Whether you have an existing child support order, are currently in pending litigation regarding child support, or feel that you are entitled to a modification of your current support award, October 1, 2008 is a date you must not forget. On October 1, 2008, the new Michigan Child Support Formula will go into effect and all new orders will be governed by it.
A. Parenting Time Changes
One of the most significant changes in the Michigan Child Support Formula is the removal of the shared economic responsibility formula. In the past, if a party had 128 overnights or more with their children, they were allowed to utilize the shared economic responsibility formula when calculating support. This formula took into account the amount of time spend with the payer and could lower the support amount by up to 30%. This has been removed from the October 1, 2008 changes. Instead, in EVERY case EVERY party will be given a parental time offset. This offset will calculate how many overnights each party has with the children, or expect to have, and utilize that number to determine the appropriate support amount. In addition, there will no longer be parenting time abatements.
B. Imputed Income Changes
In the past, Courts have had the authority to impute income on parties that were voluntarily unemployed or underemployed. The Court would often times look at past income or the party’s ability to earn a certain income. New case law has tightened the factors considered in imputing income and has focused on the amount of income the party can actually earn. Specifically, the party must actually be able to earn the income imputed. Potential income will not be calculated on more than a 40 hour work week, and will not include potential overtime or shift premiums. Income will not be imputed in cases where the individual currently works 35 hours per week and has chosen not to work additional time or overtime.
The courts will not look at numerous factors to determine whether a party has an actual ability to earn and a reasonable likelihood of earning the potential income. Some factors that will be considered are: prior employment experience and history, education level, physical and mental health, availability for work, availabilities in the local geographical area, and diligence exercised in seeking appropriate income.
C. Changes in Number of Children
Prior child support formulas distinguished between additional children based on whether they had an independent support order, or if they lived in the party’s home. The new formula does not do this. In addition, it does not consider support orders for additional children not of the union in question. Instead, a standard percentage is deducted from the parent’s income based on the total number of other children, regardless of where the children are living with them or ordered support. This will aid parties who pay below formula standards for additional children. These individuals will be given a credit for a standard support amount. In addition, it will help parties who have other children in their households, as it gives them a deduction based on full support.
D. Deviation Factors
The court will maintain the ability to deviate from the formulated amount of support in certain circumstances. Three new deviation factors have been added to the new support formula. These factors can be evaluated and considered when determining whether deviation is appropriate. The new factors are: restitution from a criminal proceeding, payments to bankruptcy, and a parent who provides daytime care and directly provides for a greater share of the child’s needs than allotted by the formula.
