Like the previous formula, the new Michigan Child Support Formula, which goes into effect October 1, 2008, takes into consideration the parties’ income, number of children, health insurance costs, number of overnights each party has with the children, different custodial arrangements for different children and other case specific factors.  However, instead of there being a “cliff” at 128 overnights where the child support drops like a rock, by making a slight modification to the mathematical equation, the cliff is replaced by a slope. In other words, the non-primary custodian will get some relief from paying  full child support when they spend over approximately 95+/- overnights, with the relief gradually increasing with the additional time spent, reflecting, with greater accuracy, the proportionate  division of parenting time between the 2 parents, without the sudden drop off at 128 overnights.  Judges, Referees and the Friend of the Court are required to utilize the new formula when ordering child support to take effect after October 1, 2008.

In the new Child Support Formula Manual, the court is also given greater flexibility to deviate up or down from the guideline amount where it would be unjust to apply the formula to the presenting facts. The original factors for deviation are in regular type. The modifications to the original deviation factors, and the new factors, are in bold face type.

Deviation from the child support formula - The court may deviate from the formula in certain circumstances, but must state in writing, or on the record, why they are deviating from the child support formula.  The court may consider any additional factors that it determines to be relevant to the best interests of the child. The original language of the Child Support Formula Manual is set out below, with the additional factors added under the new Child Support Formula Manual, set out in bold face type.

1. The child has special needs.
2. The child has extraordinary educational expenses.
3. One or both parties are minors.
4. The child’s residence income is below the threshold to qualify for public assistance, and at least one party has sufficient income to pay additional support that will raise the child’s standard of living above the public assistance threshold.
5. A parent has a reduction in the income available to support a child due to extraordinary levels of jointly accumulated debt.
6. The court awards property in lieu of support for the benefit of the child.
7. One or both parents are incarcerated with minimal or no income or assets.
8. One or both parents have incurred, or are likely to incur, extraordinary medical expenses either for themselves or dependant.
9. One or both parents earn incomes of magnitude not fully taken into consideration by the formula
10. One or both parents receive bonus income in varying amounts or at irregular intervals.
11. Someone other than the parent can supply reasonably and appropriate health coverage.
12. A parent provides substantially all the support for a stepchild, and the stepchild’s parents earn no income and are unable to earn income.
    
13. A child earns an extraordinary income.
    
14. The court orders a parent to pay taxes, mortgage installments, home insurance premiums, telephone or utility bills, etc. before entry of a final judgment or order.
    
15. A parent must pay significant amounts of restitution, fines, fees, or costs associated with that parent’s conviction or incarceration for a crime other than those related to failing to support children, or a crime against a child in the current case or that child’s sibling, other parent, or custodian.
    
16. A parent makes payments to a bankruptcy plan or has debt discharged, when either significantly impacts the monies that parent has available to pay support.
    
17. A parent provides a substantial amount of a child’s day-time care and directly contributes toward a significantly greater share of the child’s costs than those reflected by the overnights used to calculate the offset for parental time.
    
18. Any other factor the court deems relevant to the best interests of a child.

There are several other changes, including a more reasonable method for determining child support where a father is paying child support to different mothers, for children in different cases. With the original formula, the first child for whom he paid child support would get more than the second child, and the second, more than the third, and so on. Under the new Child Support Formula, he will be paying the same percentage of his wages for child support, for all his children.

Imputation Of Potential Income – Sometimes a person may try to under report, or feign an inability to work, just to try to manipulate the child support.  There are ways of dealing with this, so that the Court uses as a figure the potential income of that party.  The court may use certain factors both to determine whether the parent in question has an actual ability to earn and a reasonable likelihood of earning the potential income.  This too was modified commencing October 1, 2008, the new language being in bold face type.  To figure the amount of potential income that parent could earn, the court is to consider the following:

• Prior employment experience and history, including reasons for any termination or changes in employment.
• Educational level and any special skills or training.
• Physical and mental disabilities that may affect a parent’s ability to obtain or maintain gainful employment.
• Availability of opportunities to work in the local geographical area.
• The prevailing wage rates in the local geographical area.
• Diligence exercised in seeking appropriate employment.
• Evidence that the parent in question is able to earn the imputed income.
• Personal history, including present marital status and present means of support.
  
• The presence of the parties’ children in the parent's home and its impact on that parent’s earnings.
  
• Whether there has been a significant reduction in income compared to the period that preceded the filing of the initial complaint or the motion for modification.

Imputation of potential income should account for the additional costs associated with earning the potential income such as child care and taxes that a parent would pay on the imputed income.  The court makes the final determination whether imputing a potential income is appropriate in a particular case.

For more information on child support, please refer to:

• Child Support Overview
  
• Costs
  
• Duration of Child Support
• Modification of Child Support
• Special Needs of Children
• Enforcement of Child Support