Every child in Michigan has a legal right to financial support from their parents. Understanding how the Michigan Child Support Formula works, and what your options are under it, can help you streamline your child support case and even reach a settlement that provides your children with reasonable access to funds.

When Does the Michigan Child Support Formula Apply?

Any time a child's financial support is in court, the Michigan Child Support Formula (MCSF) controls who pays how much to whom. The MCSF isn't just a math equation. It is a 36-page manual that attorneys, Friend of the Court personnel, and judges must use to determine a fair child support amount. It applies to cases involving:

• Divorce with children
• Child custody and parenting time (this always includes a child support order)
• Legal parentage of a child (formerly a “Paternity” action)
• Guardianship or Third-Party custody cases
• Stand-alone child support actions (often filed by the prosecutor after a single mother requests state financial aid)
• Post-judgment modification of child-related orders
• Regular child support reviews (which can be performed every 3 years by the Friend of the Court)

The MCSF does not apply to parties' contractual agreements to pay for children's support after they turn 18 (or 19 ½ if living with a parent and attending high school).

What Facts are Considered Under the Michigan Child Support Formula?

The Michigan Child Support Formula is based on:

·       Combined income of both parents

• Income attributed to each parent
• Overnight offsets
• Childcare costs (up to age 12)
• Healthcare and insurance costs

When child support comes before the Court, or when the Friend of the Court is conducting a child support review, you will be asked to provide proof of your income (such as tax returns, W-2s, 1099s, or paystubs), as well as receipts for child support payments and health costs.

What Counts as Income for Child Support Calculations?

The biggest source of disagreement in child support cases is determining each parent's income. The Michigan Child Support Formula defines income very broadly, with the goal of catching any source of funds the parent receives on a consistent basis. While most parents' income is calculated based on their year-end W-2, 1099s or tax returns, parents with more complicated income sources can face legal challenges when it comes to calculating the proper number.

Self-Employed Parents and Business Owners

The MCSF warns that determining the correct income for self-employed parents and business owners can be complicated because their tax returns often do not reflect the assets at their disposal. If you are self-employed, you may be entitled to alternative compensation, such as a company car. You could receive unreported cash payments or tips. You might claim depreciation or tax exemptions that need to be added back into your income. If either or both parents are self-employed, it is important for you to discuss your full financial picture with your child support attorney, so that they have the information they need to calculate support.

Unemployed and Under-Employed Parents

Another source of child support disputes comes from parties who have historically been stay-at-home parents or taken part-time positions to be available for their children. Decisions that families reach over the division of labor during a marriage or peaceful relationship do not always translate well post-separation.

The MCSF says if a parent is voluntarily unemployed or underemployed the Court can calculate support using “potential income” based on:

• Prior work history
• Education, certification and training
• Physical or mental disabilities and the ability to work
• Availability for work
• Availability of positions
• Wages and hours of similar positions in your geographic area
• Your efforts in obtaining employment
• Personal history
• The effect of the children being in the home
• Voluntary reduction in income

The Court can also assign additional income if you are “under-employed,” working part time or in a position outside your field. However, the Court may not “impute” overtime pay or a second job if you are employed full-time.

Deviation and Exceptions Under the Michigan Child Support Formula

Sometimes the math equation behind the Michigan Child Support Formula results in a number that doesn't make sense for the children's needs. In these cases, the Court may find clear and convincing evidence to “deviate” from the formula and enter a different child support number. Some common reasons for deviation include:

• Special needs
• Private school or extraordinary educational expenses
• A parent on public assistance
• Substantial jointly accumulated debt (i.e. bankruptcy cases)
• Property awards for the child's benefit
• Extraordinary medical expenses
• Variable or bonus income
• Support of other dependents
• Daytime parenting time not reflected in overnights
• Non-modifiable spousal support awards
• The best interests of the children

In extremely high income families, the MCSF calculation can sometimes award more money per month that can reasonably be spent on the child. Since 2021, the formula has instructed Courts to use discretion to reach a reasonable child support amount for children of affluent families based on their actual needs.   

Negotiating a Child Support Settlement

Because the MCSF controls child support awards, it should be the starting point for negotiating any child support settlement. While you and your co-parent can agree to deviate, you will need to explain why the deviation is necessary to the Court. More often, negotiating a child support settlement involves agreeing on a parent's income for child support purposes, or the number of overnights to be used for the calculation. Once those numbers are set, the formula generally controls.

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.