator's Office and the Friend of the Court Bureau work to update the formula every four years. The last alteration to the formula was in 2013.
This January, the new edition of the formula will be enforced and will cover the following:
Health Care Coverage: Previously, cost of a parent's health care coverage was not considered in calculating income. Now, cost of mandatory health care coverage will be deducted from a parent's income available for support. Also, Employer contributions to a parents Health Savings Account are no longer considered income as well as changes that should make it easier to determine which parent should maintain child's health care coverage.
Child Support and Business Owners: Now, a parent may deduct the straight-line depreciation of personal property from their income for support. Also, parents who own a business will continue to be subject to heightened scrutiny in performing support calculations.
Imputation of Income: When one parent chooses not to work despite being capable, the child support formula imputes them with income they could be earning. New formula now considers a number of factors including geographic region and present condition of working parent.
Changing an Existing Order: Support orders entered prior to January 1, 2017 will be calculated using the old formula. If the new formula would result in substantial change, individuals can file a motion asking the court for the reduction.
If you have child support issues, contact Dan Williams at [email protected]. The firm has decades of experience helping clients with Family Law issues, including child support, divorce, custody disputes, adoptions, and a variety of other matters, including conflict cases.