Parents must pay for the care and support of their children. Whether you are in the midst of a divorce or are a single parent, a uniform child support order can help ensure that your children have what they need to thrive. The Michigan family law attorneys at Bebout, Potere, Cox & Bennion, P.C., know how Michigan courts calculate child support and can help you make sure your children's needs are met.
Family Court Cases Involving Child Support Awards
Children's support comes before the Michigan family courts in many ways. Depending on the relationship of a child's parents (and any third-party custodians), you may raise the issue of child support in a:
- Child support case against an acknowledge parent or separated spouse
- Divorce between the child's legal parents
- Child Custody action between unmarried parents
- Parentage lawsuit establishing the legal parentage of a child born out of wedlock
- Guardianship or Third-Party Custody case, most often filed by the child's grandparents
The Michigan Child Support Formula
Any time a child's financial support comes before the Michigan courts, the judges and the Friend of the Court will apply the Michigan Child Support Formula. This formula is based on the needs of the child and the actual resources of each parent. It is applied using the parties' combined income, each parent's share of that combined income, and how many overnights the children spend with each parent. Adjustments are made for any other children of either party, as well as health insurance and childcare costs. While you can argue that the court should deviate from the amount recommended by that formula, you will need to present clear evidence that the formula amount would be unjust or inappropriate. In most cases, the amount indicated by the formula is the amount a parent will be ordered to pay.
What Counts as Income in Calculating Child Support
Because the formula controls almost all child support awards, most child support litigation centers around disagreements over one or both parents' income. The Michigan Child Support Formula defines income broadly, and can include:
- Wages or salary
- Commissions, bonuses, and shift premiums
- 1099 income
- K-1 business owner distributions
- Profit-sharing payments
- Pension payments
- Insurance or annuity benefits
- Trust distributions
- Unemployment compensation and social security disability benefits
- Workers' compensation payments
- Capital gains
- Work benefits and in-kind compensation (such as company housing or vehicles)
- Gambling winnings (in some cases)
- Employer retirement contributions
- Certain personal loans from business interests
- Deferred or reduced income by business owners
- Spousal support paid by someone other than the child's other parent
The Court can also consider the payer's overall financial condition in order to enter a child support order that adequately provides for the child's needs and standard of living.
Child Support from Unemployed Parents
Not every parent is employed. The parties may have previously agreed one parent would stay at home with the children. Sometimes a parent is disabled. In others, a child's disability requires full-time care. In still other cases, one or both parents may simply be temporarily unemployed. The Michigan Child Support Formula has ways to account for such circumstances.
If a parent is unemployed or underemployed but able to work, the Court can assign a potential income (previously called imputed income) to that parent for use in the Michigan Child Support Formula. This is generally based on what the court believes the person would be able to earn if he or she found meaningful employment. The Court may not impute income above or beyond a person's actual full-time employment. However, if a parent has chosen to reduce hours or work below his or her skill level, adjustments can be made.
If the person is unemployable – such as due to a long-term disability – the Court is not required to impute income to that parent. However, there are other financial resources available – including dependents' benefits through Social Security Disability Insurance – which can be used to contribute to the financial support of a child.
Can You Modify a Child Support Award After It is Entered?
A Uniform Child Support Order is always modifiable based on a parent's changed financial circumstances or the needs of the child. However, any order modifying child support will only be retroactive to the day the motion is filed. Common changes in circumstances that result in a child support modification include:
- You lose your job
- You become disabled or unable to work
- You are sentenced to jail or prison time
- Your co-parent obtains a new position
- You have another child
- The custody and parenting time arrangement for the child changes
One common mistake Michigan parents make is waiting too long to file a motion to modify child support. This can result in increased unpaid arrearages when a payer can no longer afford the court-ordered support. That is why it is important to talk to a Michigan child support attorney promptly if any of these circumstances arise.
Get Help with Child Support from a Michigan Family Lawyer
At Bebout, Potere, Cox & Bennion, P.C., we care about you and your family. We help individuals and families in Rochester Hills, Rochester, Troy, Lake Orion, Oxford, Oakland County, Macomb County and throughout Southeast Michigan. We can help you apply the Michigan Child Support Formula and ensure that your children have the financial help they need to thrive. Call us at 248-651-4114 or contact us here to speak to an attorney.